Do I Need to Give Notice to My Accountant?

Changing accountants is a normal part of running a business. Whether it’s due to service quality, fees, communication, or simply finding a better fit, most businesses will switch accountants at some point. But one common question that comes up is: Do I need to give notice to my current accountant?

The simple answer is — it depends on your agreement with them. While there’s no formal law requiring notice, professional agreements and good manners usually mean some form of notification is expected. This blog explains how notice works when leaving an accountant, what to check, and how the process typically unfolds.

Is Notice Legally Required?

There is no legal requirement that says you must give notice when leaving your accountant. However, most accountants operate under engagement letters or service agreements. These documents set out the terms of your working relationship — including notice periods, termination terms, and responsibilities.

In most cases, a reasonable notice period is expected, but it’s usually not a lengthy one. Commonly, it’s 30 days, but it can vary.

If your engagement letter doesn’t specify a notice period, then technically, you can terminate the relationship immediately. Still, providing reasonable notice is considered best practice.

What Should You Check First?

Before giving notice, check the following:

• Your engagement letter or contract. Look for a section on termination. This will explain whether you are required to give notice and how long it should be.

• Billing arrangements. Understand whether you’re on a monthly retainer, a fixed fee, or ad hoc billing. This affects whether there are outstanding invoices or payments due.

• Any ongoing work. Check whether there’s unfinished business—such as tax returns, VAT submissions, payroll, or year-end accounts. Decide whether your current accountant should finish it or whether you’ll hand it over to your new accountant.

How Long Is Notice Typically?

• 30 Days: This is the most common notice period written into engagement letters. It gives both parties time to wrap things up professionally.

• Immediate: Some agreements allow immediate termination, especially if fees are up-to-date and there’s no unfinished work.

• Longer Notice: Rare, but occasionally firms with more complex service agreements might request longer notice—typically only for larger or more involved clients.

Even if not contractually required, giving two to four weeks’ notice is generally seen as courteous and practical.

What Happens After Giving Notice?

Once you notify your accountant that you’re leaving, here’s what typically happens:

1. Acknowledgment: Your accountant confirms receipt of your notice.

2. Final Invoices: They may issue any final invoices for services completed up to the termination date.

3. Handover: Your new accountant sends a professional clearance letter requesting your financial records.

4. Transfer of Records: Your current accountant forwards relevant documents, including prior year accounts, tax returns, bookkeeping data, and payroll information.

5. Removal of Authority: Your current accountant is removed from authority with tax bodies (like HMRC), and your new accountant takes over.

What If I Don’t Give Notice?

If your engagement letter requires notice and you don’t provide it, the accountant could technically charge fees for the notice period. However, disputes are rare when clients communicate clearly and settle outstanding bills.

If no notice period is written into your contract, then leaving immediately is entirely your right. Even so, it’s considered good practice to inform your accountant formally, rather than simply disappearing.

Outstanding Work and Deadlines

One important thing to consider is whether there are any upcoming tax deadlines or filings due.

• If deadlines are close: It may make sense to let your current accountant finish the job before switching. This avoids confusion over who is responsible for submissions.

• If switching mid-period: Make sure both accountants agree on who is handling what, so nothing gets missed.

Will My Accountant Be Difficult About It?

Most accountants handle client departures professionally. They are bound by ethical guidelines to cooperate in handing over records, assuming fees are paid and there are no serious disputes.

It’s highly unusual for accountants to cause problems purely because a client is leaving. Professional bodies such as ACCA, ICAEW, and others require accountants to act respectfully and ethically during handovers.

What If There Are Unpaid Fees?

If there are unpaid invoices, your accountant may hold onto certain documents until payment is made. However, they cannot withhold statutory records like tax filings, VAT returns, or financial statements.

Generally, paying any outstanding fees quickly ensures the smoothest transition.

Simple Steps to Giving Notice

1. Check your engagement letter for notice terms.

2. Send a formal email or letter informing them of your decision to end the relationship.

3. Request a handover to your new accountant.

4. Settle any final invoices.

5. Confirm the end date for their responsibility over filings or tax work.