Change accountants: when should you change your accountants?

If your business is growing and has changed direction and your accountants have failed to provide you expert financial advice and value, high level of support, not providing a positive working relationship that your business needs and your current accountants are not understanding and fulfilling your business accounting needs you are paying for or fail to provide adequate accounting services that benefit your growing business, changing your accountants would be the best option.

Moreover, if your accountants are not responding to your phone calls, emails, take a lot of time to get back to you, take more time to prepare your accounts or not filing your tax returns on time, charging you more or unexpected fees, is not helping you with better tax planning for tax saving, has not adequate financial knowledge and does not have the ability to work on new technology or cloud accounting, this also leads to change accountants.

Before the switch to a new accountant make sure that whether it is a suitable time to change accountants, your existing accountant has completed your financial year-end accounts and your tax returns and you paid all the bills or fees of your existing accountant to prevent yourself from any future dispute over unpaid fees. If your existing accountant has any outstanding work, you can ask your accountant that you will get this work done by your new accountant to avoid paying an unexpected bill to your existing accountant in case a new accountant agrees to do this work charging no extra cost.

How do I change accountants?

Is it easy to change my accountants?

The process to change accountants is a fairly easy process and involves the following steps. If you follow these steps, you will not incur any painful and complicated experience during the process of change accountants.

Step 1:

Hiring a new accountant or change accountants: How do you know if your accountant is good?

What questions should I ask an accountant?

First, you need to do a search to hire a new accountant. There are a wide variety of accountants who have their own experience, specialties, and methods.

You need to consider some points and look at the qualities that accountant need to have before change accountants or switch to new accountant that whether a new accountant;

  • Is a qualified and Registered Chartered Certified Accountant.
  • Has the ability and knowledge to prepare financial statements including three keys financial statements of the balance sheet, profit and loss, and cash flows.
  • Can analyze your business financially and keep you informed by explaining your financial statements to you where your business is financially and what changes you need to make.
  • Can prepare accounting reports for planning and decision making.
  • Understand your business accounting needs or has experience of doing similar jobs before and can support your business industry by offering you service that you are looking for.
  • a new accountant stays up-to-date with changes in tax codes and tax laws or can understand the requirements of the latest tax codes or laws and can maximize your tax savings by better tax planning.
  • Can comply or work with accounting software’s i.e., cloud computing, Xero, Free agent, Quick books online, etc.
  • Your new accountant is offering an accounting package that your business needs and charging you fee within your budget.
  • Response to your calls and emails quickly and on time when you have a question and need expert advice on your business.
  • Close to your location and easily accessible for you.

In addition, if your new accountant has expertise in finances, taxes can understand your business, provide you expert financial advice and help you with better tax planning, it is the time to change accountants.

Step 2: Informing an existing accountant or how do I write a letter to change my accountant:

What to request when changing accountant?

If you have found the right accountant for your business, it is time to inform your existing accountant about your decision. You can do it by either on a phone call, in person, by sending an email, or by sending a termination letter mentioning that you are going to leaving accountant who is the best fit for your business and requesting him/her to hand over all the required information or paperwork needed to a new accountant. It would be sound good if you in person inform your existing accountant about your decision instead of by a new accountant.

Moreover, it would be best to keep as much information ready through emails and hard copies you have filed relating to your accounts, loans if you have applied for, your bank and financial statements, and receipts and invoices of any purchase, accounting software’s during the first meeting with a new accountant to make the process of change accountants smoother and quicker.

Step 3: Professional clearance letter:

Your new accountant will issue a professional clearance letter to the existing accountant asking any nonpayment or other issues and requesting to transfer all your accounts and tax returns relevant documents and copy of all important records of the previous year to a new accountant.

Step 4: Disengagement letter:

Your existing accountant will provide you a disagreement letter or professional document that has the details of all completed work, key dates, and other information.

Step 5: Registering/approving a new accountant with HMRC and signing 64-B form:

In this step, by signing a form 64-8 form you will assign authority to your new accountant to file your personal and company tax returns to HMRC and handle all your tax affairs on your behalf.

Step 6: Engagement letter:

Your new accountant if registered with a professional entity is entitled to send you an engagement letter enclosing the details of requirements and expectations between you and a new accountant or details of the services and responsibilities of a new accountant and your responsibilities. You have to sign this letter with your new accountant to form the contract between both of you.

Step 7: Registering with a new accountant:

You will receive a registration form from your new accountant to complete your registration with a new accountant by providing your personal and company information.

You have to provide personal and company information depending upon your ID criteria including your passport, driving license, recent utility bills, date of birth, UTR tax code, UTR tax reference, national insurance number, company number, Companies house authentication code to complete your anti-money laundering checks on that will be carried out by new accountant.

How do I find a good accountant near me?

If you want to make your process of changing accountant as simple, you can do it by getting the accounting and taxation services of our expert and qualified team of chartered accountants at Berkshire accountants Limited who have years of experience in professional accounting to work with businesses of different industries and with individuals. You can contact us to fulfill your growing business accounting needs, to get any expert financial advice on business and individual level, and to keep your paperwork up-to-date and submitted on time.