Will I lose any financial data if I switch accountants?
Switching accountants can feel like a big decision, especially when you think about all the financial data and records tied to your business. A common worry for many business owners is, “Will I lose any financial data if I change accountants?”
It’s a fair question. After all, your accountant holds years’ worth of tax returns, financial statements, payroll records, VAT returns, and bookkeeping information. The idea of losing any of that can feel daunting.
The reassuring answer is — no, you shouldn’t lose any essential financial data when you switch accountants. The process is designed to protect clients’ information and ensure a smooth transition between accounting firms. However, understanding exactly what gets transferred, what stays with your old accountant, and what your responsibilities are will help you manage the change with confidence.
Does My Financial Data Belong to Me?
Yes — the key financial data related to your business belongs to you. This includes tax returns, VAT filings, payroll records, accounts, and other documents prepared on your behalf.
Professional standards require accountants to provide this information when you switch to a new firm. They cannot simply withhold your financial records because you’ve decided to leave.
That said, there is a distinction between:
Client-owned documents — like tax filings, financial statements, and reports prepared for you.
Accountant’s own working papers — internal notes, calculations, and documents used to prepare your accounts.
Working papers generally remain the property of the accountant, unless specifically agreed otherwise. However, anything you need to continue running your business — tax records, payroll data, accounts — must be provided.
What Data Will Be Transferred?
When you switch accountants, your previous accountant is expected to provide all essential records needed for the continuation of services. This usually includes:
Prior year accounts and financial statements
Corporation tax returns or self-assessment tax returns
VAT returns and records
Payroll records (including year-to-date figures)
Management accounts (if prepared)
Bookkeeping data (if they handled your bookkeeping)
Any documentation required for tax compliance
Your new accountant will request this information formally through a professional clearance letter, sent to your old accountant once you’ve given permission to initiate the transfer.
What If I Use Cloud Accounting Software?
If your business uses cloud-based accounting software like Xero, QuickBooks, Sage, or FreeAgent, the risk of losing financial data is very low.
In cloud systems, the data generally belongs to you. The software holds your bookkeeping history, invoices, bills, bank feeds, and reports.
When switching accountants:
You simply change the user permissions to remove the old accountant’s access and grant it to the new one.
If the subscription was held in your accountant’s name (not uncommon), you may need to transfer ownership or set up a new subscription in your name.
Even with cloud systems, your accountant may still hold offline documents, tax computations, payroll reports, and prior submissions not stored within the software. These are included in the handover process.
Can My Old Accountant Refuse to Hand Over Data?
Accountants are bound by professional ethical guidelines, which require them to cooperate in the handover process — provided there are no legitimate barriers.
The most common barrier is unpaid fees. If you owe your old accountant money for completed work, they may be entitled to retain certain documents (usually their internal working papers) until payment is made. However, they cannot withhold statutory records such as:
Tax returns
VAT filings
Submitted payroll reports
Published financial statements
In other words, they cannot block you from accessing documents that are legally required for tax compliance or business operations.
Once any outstanding fees are settled, the expectation is that they will hand over the full package of client-owned documents to your new accountant.
What If My Old Accountant Is Slow or Uncooperative?
Delays sometimes happen, usually due to backlogs, admin delays, or—occasionally—if the relationship ended on bad terms. If an accountant is slow to release records:
Your new accountant will usually follow up on your behalf.
You can also contact them directly to request the data.
If things become difficult, raising a complaint with their professional body (e.g., ACCA, ICAEW) is an option.
It’s worth noting that outright refusal to hand over client-owned records is extremely rare and usually resolved through professional channels.
What Happens to Historical Data?
When you switch accountants, your historical data — prior years’ accounts, tax returns, and records — moves with you. Your new accountant needs this data to:
Prepare your future tax filings
Maintain continuity in VAT, payroll, and year-end accounts
Understand your financial history for advice and compliance
Your old accountant retains their own copies of past work for their records, mainly for compliance and audit trail purposes, but this doesn’t affect your ability to access your own information.
Can I Keep Copies for Myself?
Absolutely. In fact, it’s highly recommended that you always keep your own copies of key financial documents. This includes:
Annual accounts
Tax returns and computations
VAT submissions
Payroll records
Any legal or statutory filings
These should be kept for at least the minimum time required by law — often 6 years or more, depending on jurisdiction.
Whether you’re switching accountants or not, having your own archive protects you from potential issues down the line.
How Can I Make Sure Nothing Is Lost?
Here are simple steps to ensure a smooth handover of your financial data:
Notify your current accountant formally that you’re moving.
Check your contract for any terms related to notice or fees.
Confirm with your new accountant what they will request from your old one.
Keep your own backup copies of recent tax returns, accounts, and key filings.
Clarify who holds cloud accounting subscriptions — you or the old accountant — and arrange to transfer if needed.
Settle any outstanding invoices with your old accountant to avoid delays.
Will Any Data Stay With My Old Accountant?
Yes — their working papers stay with them. These are internal documents they used to prepare your accounts but are not necessary for your ongoing financial records.
Everything else — tax filings, accounts, payroll reports, VAT data — is part of your financial history and must be passed on.
