Changing Accountant: When, Why & How to Change Accountant

Rayhaan Moughal

As a business owner, having a reliable and knowledgeable accountant is crucial for the financial success and growth of your company. Accountants play a significant role in managing finances, providing strategic advice, and ensuring compliance with tax regulations. In this blog post, we will discuss when, why, and how to change your accountant, whilst addressing common concerns about the process.

When to Consider Changing Your Accountant

A. Signs that it's time to change your accountant

  i. Poor communication or unresponsiveness: If your accountant is consistently hard to reach or fails to respond to your queries in a timely manner, it could signal the need for a new professional.

  ii. Lack of proactive advice: A good accountant should provide strategic advice and help you identify opportunities for growth and tax savings. If your current accountant is not proactive, you may benefit from finding someone who is.

  iii. Limited knowledge in your industry: An accountant who understands the nuances of your industry can provide tailored advice and better serve your business. If your accountant lacks industry expertise, consider switching to one with more experience in your field.

  iv. Inadequate use of technology: If your accountant is not utilising modern technology to streamline processes and improve efficiency, you could be missing out on valuable tools that can save time and money.

B. Timelines for making the switch

  i. End of the financial year: Changing accountants at the end of the fiscal year can provide a clean break and make the transition smoother.

  ii. During a significant business change: If your business is going through a significant event, such as a merger or acquisition, it might be an opportune time to reevaluate your accountant.

  iii. When you have concerns about your accountant's performance: If you're dissatisfied with the level of service provided by your current accountant, it's essential to address the issue promptly to prevent financial complications.

Why You Should Change Your Accountant

A. Reasons for dissatisfaction with your current accountant

  i. High fees with no added value: If you're paying high fees but not receiving valuable advice or services in return, a change could be beneficial.

  ii. Mistakes in financial statements or tax filings: Errors in your financial records can lead to severe consequences. If your current accountant is making mistakes, it's worth looking for a more accurate professional.

  iii. Difficulty understanding your business needs: A good accountant should be able to grasp your business's unique needs and goals. If your accountant fails to understand these, it might be time for a change.

B. Benefits of finding a new accountant

  i. Improved financial management and decision-making: A skilled accountant can help you make better financial decisions, ensuring your business's long-term success.

  ii. Access to specialised services tailored to your industry: An accountant with industry-specific knowledge can provide valuable insights and services that cater to your business needs. Switching to an expert in your field can significantly enhance your financial management.

  iii. Potential cost savings: By working with a more efficient and knowledgeable accountant, you may uncover new opportunities for tax savings or streamlining business operations, ultimately saving you money.

How to Change Your Accountant

A. Finding a new accountant

  i. Researching and comparing options: Start by researching potential accountants online, comparing their services, fees, and experience. Look for those with expertise in your industry and a proven track record.

  ii. Seeking recommendations from peers: Ask fellow business owners or industry contacts for recommendations. Personal referrals can provide valuable insights into an accountant's performance and reliability.

iii. Interviewing potential candidates: Schedule interviews with a few shortlisted accountants to discuss their experience, services, and approach to working with clients. This will help you determine if they're a good fit for your business.

B. Transitioning to the new accountant

  i. Informing your current accountant of your decision: Notify your current accountant of your decision to change, ideally in writing. Be professional and courteous in your communication.

  ii. Professional Courtesy Request: Your new accountant will send a professional courtesy request to your current accountant, asking for the necessary documents and information to facilitate a smooth transfer of your financial records. This request is a standard practice and demonstrates professionalism and cooperation between both accountants. It's essential for the business owner to provide the new accountant with the necessary contact information and authorisation to make this request on their behalf.

  iii. HMRC authorisation: To ensure your new accountant can handle your tax affairs, they will need to be authorised by HMRC. This typically involves completing a form called the 64-8 (Agent Authorisation Form). Your new accountant will guide you through the process, and you may need to provide some personal and business information, such as your Unique Taxpayer Reference (UTR) and National Insurance number. Once submitted and approved, your new accountant will have the authority to communicate with HMRC on your behalf and access relevant tax information. It's crucial to complete this step promptly to avoid any disruptions in your tax affairs during the transition period.

Overcoming Concerns About Changing Accountants

A. Addressing common misconceptions

  i. The process is not as time-consuming as it seems: With proper planning and communication, changing accountants can be a relatively quick and painless process.

  ii. The transition can be smooth and hassle-free: By working closely with both your current and new accountant, you can facilitate a seamless transition of your financial records and responsibilities.

B. Tips for a seamless change

  i. Collaborate with both the current and new accountant: Ensure open communication between both parties to guarantee the smooth transfer of all relevant information and documents.

  ii. Ensure proper communication and planning: Discuss your expectations and needs with your new accountant, and establish a clear plan for moving forward. This will help you avoid potential issues and maintain continuity in your financial management.

Changing accountants may seem daunting, but it can be a necessary step for the success and growth of your business. By understanding when, why, and how to change accountants, and addressing common concerns, you can make an informed decision and facilitate a smooth transition.

Don't let the fear of change hold you back from improving your business's financial management and achieving your goals. Partner with a knowledgeable accountant who understands your unique business needs. Discover if we are the right match for your business by booking a call with one of our expert accountants today.

Book your call here.