Can My Accountant Stop Working With Me?

It’s a relationship built on trust, numbers, and deadlines. You rely on your accountant to keep your financial affairs in order, handle tax obligations, and support your business behind the scenes. But is the relationship entirely in your hands? Or can your accountant decide to stop working with you?

The short answer is yes — accountants can choose to terminate the working relationship, just as clients can. Like any professional relationship, it’s governed by agreements, expectations, and professional boundaries.

So, why might an accountant decide to part ways with a client? How does the process work? And what happens next?

Why Would an Accountant End the Relationship?

There are a range of reasons an accountant might choose to stop working with a client. These reasons can be practical, professional, or ethical. Some are common and straightforward, while others are more serious.

1. Non-Payment or Late Payment of Fees

One of the most common reasons is persistent late payment or non-payment. Like any business, accountants expect to be paid for their time and expertise. If chasing invoices becomes a regular task, they may choose to step away.

2. Breakdown in Communication

A relationship that relies on clear and timely communication can quickly become strained if messages, requests for information, or queries are repeatedly ignored or delayed.

3. Consistently Poor Record-Keeping

If a client continually provides messy, incomplete, or inaccurate financial records that require excessive time to untangle, the accountant may decide the work is no longer viable or efficient.

4. Client Behaviour

Rude, aggressive, or disrespectful behaviour toward the accountant or their staff is a valid reason to terminate the relationship. Mutual respect is a basic expectation in any professional service.

5. Scope Creep Without Agreement

If the client regularly asks for work beyond what was agreed—without discussing changes to fees or scope—it can strain the relationship. Eventually, the accountant may decide it’s not sustainable.

6. Ethical Concerns

This is a significant one. If an accountant suspects a client is engaging in illegal activities such as tax evasion, fraudulent record-keeping, or money laundering—or even if a client refuses to follow professional advice regarding compliance—the accountant may be obligated to disengage.

7. Conflict of Interest

If a conflict of interest arises—such as the accountant also working with a competing business—they may need to step back to maintain professional integrity.

8. Business Changes

Sometimes the decision is simply practical. The accountancy firm may restructure, stop offering certain services, focus on different client types, or reduce their client list to manage workload.

Are There Rules About How an Accountant Can Disengage?

Yes. While an accountant can stop working with a client, it must be handled properly, especially if the accountant is part of a professional body such as ACCA, ICAEW, or CIMA. These organisations have codes of conduct that require professionalism and fairness.

What’s Usually Required:

• Notice Period: The engagement letter often specifies how much notice either party must give when ending the relationship.

• Formal Disengagement Letter: A written confirmation is generally sent, setting out the intention to terminate services and confirming the end date.

• Handover of Records: The accountant is required to return any client-owned documents, records, and files (subject to payment of any outstanding fees).

• Professional Courtesy: If the client moves to another accountant, the outgoing accountant typically responds to a professional clearance letter from the new one.

What Happens to My Financial Records?

Even if the relationship ends, you are entitled to your financial records and any documents that belong to you. The accountant cannot withhold your original paperwork but may retain their own working papers, which are documents created for their internal use.

If there are unpaid fees, some accountants may have a lien over your records (depending on jurisdiction), but this generally doesn’t extend to statutory records required for compliance.

Will HMRC or Companies House Be Notified?

No, there’s no obligation for the accountant to inform HMRC, Companies House, or any other authority simply because they’ve stopped acting for you.

However, if they were your appointed agent (authorised to act on your behalf), they will deregister themselves from that role with HMRC. You will remain responsible for meeting your obligations.

How Can You Avoid This Situation?

While not every scenario is avoidable, many breakdowns in the accountant-client relationship come down to communication and expectations.

• Keep your records organised.

• Respond promptly to requests.

• Pay fees on time.

• Be upfront if there’s an issue.

• Discuss changes to the scope of work before assuming they’re included.

A respectful, professional approach on both sides goes a long way toward maintaining a healthy working relationship.

What Should You Do If Your Accountant Terminates the Relationship?

1. Request a Written Explanation (if it hasn’t already been provided).

2. Ensure You Have All Your Records.

3. Ask for Clarification on Outstanding Deadlines (e.g., VAT returns, tax filings).

4. Find a New Accountant Promptly to avoid disruption, especially if deadlines are approaching.

5. Check Whether HMRC Authorisations Need Updating.

Most accountants will complete any work already paid for and ensure a clean handover if possible.

Is This Common?

It’s not something that happens regularly, but it does happen. Accountants are businesses too, and occasionally a client-accountant relationship no longer works for one party or the other. Usually, it’s a last resort after trying to resolve issues.

Summary

Yes, your accountant can stop working with you—but not arbitrarily and not without following proper procedures. Whether due to payment issues, poor communication, ethical concerns, or a natural shift in business priorities, the right to end the relationship goes both ways.

Handled properly, ending an engagement should be a professional, straightforward process. And while it can be inconvenient, it also offers an opportunity to reassess what you need from your accountant moving forward.