Switching
How to switch accountants: a simple step-by-step guide
Switching accountants is far easier than most owners fear. Here's exactly how it works, step by step, and how long each stage really takes.
Most business owners stay with an accountant they've outgrown for one reason: they think leaving will be a hassle. It isn't. Your new accountant does almost all of the work, and you can switch at any point in the year without disrupting your accounts. Here's the whole process, start to finish, so you know exactly what to expect.
Step 1: Choose your new accountant first
Never resign from your current firm until you've lined up the next one. Once you've chosen a new accountant, they lead the changeover. Take your time getting the choice right, because a good fit for your sector, size and the way you like to work matters far more than saving a few pounds a month.
Step 2: Sign up and give your details
Your new firm will run standard anti-money-laundering identity checks and ask you to sign a letter of engagement. This sets out what they'll do and what it costs. It's the point where a good firm shows its colours: clear scope, clear price, no surprises.
Step 3: They request professional clearance
Your new accountant writes to your old one, a formality called professional clearance. It asks whether there's any reason they shouldn't act for you, and requests your records and information. You don't have to have an awkward conversation yourself. Your old firm is professionally obliged to hand over your paperwork.
Step 4: Records are handed over
Once clearance is granted, your old accountant passes on the essentials: previous accounts and tax returns, your trial balance, payroll and VAT records, and any tax reference details. Reputable firms do this promptly and free of charge.
Step 5: Authorise them with HMRC
Finally, you authorise your new accountant to deal with HMRC on your behalf, usually via a code HMRC posts to you, or through their agent services account. From there, they take over filing and correspondence.
How long does it take?
The active work on your side is an hour or two, spread over a couple of weeks. The main variable is how quickly your old accountant responds to the clearance letter. Most switches complete comfortably within two to four weeks.
- You don't need to wait for your year-end to switch
- You don't pay two firms at once for the same work
- Your new firm handles the handover and HMRC authorisation
- Your old firm must release your records
The hardest part is simply deciding to do it. If you'd like the choice made easier, tell us what's not working and we'll match you with a local firm that fits, then they'll handle the switch for you.
