What Happens When I Change Accountants?
Switching accountants might seem like a daunting process, but in reality, it’s a fairly straightforward and routine part of business life. Many businesses change accountants over time — whether because of service issues, fees, communication breakdowns, or simply needing someone better suited to their current needs.
If you’re considering making the change, it’s natural to wonder what actually happens next. What’s involved? Who does what? And does it disrupt your business?
This article explains the typical steps in the process of changing accountants, what you can expect, and how it works in practice.
Is Changing Accountants Complicated?
In most cases, no — it’s not complicated. Accountants are professionals who handle client handovers regularly. It’s a standard process governed by professional protocols and ethics.
The majority of the work is handled between your new and old accountant. As the client, your role is mainly to confirm the switch, sign any necessary authority forms, and settle outstanding fees with your previous accountant.
The Steps Involved in Changing Accountants
1. Notify Your Current Accountant
The first step is to let your current accountant know you’re leaving. This is usually done via a simple email or letter.
There’s no need for lengthy explanations unless you wish to provide one. A typical message politely thanks them for their work and informs them you’ve appointed a new accountant who will be in touch for the handover.
2. Check the Notice Period
Review your engagement letter or service agreement with your current accountant. Some agreements require a formal notice period (often 30 days), while others are on a rolling basis with no notice requirement.
If a notice period applies, you’ll need to respect it before the official handover happens.
3. Professional Clearance Letter
Your new accountant sends a professional clearance letter to your outgoing accountant. This is standard practice in the accounting profession.
The letter typically asks:
Whether there’s any reason (ethical, legal, or professional) why the new accountant shouldn’t take on the client.
For the transfer of relevant financial information and records needed to continue providing services.
4. Transfer of Records
Your previous accountant will then provide your new accountant with all the necessary documents, such as:
Prior year accounts and tax returns
Bookkeeping records
Payroll information
VAT records
Any other relevant financial data
This ensures your new accountant has the full history they need to continue managing your accounts smoothly.
5. Authority Forms Signed
You will be asked to sign new authority forms — for example, a 64-8 form in the UK — which allow your new accountant to speak to HMRC or relevant tax bodies on your behalf.
At the same time, your old accountant’s authority with HMRC is usually removed.
6. Outstanding Fees and Final Invoices
If there are any unpaid fees with your previous accountant, these will generally need to be settled before the full handover is completed.
Accountants are entitled to withhold certain non-statutory records until payment is made, though they must still provide essential documents like tax filings.
7. New Accountant Onboarding You
Your new accountant will then go through an onboarding process with you, which typically includes:
Completing anti-money laundering (AML) checks — verifying your ID and address.
Getting access to your accounting systems (like Xero, QuickBooks, etc.).
Discussing your business, goals, and any current tax or compliance deadlines.
Setting up workflows for services like payroll, VAT returns, and year-end accounts.
Does It Disrupt My Business?
Generally, no. Changing accountants is designed to be smooth and without disruption to your daily business operations.
The key is timing — it’s best to avoid switching right before urgent deadlines unless there’s an urgent need. Most accountants will coordinate to ensure there’s no gap in service.
Common Concerns (And the Reality)
“Will my old accountant be upset?”
Unlikely. It’s a normal part of business. Professional accountants understand that clients move on for various reasons.“Will they withhold my records?”
Only if there are unpaid fees — and even then, only non-statutory records. They must still provide documents like tax filings and financial statements.“Is there a risk something gets missed?”
As long as the handover is managed properly, with clear communication, there should be no risk of anything falling through the cracks.“Can I change mid-year?”
Yes. You don’t have to wait until year-end or the start of a new tax year. While some moments are administratively cleaner (like after year-end filings), you can change at any time.
How Long Does It Take?
The process of changing accountants typically takes between one and four weeks, depending on:
How quickly your previous accountant responds.
Whether there are outstanding fees or unresolved work.
The complexity of your business setup.
In straightforward cases, the handover can be completed in just a week or two.
What Is My Responsibility During the Change?
Your tasks as the client are fairly minimal. Typically, you will:
Notify your old accountant.
Check and observe any notice period.
Sign authority forms for the new accountant.
Pay any outstanding fees to the old accountant.
Provide any personal identification needed for AML checks.
Most of the technical work happens behind the scenes between the accountants.
Will My Tax Filings or Deadlines Be Affected?
As long as you communicate clearly and time the switch sensibly, your tax filings won’t be affected.
If a tax deadline is close — for example, a VAT return or payroll run — discuss with both accountants who will handle it. This avoids confusion about whether it falls to the outgoing or incoming accountant.
