What Actually Happens When You Switch?

You know you're not entirely happy with your accountant.

Perhaps communication has become frustrating, you don't feel you're getting useful advice or you've started to wonder whether another firm might be a better fit.

But then you think about everything involved in changing.

Will you have to contact your existing accountant? What happens to your financial records? Will you lose access to Xero? Will you have to explain years of business history to somebody new?

And suddenly, staying where you are feels easier.

It's one of the most common reasons business owners put off changing accountants.

The good news is that switching accountants in the UK is usually much more straightforward than people expect, particularly when your new accountant manages the professional handover.

Here's what actually happens.

Step 1: You have a conversation with a potential new accountant

The first step isn't resigning from your existing accountant.

It's having a conversation with somebody new.

This gives you an opportunity to explain how your business operates, what services you currently receive and why you're considering changing.

A prospective accountant should ask about your business structure, turnover, accounting software, tax requirements and the support you're looking for.

They should also explain how they work, what their services include and how much you can expect to pay.

You can have this conversation without notifying your existing accountant.

Nothing needs to change until you've decided you want to proceed.

Step 2: You agree the services and fees

Before moving, your new accountant should explain exactly what they'll be responsible for.

For example, you might need annual accounts, corporation tax returns, VAT submissions, payroll, bookkeeping or ongoing business advice.

You'll also want to understand whether there's any additional work required during the transition, such as catching up on overdue bookkeeping or reviewing previous filings.

Make sure you receive clear information about fees and any onboarding costs.

It's also worth checking your existing accountant's engagement letter for notice periods or outstanding charges.

This helps prevent unexpected costs or gaps in responsibility during the handover.

Step 3: Your new accountant contacts your existing accountant

This is the part many business owners worry about most.

They imagine having to make an uncomfortable phone call, explain why they're leaving and then chase their old accountant for documents.

In practice, your new accountant can normally manage much of the professional communication once you've authorised them to do so.

They will usually contact your existing accountant to request professional clearance and the information needed to take over your affairs.

Professional clearance is a standard process within the accounting profession. It allows the incoming accountant to ask whether there are any professional reasons they should not accept the appointment and to obtain relevant background information.

Your existing accountant may need your permission before sharing certain information.

You will still need to formally end your previous engagement in accordance with its terms, but you don't necessarily have to manage every aspect of the handover yourself.

Step 4: Your financial records are transferred

The new accountant will need enough information to understand your business and continue the work.

Depending on your circumstances, this might include previous annual accounts, tax returns, bookkeeping records, VAT information, payroll records and details of any outstanding HMRC matters.

If you're using cloud accounting software such as Xero, QuickBooks or Sage, your new accountant may be able to obtain appropriate access to the existing records.

The exact process depends on the software, the ownership of the subscription and the permissions currently in place.

You shouldn't automatically need to start your bookkeeping from scratch.

Where records are incomplete or held in an accountant-controlled system, additional work may be needed to establish what information is available and how it can be transferred.

Step 5: Your new accountant completes onboarding

Once the necessary information has been received, your new accountant can begin setting everything up.

This typically involves identity and anti-money-laundering checks, engagement documents, reviewing your existing records and arranging the relevant HMRC authorisations.

They may also review upcoming deadlines and identify anything that needs immediate attention.

For example, if your VAT return is due shortly or your company accounts are approaching their filing deadline, the two firms may need to agree who will complete that work.

This is one reason it's helpful to plan the transition rather than leaving it until the last minute.

Step 6: You continue running your business

For most business owners, the aim is a straightforward transition that allows them to carry on with their day-to-day work.

You may need to provide identification, sign documents, grant software access or answer some questions.

But much of the technical and administrative handover can be handled by the accountants themselves.

The amount of work involved will depend on how organised your existing records are and whether there are any outstanding issues.

How long does it take to change accountants?

There isn't one fixed timescale.

A straightforward transition with complete records and a responsive outgoing accountant may progress relatively quickly.

A more complicated situation involving missing information, overdue filings or disagreements over fees can take longer.

It's also worth distinguishing between formally appointing a new accountant and completing the full transfer of historical information.

Your new accountant may be able to begin certain work while waiting for outstanding records, provided they have enough information and the appropriate authorisations.

The important thing is to establish upcoming deadlines and agree who is responsible for each task.

Can you change accountants in the middle of the tax year?

Yes.

You don't normally have to wait until the end of the tax year or your company's financial year to appoint a new accountant.

In fact, waiting can sometimes mean spending several more months in a relationship that isn't working.

However, changing close to a filing deadline can make the handover more complicated.

If you're approaching a corporation tax, VAT or annual accounts deadline, speak to your prospective accountant about the timing before ending your existing arrangement.

They can help you decide on a sensible transition plan.

What if your old accountant makes things difficult?

Occasionally, a handover doesn't go as smoothly as expected.

Your previous accountant might be slow responding, there could be outstanding fees or some records may be missing.

That doesn't necessarily mean you can't change accountants.

The incoming firm can follow up on the information required, help you identify which records you already hold and explain what alternatives may be available.

There are professional rules around handling client information, although the position depends on the type of records, the accountant's professional membership and the terms of the engagement.

If you're worried about an accountant refusing to release your records, we've covered that separately in our guide: What Happens If My Accountant Refuses to Give Me My Files?

Is it better to stay with an accountant you know?

Familiarity can be reassuring.

Your existing accountant already knows your history, has access to your records and understands at least some of the way your business operates.

But familiarity alone isn't necessarily a reason to stay.

If you're not receiving the service you need, it's worth comparing the temporary inconvenience of changing with the ongoing frustration of staying.

A well-managed transition should leave you with a clear understanding of who's responsible for your accounts, how your records are being handled and what happens next.

Changing accountants in Dartford and the surrounding area

At Blue Rocket Accounting, we understand that the thought of changing accountants can feel more complicated than the process itself.

If you're based in Dartford, Bexley, Sidcup, Greenhithe or surrounding areas and you're considering a change, we can explain what's involved and discuss how the handover would work for your business.

You don't need to have everything organised before making an enquiry.

Speak to Blue Rocket Accounting about your current situation and find out what changing accountants could involve.

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You might also find these helpful...

How to Change Accountants | Blue Rocket Accounting

What Happens If My Accountant Refuses to Give Me My Files?

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