Is It Worth Switching Accountants? 7 Signs You’ll Be Better Off Moving
You've already got somebody looking after your accounts, they know your business (at least, you hope they do), and the thought of finding someone new, transferring records and explaining everything again can feel like an unnecessary headache.
So you stay where you are.
Even when emails go unanswered. Even when you're not entirely sure what you're paying for. Even when you have a nagging feeling that your accountant could be doing more to help your business.
But here's a question worth asking: is staying with the wrong accountant actually costing you more than changing to a better one?
For many small business owners, the answer is yes.
Here are seven signs that it might be time to consider a move.
1. You're always chasing your accountant for answers
You send an email asking a relatively straightforward question. A few days pass. You follow up. Eventually, you get a reply, but it doesn't really answer what you asked.
Sound familiar?
Your accountant doesn't need to be available every minute of the day, but you should be able to rely on reasonable response times and clear communication.
This is particularly important when you're making decisions about cash flow, tax, employing somebody or investing in your business.
If you're constantly chasing for information, you're spending valuable time managing a relationship that's supposed to make your life easier.
What good looks like: An accountant who communicates clearly, sets expectations around response times and makes you feel comfortable asking questions.
2. You only hear from them when something needs filing
For some businesses, an accountant who prepares annual accounts and tax returns is perfectly adequate.
But as your business develops, you may need more.
You might want to understand whether you can afford to recruit, how to improve profitability, what your tax position looks like before the year ends or whether you're taking money out of the business in the most appropriate way.
If your accountant only contacts you when a deadline approaches, you could be missing opportunities to make better financial decisions throughout the year.
A good accountant shouldn't necessarily be telling you how to run your business. They should, however, be helping you understand the financial implications of the decisions you're making.
3. You keep getting unexpected bills
Accountancy fees vary depending on the size of your business, the complexity of the work and the level of support you need.
There's nothing inherently wrong with paying extra for additional work.
The problem comes when you don't understand what's included in your agreement or you're regularly surprised by invoices.
Perhaps you assumed a conversation about your tax position was included, only to discover it was chargeable. Or you've been billed for work without having a clear discussion about the cost beforehand.
You should know what you're paying, what services you're receiving and when additional charges might apply.
Before changing accountants, ask your existing firm for a clear explanation of your current package. Sometimes the issue is a misunderstanding that can be resolved.
But if you consistently feel uncomfortable asking questions because you're worried about another bill, that relationship may not be working for you.
4. You're not confident your accounts are accurate
Everybody makes mistakes occasionally, including accountants.
What matters is how those mistakes are identified, explained and corrected.
If you've repeatedly spotted errors, received unexpected correspondence from HMRC or discovered that important information has been overlooked, it's reasonable to ask questions.
You shouldn't need to become an accounting expert to feel confident that your financial affairs are being handled properly.
Equally, not every unexpected tax bill means your accountant has made a mistake. Tax liabilities can change for perfectly legitimate reasons.
The important thing is whether your accountant can explain what's happened in language you understand and demonstrate how they're dealing with it.
If that confidence has disappeared, an independent review from another accountant may be worthwhile.
5. Your accountant doesn't understand your business
A growing marketing agency has different financial challenges from a construction company. A consultant working through a limited company has different requirements from a retailer managing stock, employees and VAT.
While the underlying accounting principles may be similar, the advice you need can be very different.
Your accountant should understand how your business operates, where your income comes from, what your main costs are and what you're trying to achieve.
If every conversation feels generic, or you're constantly explaining the same aspects of your business, you may benefit from working with somebody who takes a greater interest in what you do.
At Blue Rocket Accounting, we've seen how important this can be when working with businesses that need more than straightforward compliance support.
6. Your business has grown, but your accounting support hasn't
The accountant who was perfect when you first started trading might not be the right fit five years later.
Perhaps you've gone from working alone to employing a team. Maybe your turnover has increased, you're managing more complex VAT requirements or you need regular management accounts to understand your performance.
None of this means your original accountant has done anything wrong.
It simply means your requirements have changed.
A useful question is whether your accountant is helping you prepare for the next stage of your business or simply dealing with the transactions and obligations from the previous one.
If you're growing, you need financial information that helps you make decisions, not just accounts that tell you what happened last year.
7. You've stopped asking for advice because you don't think it's worth it
This is perhaps the biggest warning sign of all.
You have a question about employing somebody, buying equipment or making a significant business decision.
But rather than asking your accountant, you search Google, ask another business owner or try to work it out yourself.
Why?
Perhaps you don't expect a useful answer. Maybe you're worried about the cost. Or you simply don't feel that your accountant is particularly interested.
Your accountant should be somebody you feel comfortable speaking to about the financial side of your business.
If you've lost that confidence, it's worth considering whether the relationship is still providing what you need.
Is switching accountants actually worth the effort?
It depends on what you're unhappy about and what you want to achieve.
If your accountant generally does a good job but has been slow responding to a couple of emails, a conversation may be all that's needed.
If you're consistently experiencing poor communication, unclear fees, repeated mistakes or a lack of useful advice, changing accountants could make a significant difference.
Think about the value of having accurate financial information, confidence in your tax position and somebody you can approach when an important decision comes up.
Those benefits can be worth considerably more than the time involved in making a change.
What should you do before deciding?
Start by writing down what isn't working.
Is it communication? Cost? Lack of advice? Concerns about accuracy? Or have you simply outgrown the service you're receiving?
Then think about what you want from your next accountant.
You might need more regular contact, help understanding cash flow, better accounting software support or an accountant who understands your particular industry.
Once you're clear on those requirements, you can have a more meaningful conversation with potential replacements.
And remember, speaking to another accountant doesn't commit you to changing.
You can explore your options before making any decisions.
Thinking about changing accountants in Dartford, Bexley or Sidcup?
Blue Rocket Accounting works with businesses in Dartford and surrounding areas, including Bexley, Sidcup and other parts of Kent and South East London.
We understand that changing accountants can feel like a significant decision, particularly when you've worked with the same firm for years.
If you're wondering whether your current accountant is still the right fit, we're happy to have an initial conversation about what you need and whether we can help.
There's no need to make a decision before you've explored your options.
Thinking about changing accountants? Get in touch with Blue Rocket Accounting.
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