What is the best way to transition from one accountant to another?

 Accountants are critical to a company's success and profitability. They ensure that a business is comply with the newest tax legislation and runs as tax-efficiently as possible, in addition to managing business accounting. When your firm expands or changes, you may have to make the tough decision to switch accountants.

We're frequently approached by potential clients who are unsure how to switch accountants. Switching from one to the other, according to many accountants, is a time-consuming and costly process. However, we have simplified the procedure so that it may be completed quickly. Continue reading to learn how to switch accountants.

Changing accountants for a variety of reasons

You may be considering changing accountants for a variety of reasons. The most common reason we get from prospective clients who want to switch accountants is because their present accountant isn't proactive in advising them, or that their business has grown or changed, and their existing accountant can no longer meet their demands. Other reasons you might want to switch accountants include:

  • A deteriorating or unsatisfactory level of service, such as your accountant's failure to respond to your needs.
  • Your accountant gave you bad advice, which caused problems with HMRC.
  • Your existing accountant is unable to deal with pressing issues.
  • You're looking for a new start because your accountant is set to retire.

What to think about before changing accountants

You should not rush into changing accountants, and you should think about what the best moment is for your existing and prospective accountants to pass over their files. Try to make the switch when there isn't much going on, and avoid changing accountants in the middle of producing reports or conducting an audit.

Take the time to double-check that all of your financial obligations have been met. Disputes over unpaid fees, for example, frequently cause delays and disruptions in the smooth transition from one accountant to the next.

Switching accountants in 5 easy steps

Here are some measures to take if you want to change accountants and join our professional team at Alexander & Co. Please contact us if you have any queries, and a member of our team will be pleased to assist you in making the transfer.

1. Replacing the accountant's letter

You'll need to draught an accountant termination letter informing your present accountant that you'll be transferring firms and asking them to give any information the new accountants require. You should also confirm if there is any expectation for completed work, such as finishing the financial year-end accounts, in this letter to change accountants.

2. Making an appointment with a new accountant

Your new accountant will send you a document to fill out so that you can complete your registration with them. This form will include both personal and business information. Your new accountant is required by UK law to conduct anti-money laundering checks on you, therefore you will need to produce a scan of your passport or driving licence, as well as a current utility bill.

3. For your new accountant, sign a new 64-8 form.

You authorise the new accountant to deal with HMRC for your personal and business tax affairs by completing a new 64-8 form. Alternatively, you can complete this part of the handover procedure using HMRC's online authorisation tool.

4. Go over the letter of engagement in detail.

Any accounting company you work with should be a member of a recognised professional organisation, such as the Institute of Chartered Accountants in England and Wales (ICAEW). They are required to send a 'Letter of Engagement' in this scenario. Make sure you read it thoroughly because it outlines your and the new accountant's expectations and responsibilities.

5. Request for Professional Clearance in a Letter

Your new accountant will send a letter to your old one requesting professional clearance. This informs your prior accountant that you have called a new accountant to represent you and that there are no professional reasons for them to decline the appointment. The letter requesting papers from the prior accountant will ask for any copies of accounts, tax records, tax returns, and any other information they require.

All of your accounting information should have been safely transmitted to your new accountant just a few weeks later. You may have to negotiate this price with your new accountant if there is any remaining work to be done to bring your accounts up to date.

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