Many business owners stay with an accountant they have outgrown simply because switching feels daunting. In practice it is usually straightforward, and a good new firm does most of the work. This guide explains how it works and what to ask.
Signs it might be time to move
Changing accountants is worth considering when:
- Communication has become slow, or you struggle to get answers
- Work is regularly late, or deadlines feel like a scramble
- You only ever hear about compliance, never advice or planning
- Fees keep rising without a clear reason, or you are surprised by extra charges
- The firm does not support the software or way of working you want
- Your business has grown and your needs have moved beyond what they offer
None of these on its own is a crisis, but together they suggest you are not getting full value.
How switching actually works
The process is more routine than most people expect, and the outgoing firm is professionally expected to cooperate. In outline:
- Choose your new accountant and agree the scope and fee.
- Sign a new engagement letter with them.
- Notify your existing accountant that you are moving. A short, polite message is enough.
- Professional clearance takes place (see below).
- Authorisation is updated so the new firm can act for you with HMRC.
- Handover completes and your new accountant picks up the work.
You do not need to have a difficult conversation or justify your decision. You are entitled to change advisers.
What is professional clearance?
Professional clearance (sometimes called a “handover” or “clearance letter”) is the standard courtesy between firms regulated by professional bodies. Your new accountant writes to the outgoing one to:
- Ask whether there is any professional reason they should not act for you
- Request the information and records needed to continue your affairs, for example prior accounts, tax computations and working papers
The outgoing firm is expected to respond and pass over the relevant records. It is good practice to settle any outstanding fees with them, as that keeps the handover smooth. Note that some documents belong to you and some are the firm’s own working papers; a reputable firm will provide what is reasonably needed regardless.
Questions to ask a prospective new firm
Before you commit, ask:
- Who will be my main point of contact, and how quickly do you respond?
- Exactly what is included in the fee, and what would cost extra?
- Which accounting software do you support?
- How much experience do you have with businesses like mine?
- How will you handle the switch and clearance, and what do you need from me?
- Will you review my previous returns in case anything needs correcting?
- What professional body regulates you, and are you insured?
- How do you handle deadlines and remind me what is due?
The answers tell you not just about competence but about whether the relationship will feel like an upgrade.
Timing your move
You can change accountants at any time, but some points are easier than others. Moving shortly after a year end or filing, rather than in the middle of a complex piece of work, tends to make the handover cleaner. That said, do not stay somewhere unsuitable just to wait for a “perfect” moment. A good new firm will manage the timing with you.
How we can help
We handle the clearance and handover for new clients so switching is genuinely painless, and we will happily review your recent returns as part of taking you on. Learn more about our small business accountancy service, or request a quote to get started.