A Guide to Switching Accountants in the UK

Please note that this page contains affiliate links. While we only recommend products that we believe in, we may benefit financially from any purchases you make.

Many small businesses choose to switch accountants for a variety of reasons. Perhaps the current accountant is not providing the needed level of service, or maybe the business has outgrown the accounting firm and needs a more specialised provider. Changing accountants can also be a way to save money, as different firms may have other pricing structures.

Sometimes, a small business may switch accountants to get a fresh start. Whatever the reason, switching accountants can be a difficult but necessary decision for many small businesses.

Switching Accountants for Small Businesses

Reasons to Switch Accountants

There might be many reasons that small business owners may look to change their accountant; here are a few:

You’re Not Happy with the Service you’re Receiving

If you’re not happy with the level of service you’re receiving from your current accountant, it may be time to switch. Your accountant should be available to answer your questions and address your concerns in a timely manner. If you feel you’re being ignored or your calls are going unanswered, it’s time to find someone new.

You Want a Dedicated Accountant

Sometimes when working with an accounting practice, you get passed around from person to person for different parts of your business. Dedicated accountants can make working with an accountancy firm easier for a small business owner. It gives a chance for the accountant to get to know your business and accounting needs.

You’re Not Getting the Results you Want

If you do not see the results you want from your current accountant, it may be time to make a change. Perhaps your tax bill is higher than it should be, you do not see the savings you were expecting, or you are not getting the financial reports that the business needs to make decisions.

Your Business has Grown and Changed

If your business has grown and changed since you first hired your accountant, it may be time to switch to someone specialising in working with businesses like yours. As your business grows, your accounting needs will change, and it’s essential to have an accountant who is well-versed in the specific needs of your business.

You’re Paying too Much

It may be time to shop around if you feel you’re paying too much for accounting services. Get quotes from several different accountants to see who can offer you the best rate for the services you need. Don’t sacrifice quality for the price, but make sure you’re not overpaying for services that could be obtained elsewhere at a lower cost.

You No Longer Trust your Accountant

If you no longer trust your accountant, it’s time to find someone new. Perhaps there have been questionable charges on your bill, or you’ve lost confidence in their abilities. Whatever the reason, if you don’t trust your accountant, it’s time to find someone else who can better meet your needs.

Company Tax Affairs

You should consider switching if you have lost confidence in your previous accountant completing your tax affairs. Make sure you find an experienced and knowledgeable accountant in the area of tax compliance that your business requires.

It is essential as a business to ensure that you comply with all legal and tax requirements, so choosing the right accountant is necessary. You do not want to be penalised for filing late tax returns.

Your Accountant has Retired

When an accountant retires, it can be difficult to find a new one who can pick up where the old one left off. Good accountants are not easy to come by, and those who are experienced and qualified can be very busy

If you’re lucky, your accountant may have a colleague or friend who is looking for a new opportunity and is interested in taking over their practice. Otherwise, you’ll need to start from scratch and interview several candidates before finding the right person for the job.

How to Change Accountants in the UK 

There are several reasons why you might need to switch accountants. Perhaps your current accountant is too expensive or lacks the expertise you need to grow your business. Maybe they’ve retired, or you need more accountant support. Whatever the reason, moving accountants can be a daunting taskā€”but it doesn’t have to be. You can make the transition seamlessly with a bit of research and planning. Here’s what you need to know.

Research Your Options

When looking for a new accountant, it’s essential to research and find someone who meets your specific needs. Make a list of the qualities important to you, such as experience, cost, location, and availability.

Once you’ve compiled your list, start reaching out to potential candidates and set up consultations. This will allow you to get to know them and their work better before making a final decision.

Enrol with a New Accountant

When you have chosen a new accountant, they will provide a ‘letter of engagement outlining their terms and conditions. Read this carefully before signing to ensure that you understand their services and fees.

They will also need to complete an anti-money laundering check and proof of identity.

You will need to sign an HMRC form 64-8 authorising your agent to complete your tax affairs; it includes both individual and company tax affairs.

Professional Clearance

The new accountant will write a professional clearance letter to your previous accountant. This will allow them to access your business accounts and financial records, so they can hit the ground running when they start work.

Give Notice to Your Existing Accountant

Once you’ve found a new accountant you’d like to work with, it’s time to give notice to your current one. It’s essential to do this in writing so there’s no confusion later. Include the date you’ll terminate the relationship and any instructions for transferring files or records to the new accountant.

Transfer Files and Records Over Carefully from your Previous Accountant

This is perhaps the most crucial step in switching accountants. If you find a good accountant, they will take care of most of this task for you.

You’ll need to carefully transfer your financial records to your new accountant so they can hit the ground running. This includes everything from invoices and receipts to bank statements and tax returns.

Considerations when Switching Accountants for small business Owners

When it comes to changing accountants, timing is everything. For example, you don’t want to switch in the middle of the tax period, as that can create unnecessary complications with your tax records.

Instead, plan to switch at the end of the financial year. That way, your old accountant can help with the transition and ensure that your records are in order. You’ll also want to give yourself plenty of time to interview new candidates and find an accountant who is a good fit for your business. Hiring a new accountant can be seamless and painless with little planning and forethought.

Conclusion to Finding a New Accountant

Making the switch from your previous accountant to another doesn’t have to be stressful as long as you’re prepared. You can make the transition seamless and stress-free by doing your research, giving proper notice, and transferring files carefully. So don’t delay; if you’re unhappy with your current accountant, start exploring your options today!

Related Articles

Benefits of hiring an accountant

Similar Posts