Are you considering changing accountants? Perhaps your service requirements have changed, or you’ve been disappointed with a service, or your current accountant is retiring. When we meet potential new clients, we are often asked “how do I change accountants?” In this article, we hope provide some clarity around the process of moving accountants, as well as some sharing some useful tips.

How do I change accountants?

Having made the decision to consider changing accountants, you may find yourself wondering what the process is to take the leap and move your affairs to another firm. Afterall, your current accountants have all your financial records, so it’s only natural to want to make sure you understand the process before changing accountants.

To help explain the process and suggest things to consider when choosing a new accountancy firm to work with, we’ve categorised the journey into 8 simple steps.

1. Evaluate your needs:

You’ve made the decision to consider changing accountants. Why…? Try and determine why you’ve reached this decision. This should help you identify what you are looking for and expect from a new accountant. Consider factors such as their expertise, services they offer, fees, location, and reputation. Tip – understanding and being clear with your expectations will help later, when meeting prospective firms.

2. Research and shortlist:

Decide whether it’s important for you to have a local accountant in your area or whether you should consider an online service. Ask for recommendations from friends, or other business owners. You can also check professional directories, such as the Association of Chartered Certified Accountants (ACCA) or the Institute of Chartered Accountants in England and Wales (ICAEW) for qualified professionals. Tip – if you use a specific software such as Xero, you can search for accountancy firms who specialise in the software, by using their online directory.

3. Contact potential accountants:

Contact the accountancy firms you’ve shortlisted to arrange an initial chat. Discuss your requirements, provide details of your business, and ask any questions you may have regarding their services, fees, and experience. This will help you assess if they are a good fit for your needs. Tip – a good firm will lead this meeting and ask questions to learn about your business, your background, and ambitions. Ensure you have all the information about the firm you set out to discover from the meeting. If not, don’t be afraid to arrange a follow-up call or meeting to run through any remaining questions.

4. Request proposals and quotes:

Ask the potential accountants to provide you with a proposal detailing the services they would provide and the associated costs. This will help you compare the offerings and make an informed decision. Tip – your decision shouldn’t just be based on cost. Sure, it should be high up your considerations, but hiring an accountant should be a mid to long-term decision and you want to get it right. The right accountant will be a partner in your business, there to provide support on your finances.

5. Notify your current accountant:

Once you’ve decided which firm you’d like to work with, inform your current accountant about your decision to change. Be professional and provide them with sufficient notice to ensure a smooth transition. Tip – before you begin your search for a new accountant, check your current contract (usually referred to as a “letter of engagement”), to see if you have any termination procedures or notice periods to adhere to.

6. New engagement agreement:

Sign an engagement letter with your new accountant, outlining the scope of work, fees, and any other relevant terms and conditions. This document will formalise your working relationship. Tip – read the small print, particularly around periods of engagement, notice periods, and fees.

7. Transfer your records:

Once you’ve selected a new accountant, work with them to transfer your financial records and relevant information from your previous accountant. Ensure all necessary documentation is properly transferred and shared securely. Tip – the transfer of records is usually taken care of between the two firms, and just requires your confirmation of who your new firm is and that you’re happy for records to be transfer across.

8. Update authorities and contacts:

Inform HM Revenue & Customs (HMRC), about the change in your accountant’s details. Tip – Also ensure that if your registered office address was your previous accountants, update it to your new address at Companies House. Also make sure this address is updated with your bank and other contacts.

We hope these 8 steps help and provide some general support and guidance through the process of changing accountants. But please remember, the specific process may vary based on your circumstances and you should refer to any contractual agreements you have with your current accountant.

(E) enquiries@advaloremgroup.uk (T) 01908 219100 (W) advaloremgroup.uk