What happens when you change accountants?

29th October 2020

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Many businesses and individuals change accountants. Maybe your needs have changed as you’ve grown and you want to work with an accountant offering multiple services. Or maybe working with an accountant based nearer to your offices will give you the benefit of a more personal service?

Whatever the reason, once you know what you need, you can begin the search for a new partner. But what happens when you find the accountancy practice that’s right for you? And what do you do next? Here’s the answer.

Check the agreement with your current accountant. Do you need to serve a notice period? Do you owe them fees or will they need to repay unused time?
Have an open and honest conversation with your new accountant about what you need. Your new accountant will draw up a letter of engagement outlining the expectations of each party, the stipulated fees, and the level of service which will be provided. Both parties need to sign this letter.
The Dear John bit. Once you’ve found an accountant that suits you and your business, you’ll need to let your current accountant know that you’re switching. You’ll need to inform them that your new accountant will be in contact to request clearance and organise the transfer of key documents.
Your existing accountant needs to provide a letter of disengagement in return for your notice letter. The letter of disengagement details the work they have completed up to this point, including key dates and information.
Once the letter of engagement with your new accountant is signed, they will request authorisation from relevant HMRC departments, to allow them to act on your behalf.
Your new accountant should now spend time getting to really understand your business, your history and future plans.

TIP: Do remember to change the passwords for any online software that your old accountant used previously.

HB Accountants are accountants for business. If you would like to learn more about us and discover how we can give you real confidence in the future of your business, then contact Karen (karenr@hbaccountants.co.uk) or Keith (keith@hbaccountants.co.uk).

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