How to Change Accountants – A Simple Step-by-Step Guide
If you’re wondering how to change accountants, this guide explains the process clearly and simply so you can switch without disruption.
Why you might want to change accountants
There are many reasons a business owner decides to change accountants. Common triggers include:
- Insufficient support or lack of required services
- Poor customer service or slow responses
- Limited industry-specific knowledge
- Perceived poor value for money
- Retirement or availability issues with your current accountant
An accountant plays a vital role in your business. The right accountant can save you time, money and reduce stress; a poor accountant can lead to missed deadlines, incorrect filings or unsuitable advice.
How to choose a new accountant
Before you change accountants, take time to choose the right replacement. You want to avoid repeating past issues, so consider experience, communication style, fees and software compatibility.
For a checklist of questions to ask, see our How to Choose an Accountant guide.
Is it difficult to change accountants?
No — despite what you may be told, changing accountants is usually straightforward. Your new accountant will typically manage most of the transition and advise on timing to reduce disruption.
How to change accountants — the process
1. Check for outstanding liabilities
Make sure all fees and any outstanding work with your current accountant are settled before you switch.
2. Ask your new accountant for guidance
Your new accountant will usually provide a draft letter to send to your old accountant and will advise when it’s best from a business perspective to change.
3. Consider the best time to switch
Choose a quieter period for your business where possible — avoid switching in the middle of year-end accounts or tax return preparation.
4. Notify your old accountant in writing
Inform your old accountant that you are changing accountants and grant permission for them to liaise with your new accountant. This can normally be done by email unless a physical letter is requested.
5. Receive a disengagement letter
Your existing accountant should issue a disengagement letter outlining the work completed, key dates and any outstanding matters.
6. Professional clearance
After receiving the disengagement letter, your new accountant will request professional clearance so they can take over your financial affairs and obtain the necessary records.
7. Register with your new accountant
Once clearance is granted, you’ll complete registration forms and provide ID (for example, a passport or driving licence and a recent utility bill) as part of standard checks.
8. Agree a letter of engagement
Your new accountant should issue a letter of engagement that sets out the services, fees, and expectations from both sides.
9. Update accounting software access
Remove your previous accountant’s access from your accounting software and add your new accountant so they can begin working on your accounts.
10. Update HMRC agent details
If your previous accountant held agent authorisation with HMRC, these details need to be updated. Your new accountant will usually handle this for you.
If you follow these steps, you’ll know precisely how to change accountants with minimal fuss. Your new accountant should guide most of the process — all you need to do is pick the right partner and confirm the paperwork.