Everything You Need to Know About Switching Accountants

If you’re looking to switch accountants, you’ve probably considered the pros and cons of the process. After all, you want your accountant to be a good fit for your business. So, how can you decide if it’s time to make a change? What are the steps to take? What are the warning signs that your current accountant might not be a good fit? Read on to find out!

Con of switching accountants

The benefits of a new accountant may outweigh the costs of switching. In fact, switching to a new firm could save you a significant amount of money without compromising the quality of the service. Ignite Spot, for example, offers 60 percent less cost than hiring in-house accounting staff. However, cost should be the secondary consideration. Be sure to check online reviews before making a decision. Be aware that a smaller accounting firm may cut corners and struggle with busy seasons and timeliness.

Changing your accountant will mean explaining your business’s needs to a different team. While it will cost less money up front, it will cost you extra indirect costs, like training. Additionally, switching could disrupt your current working situation. Your new accountant will need time to get to know your business, so ongoing projects might be delayed until they’re up and running again. A major con of switching accountants is nonavailability. Make sure you understand the scope of work your new firm will be performing.

Steps to take

Sometimes you may need to switch accountants for a variety of reasons. For example, you may find that your current accountant is no longer meeting your needs. Or you may be frustrated with an error your accountant made with HMRC. Whatever the reason, the next time you need to switch accountants, here are some steps to take. Keep these steps in mind when making a switch, and your new accountant will be more than happy to meet your needs.

Your new accountant should meet with your current accountant before you switch. This is important to establish a working relationship, as both parties should understand each other’s businesses. You can also discuss how much your accountant can save you in taxes – this is crucial for your business’s forecasting. Your new accountant will also provide you with a quote for their services, so ensure that you sign and return it to avoid any misunderstandings.

Before you switch accountants, it is important to communicate your intentions and the reason behind the change. Make sure that the switch occurs during periods when little business is occurring. You may find it hard to communicate well during times of high financial activity. Also, be sure to take care of all pending payments and transactions. This will ensure a smooth transfer of your business. If there are any disagreements, your new accountant will be able to communicate these concerns with your current accountant.

Once you have selected your new accountant, you need to register your account with HMRC. Your new accountant will speak with HMRC on your behalf and enact measures to save you money on taxes. It will also send a letter of engagement that outlines the services your new accountant will provide and their fee structure. Before you sign, read the letter very carefully and make sure the expectations are in line with the contract you signed.

Changing accountants is never a difficult decision. It may require a breakup conversation with your current accountant and setting up the future with your new accountant. Fortunately, if you’re able to overcome common fears, the transition should be relatively easy and painless. Regardless of the reason for the switch, a new accountant can help you achieve your business’s goals, so don’t put off switching accountants for another day.

Signs that your accountant isn’t a good fit

The wrong accountant can spell disaster for your business. According to Accountex, nearly half of small businesses have switched accountants due to ineffective advice and lack of responsiveness. Here are some signs to watch for. If your accountant is about to quit, pay attention to the following warning signs. o Your accountant doesn’t give proactive advice or is skipping deadlines. This could mean your accountant is leaving you for the sake of their own career.

They don’t respond promptly to questions or deadlines. If your accountant is always late to meetings or files incorrect returns, they are not a good fit. Make sure you communicate openly with your accountant and avoid hiring an extraverted accountant if your relationship doesn’t go well. You should also feel comfortable discussing your work with your accountant in person. Your accountant should be able to answer your questions and explain the reasons behind their answers.

Your accountant doesn’t listen to your goals. He or she should be proactive in reviewing your finances and helping you plan your future. At least quarterly, you should discuss your financial goals with your accountant. If your accountant is only reactive, it’s time to switch. Your accountant should be able to help you save money and meet your objectives. It’s not worth putting your business at risk because of your accountant’s inability to communicate effectively.

While a good accountant can help you understand concepts and make complicated financial decisions easier, it’s best to learn as much as you can about your finances and your business. If you hire an accountant with no knowledge of your industry, you should be aware of any unprofessional conduct on their part. If they do, they’re not being honest with you, and you’ll be stuck with an expensive bill and a messy relationship.

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.