Understand the TTRT-e and how the accountant transfers their clients

The TTRT (Technical Responsibility Transfer Term) is an important document when it comes to the choice to change the professional responsible for the accounting of a company. This document is necessary for the successor to give good continuity to the work already done.

It is essential that those who own their own business are aware of this matter to prevent an error or fraud from happening.

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If you already follow our blog, you know that when we bring something here, it's to help you with your company - regardless of what sector it operates in. Therefore, continue with us and learn more about this topic that is so important for the financial health of any venture!

But then, what is TTRT-e?

What an unpronounceable acronym, isn't it? But accountants are already used to it! The TTRT-e is the electronic version of the Technical Responsibility Transfer Agreement, an excellent tool both for digital accountants - who use certifications and digital signatures to make their documents official - and for companies.

It is an online file that must be completed by the accountant responsible for a company when the company leaves office. It can be delivered - or sent - upon termination of a contract, it also certifies that the previous technician must send all the information from the sector to the person who will succeed him.

Check out our post about How to expedite the dismissal process so you don't have any doubts when you turn off your meter.

The need for this documentation is spelled out in the Accountant Code of Ethics, which explains that the former accountant must provide the necessary data for the next one to be able to carry out their activities.

The electronic version of this term is made available by the Regional Accounting Council of each state on its own website. However, for this to be legally valid even if it is online, it is necessary to have the appropriate certification.

Performing this step is mandatory for some states and, for those that do not require it, it remains a good practice. This is because it benefits both the professional, who has legal support to prove their activities, and the company that does not run the risk of ending up having information exposed.

How does this transfer work?

When a contract ends or is terminated, you can't leave such private information about your business in the hands of someone who no longer has a connection with the company, right? Not only is this unethical, it also violates the General Data Protection Act.

For this reason, all files must be transmitted to the customer, or to their legal representative — normally, the new accountant. This condition is explicit in CFC Resolution No. 987/2003 What quote:

Art. 5ºB. The Professional Services Provision and Transfer of Technical Responsibility District must include the client's responsibility to receive their documents that are in the possession of the former responsible
technician.

Single paragraph. The customer may appoint a legal representative to receive the documents, subject to written authorization, preferably the new technical manager.

There is a series of information regarding a company or its transactions that are under the care of the accountant. They are receipts, copies of documents sent, receipts, and statements that are essential for legal proof of the activities carried out by a company. Among some examples of what needs to be in this data passage, we can mention:

• purchase and sales invoices;
  
• updated balance sheet;
  
• proof of employee payments and taxes;
  
• certificate and digital signature of the company, if any;
  
• product inventory.

It is up to the professional to gather all this information and organize it to pass on to the contractor. At that moment, the practicality of the TTRT-e stands out, allowing this entire operation to be safer and more agile.

Why use the TTRT-e instead of the traditional version?

When changing accountants, a series of demands can be observed, such as the opening of the dismissal process, the completion of more urgent activities, the transfer of information to the next technician, among others.

Therefore, all the tools that speed up these steps are of great help and this is the main reason for using the electronic version of the Technical Responsibility Transfer Agreement.

Studies suggest that 80% of all workplace information is still processed on paper. This can be problematic for accountants and professionals in the field.

In addition, when we think about sending the term virtually, we also cannot help but consider sending the rest of the necessary files. If they're all in the virtual environment, it's easier to organize them, check them out, and not let anything get left behind. It will also guarantee monetary savings (with the expenditure of papers) and greater sustainability (when caring for the environment).

We recommend reading our post with 5 Tips for Securely Archiving Files to be aware of various ways to preserve the privacy of documents and the legality of your business!

And for the digital meter, how is the TTRT-e advantageous?

We must remember that the Regional Accounting Councils use the TTRT to oversee the activities of those associated with them, as well as to investigate possible irregularities alarmed by means of a complaint.

By keeping all the files of this process in the virtual environment, as with the use of the Electronic Term, it is easier for them to check the steps taken during this operation and the appropriateness of their work.

In addition to being backed by this protection when verifying their service, the digital accountant also benefits from this document in other ways. Regardless of the reasons that led to the termination of this contract, the transfer always causes headaches. With this digital option, it's less stressful and faster to pass on your clients and their files.

What to pay attention to when changing accountants?

It's not enough just to change the person responsible for your company's accounting, you need to be careful with other important points when requesting the files and terminating the previous contract. In addition, of course, to complying with the monetary obligations incumbent on the contractor, there are other things to pay attention to. They are:

• dates of the dismissal process;
• the veracity of the digital documents provided;
• the correct completion of all terms and documents;
• whether all files have been passed on;
• if there is any additional information that is not documented, but that the new accountant needs to carry out his tasks;
• the security of the transfer process.

This last topic is the one that most concerns any entrepreneur. But thankfully, Is there a market trend that has increased in recent years and that solves this concern: a digital accounting.

We have a full post on this topic, talking about how it works and other details. However, let's stick to how it enhances the transfer of technical responsibility.

How can digital accounting help with this process?

Technological progress offers benefits for all sectors, from digital medical prescriptions, even automations for large exports. It would not be different in the case of accountants: the digitization of this area offers a series of benefits both for self-employed professionals and for companies that seek organization and practicality in matters related to accounting.

As we said in the previous topic, this trend makes all the difference in the process of transferring accounting information to a company's next technician. When a document is drawn with the certificate and digital signature, these guarantees make it impossible to change the encrypted content there.

Therefore, the accountant who uses these resources when sending them to his contractor at the time of termination, guarantees that they will not compromise the data provided by him.

Using blockchain technology to transfer all private information from one accountant to another, it will be secure in the cloud, archived in a practical way and the entire process will have much less red tape.

See the post”Understand the relationship between digital signature and blockchain!” and learn more about the topic that will be increasingly present in the business sector!

Be sure to use all the information about TTRT-e to improve your performance in the accounting sector. And if you want to digitize your processes, as the main companies in the market do, in an applicable and legally valid way, don't waste time and discover our Plans and Pricing.