Switching
Professional clearance: what it is and how it works
The bit of the switch that sounds formal but takes you almost no effort. Here's what professional clearance is, who does it, and what to expect.
When you move accountants, you'll hear the phrase "professional clearance". It sounds like red tape, but it's actually the mechanism that makes switching painless, because it puts the work on your new accountant, not you.
What professional clearance actually is
Professional clearance is a standard letter your new accountant sends to your old one. It does two things: it asks whether there are any professional reasons they shouldn't take you on, and it requests the records and information needed to act for you. It's a courtesy between firms and a normal part of any changeover.
What you have to do
Almost nothing. You give your new firm your old accountant's details and sign a short authority so they can request your information. That's it. You don't have to write to your old accountant or explain yourself.
Do you have to tell your old accountant you're leaving?
It's polite to, and a brief email is plenty, but the clearance letter formally notifies them anyway. There's no need for a difficult conversation. Firms change clients all the time; it's routine.
What if your old firm is slow, or you owe them money?
- They can't hold your records to ransom, but they can withhold some documents until outstanding fees are paid, so settle any genuine bill
- Your basic records and information must still be passed on
- If they drag their feet, your new accountant will chase; persistent delays are rare
In short, professional clearance is the reason switching feels so much lighter than people expect. Choose the right new firm and they carry the process. If you'd like help choosing, take the free review and we'll match you.
