Can My New Accountant Contact My Old One?
If you’ve decided to change accountants, you might be wondering how the handover works. Do you have to collect all your financial records and hand them over yourself? Or can your new accountant deal directly with your old one?
The simple answer is yes — your new accountant can (and usually will) contact your old accountant as part of the standard handover process. This is a routine step in the accounting profession, handled through something known as a professional clearance letter.
This article explains how this works, what’s involved, and what both accountants do during the transition.
Is It Normal for Accountants to Contact Each Other?
Yes, it’s completely standard practice. Accountants regularly deal with client transitions and are expected to communicate with each other to ensure a smooth handover of records.
This isn’t just a courtesy — it’s considered good professional conduct. Many accounting bodies, such as ACCA or ICAEW in the UK, have guidelines requiring outgoing accountants to cooperate in providing the necessary information, provided there are no ethical or legal concerns and the client’s fees are paid.
How the Process Works
1. You Notify Your Old Accountant
The first step is for you, the client, to inform your current accountant that you are moving to a new firm. This is usually done by email or letter. Once your old accountant knows, the process of transferring records can begin.
2. Professional Clearance Letter
Your new accountant will then send a professional clearance letter to your old accountant. This letter serves several purposes:
It formally notifies the old accountant that they’ve been asked to take over the client.
It asks whether there are any professional reasons why the new accountant should not accept the client (such as issues involving fraud or unpaid tax).
It requests the transfer of financial records, prior accounts, tax filings, payroll information, VAT details, and any other relevant documents.
3. Your Permission Is Required
Accountants cannot share your private financial information without your permission. As part of the onboarding process with your new accountant, you’ll typically sign a form or provide written confirmation authorising them to request your records from your old accountant.
Once that permission is in place, the two firms can communicate directly about your accounts.
What Information Is Shared?
Your old accountant will typically pass on:
Copies of previous years’ financial statements
Corporation tax returns or self-assessments
VAT returns and records
Payroll information
Management accounts, if applicable
Bookkeeping records (if they handled your bookkeeping)
Any other relevant financial data necessary to continue your accounting services
This ensures that your new accountant has all the historical information needed to manage your accounts properly going forward.
Will My Old Accountant Cooperate?
In almost all cases, yes. Accountants are professionally obligated to cooperate with reasonable requests for information, provided that:
You, as the client, have given permission.
There are no outstanding unpaid fees or disputes.
If you owe fees to your old accountant, they may have the right to withhold certain non-statutory records (like internal working papers). However, they cannot withhold essential documents like tax returns, VAT filings, or statutory financial statements.
What Happens If There’s an Issue?
In rare cases, problems can arise, such as:
Delays: Your old accountant may be slow in responding.
Disputes: If there are unpaid bills or unresolved issues, the handover can be delayed until these are settled.
Refusals: Very rare, but possible if there are serious ethical concerns.
If delays occur, your new accountant will usually follow up directly. As a client, you may need to step in and prompt your old accountant, particularly if payments are overdue.
How Long Does the Process Take?
The time frame can vary depending on how quickly your old accountant responds. Typically, the clearance process and transfer of records can take anywhere from a few days to two weeks.
In straightforward cases where there are no outstanding issues, it’s often completed within a week.
Do I Have to Be Involved?
Once you’ve given permission, most of the process happens between the two accountants.
Your involvement is usually limited to:
Notifying your old accountant that you are leaving.
Signing authority for your new accountant to request your records.
Settling any final invoices with your old accountant if needed.
From there, the accountants handle the exchange of information directly.
What About HMRC (or Other Tax Authorities)?
Alongside communicating with your old accountant, your new accountant will also update HMRC (or the relevant tax body in your country) to let them know they are now acting on your behalf.
This is done by submitting an authorisation form — for example, a 64-8 form in the UK — which allows them to speak to HMRC about your tax matters. Once processed, your old accountant’s authority is usually removed automatically.
What If I Used Cloud Accounting Software?
If you’re using cloud-based accounting software like Xero, QuickBooks, or Sage, the handover is often even simpler.
Your new accountant will request access to your account.
You may need to change permissions or transfer the subscription.
Historical financial data is already in the cloud, reducing the need for document transfers.
Even with cloud software, though, your old accountant may still hold records like prior-year tax computations, payroll data, or documents that weren’t stored in the software itself.
Is It an Awkward Process?
It’s usually very straightforward and handled professionally. Accountants are used to clients moving on. As long as the communication is polite and clear — and fees are up to date — the handover is typically smooth.
The process is designed to minimise disruption to your business.
