How do I avoid disruption when changing accountants?
Changing accountants can feel like a big step, especially when your finances, tax deadlines, and reporting are involved. Understandably, one of the biggest concerns for businesses is whether the switch will cause disruption.
The good news is that changing accountants doesn’t have to be disruptive. With good communication and a clear process, it can be smooth and straightforward.
Here’s how to avoid disruption when making the move.
1. Choose the Right Time to Switch
While you can change accountants at any time, certain points in the year are naturally easier. Consider switching:
After your year-end accounts are completed.
After a VAT quarter has ended.
Before the next major tax deadline approaches.
This reduces the risk of overlapping responsibilities between the old and new accountant. That said, if the service isn’t working, it’s better to switch sooner than suffer poor support.
2. Confirm Who Handles Upcoming Deadlines
One of the most common causes of disruption is confusion over who is responsible for pending tasks.
When switching, confirm:
Is the outgoing accountant completing the current tax return, VAT filing, or accounts?
Or is the new accountant taking over immediately?
Get this agreement in writing. It avoids missed deadlines, penalties, or duplicated work.
3. Communicate Clearly With Both Accountants
A smooth handover depends on clear communication.
Notify your current accountant in writing that you’re moving on.
Inform your new accountant about any ongoing tasks, deadlines, or concerns.
This ensures everyone knows their role during the transition period.
4. Ensure Records Are Transferred Promptly
Your outgoing accountant is professionally obligated to provide your financial records. This typically includes:
Year-end accounts
Tax returns
Payroll records
VAT reports
Trial balances
If you use cloud accounting software, transferring is even easier — you simply change user access.
Prompt transfer avoids delays in bookkeeping, tax preparation, or payroll.
5. Settle Any Outstanding Fees
If you owe your old accountant money for work completed or work in progress, this can slow down the handover.
Check your engagement letter for any terms about fees, notice periods, or final invoicing. Settling accounts quickly keeps things smooth.
6. Work With a Prepared New Accountant
A good accountant will manage most of the transition for you. They will:
Contact the previous accountant for professional clearance.
Manage HMRC agent authorisations.
Check whether any deadlines are imminent.
Review transferred data for accuracy.
This minimises disruption on your end.
7. Review Bookkeeping Access and Software
If your previous accountant managed your cloud accounting software subscription, check whether the account is in your name or theirs.
If it’s in your name, simply revoke their access and invite your new accountant.
If it’s in their name, request a transfer of ownership or set up a new subscription with your data imported.
This ensures no gap in access to your financial records.
8. Don’t Worry About HMRC — They Don’t Mind
Switching accountants has no impact on your tax standing with HMRC. The only change is that the new accountant submits authorisation to act on your behalf.
As long as your returns are submitted on time, HMRC doesn’t care who your accountant is.
9. Ask for a Handover Checklist
Your new accountant may provide a checklist of items they need, such as:
Copies of previous tax returns
Payroll data
VAT reports
Access to accounting software
Bank statements or reconciliations
Providing this quickly means they can get started without delay.
10. Keep an Eye on the First Few Months
Even with the smoothest handover, it’s wise to check that everything is working correctly.
Confirm HMRC recognises the new accountant as your agent.
Double-check that VAT returns, payroll, and tax filings are submitted as expected.
Review reports or bookkeeping to ensure accuracy.
It’s simply part of staying informed during a period of change.
Will There Be Any Downtime?
Typically, no. As long as the handover is handled correctly, your bookkeeping, payroll, VAT filings, and tax preparation continue without interruption.
Cloud-based systems make this even easier, as your financial data stays with you rather than the accountant.
Summary Tips to Avoid Disruption
• Choose a logical point to switch if possible.
• Agree clearly who handles upcoming deadlines.
• Communicate openly with both old and new accountants.
• Ensure records are transferred quickly.
• Settle any outstanding fees to avoid delays.
• Check access to bookkeeping software.
• Let the new accountant handle HMRC authorisations.
• Stay informed during the first few months to ensure everything runs smoothly.
The Bottom Line
Changing accountants doesn’t need to be stressful or disruptive. It’s a common, well-established process in the industry. As long as the handover is managed with clear communication and good organisation, your business continues as usual — without missed deadlines, lost data, or financial confusion.
