Can I move from a large firm to a smaller one?
Can I Move from a Large Firm to a Smaller One?
Many businesses and individuals start their journey with large accounting firms. These firms offer a broad range of services, multiple departments, and sometimes, the reassurance of big brand names. However, it’s not uncommon for clients to consider switching from a large firm to a smaller, independent accountant.
The simple answer is yes, you absolutely can move from a large firm to a smaller one. There’s no barrier stopping you from doing so, and the process is usually straightforward.
But why do people make this move? What changes? And what should you expect?
Why Move from a Large Firm to a Smaller One?
There are several reasons why clients consider switching to a smaller accountancy firm.
1. Personal Service
Large firms often have multiple layers — partners, managers, juniors — which can mean you rarely deal with the same person twice. Smaller firms usually offer more personal relationships, with direct access to the accountant handling your affairs.
2. Consistency
In a large firm, staff turnover or shifting responsibilities between teams can be common. Smaller firms tend to provide more consistency in who looks after you over the long term.
3. Tailored Advice
Smaller accountants often specialise in specific types of clients, such as small businesses, sole traders, or owner-managed companies. Their advice can be more tailored because they truly understand businesses of your size and type.
4. Responsiveness
Without large hierarchies, smaller firms can sometimes respond more quickly. You may find queries are dealt with faster and issues resolved without passing through multiple departments.
5. Cost Efficiency
Larger firms often have higher overheads, which can be reflected in their fees. Smaller practices may offer competitive pricing, often with a more transparent fee structure.
Are There Downsides?
Like any decision, it depends on your needs.
Complex Needs: If your affairs involve international tax, complex mergers, or require specialised legal-structuring advice, larger firms might offer specialist departments not available in smaller practices.
Perception: Some businesses feel that working with a large firm gives their company a certain image, especially in industries where this carries weight.
Capacity: Very high-volume or enterprise-level clients might require resources that some small firms don’t have.
For the vast majority of small businesses, startups, and individuals, however, a smaller firm is perfectly capable — and often preferable.
Is the Process to Move Complicated?
Not at all. The process of moving from a large firm to a smaller one is the same as moving between any accountants.
The basic steps are:
Sign up with the new accountant. Complete their onboarding checks, ID verification, and engagement letter.
Notify your current firm in writing that you are moving. A simple, polite email is sufficient.
Professional clearance: Your new accountant will write to the old firm requesting professional clearance and the transfer of relevant records.
Transfer of information: The outgoing firm passes over your accounts, tax records, and any necessary data.
New accountant takes over. They register as your agent with HMRC and take on all ongoing work.
The process is standard, well-understood in the industry, and doesn’t require you to get heavily involved beyond providing consent and any records you personally hold.
Will I Lose Any Data?
No. Your financial data, records, and statutory filings don’t disappear when you switch. The large firm transfers the required records to the smaller firm, including:
Year-end accounts
Tax returns
VAT filings
Payroll information
Trial balances and reports
Additionally, if you use cloud accounting software, your data remains yours. You simply remove the old firm’s user access and grant it to your new accountant.
Does HMRC Need to Know?
Not directly from you. HMRC doesn’t require notification that you’ve changed accountants. Your new accountant will submit agent authorisations with HMRC to act on your behalf for taxes, VAT, payroll, and more. The old authorisation with the previous firm will lapse when they remove themselves or are replaced.
Does Changing Firm Affect Deadlines?
Not if the handover is handled promptly. Deadlines for tax returns, VAT, and payroll continue to apply, regardless of whether you’re mid-switch.
It’s important to agree with both firms who is responsible for any upcoming deadlines during the handover period. Typically, your new accountant picks up responsibility as soon as onboarding is complete.
What About Fees?
Check your engagement letter with the large firm. Some firms require a notice period; others are fine with immediate termination. You’ll generally need to settle any outstanding invoices for work already completed.
It’s rare for firms to charge a specific "exit fee," but if work is in progress — such as a tax return or year-end accounts — you may be billed for what has already been done.
Are Smaller Firms Less Qualified?
Not at all. Most small accountancy firms are run by highly qualified professionals — often chartered accountants (ACA, ACCA, or similar) with years of experience, sometimes gained at larger firms earlier in their careers.
The difference isn’t in qualifications but in scale and approach. Many clients find that smaller firms deliver the same — or better — expertise with the added benefit of personal service.
Final Thought
Moving from a large accounting firm to a smaller one is entirely possible and often brings significant benefits, particularly for small and medium businesses or individuals seeking a more personal, consistent service.
The process is simple, the transition can be smooth, and there’s no impact on your financial records or obligations — provided the handover is handled clearly and professionally.
