We always recommend that if you're happy with the service you're receiving from your accountant and the price you're paying, that you'll likely be best served by staying put. However, changing circumstances can mean you may be thinking about a switch.
The most common reasons we hear for considering a change are:
a declining level of service or you are not getting the expected level of support from accountant;
your business has evolved and your accountant is no longer able to meet the needs of the business;
loss of confidence in your accountant due to poor advice or lack of proactivity;
fees rising above inflation year after year.
We know the thought of changing accountant can be a daunting prospect and you could be asking yourself whether it's worth the hassle. In reality, the process will normally be pretty straight forward and your old and new accountants will do most of the heavy lifting. Read on to find out more about the process.
5 simple steps to switching accountants
If you would like to switch accountants and join our experienced team here at Chapelton Accountancy Services, here are some steps to assist you. If you do have any questions, please contact us and a member of our team will be happy to help you make the switch.
1. Let your existing accountant know you're leaving
Firstly you need to write to your existing accountant - an email will often do - to tell them you are switching firm and asking them to provide any information requested by your new accountant. If there are any ongoing assignments, you should set out your expectations for these to be completed prior to the switch.
2. Registering with a new accountant
Your new accountant will request some information from you about the Directors and Company, to allow them to compete the on-boarding process. It is a legal requirement to carry out anti-money laundering checks, so a scan of passport or driving license as well as a recent utility bill for all Directors will be needed.
3. Put agency agreements in place
Your new accountant will arrange for agency agreements to be put in place, so they can deal with HMRC on your behalf. You will receive authorisation codes through the post for each tax, and by passing these onto your accountant, you are giving authority for HMRC to communicate directly with them.
4. Review Letter of Engagement
It is strongly recommended that you contract with an accountancy firm who is a member of a recognised professional body, such as the IFA, as it's an assurance that your new accountant has the requisite training to be able to handle your affairs. If you do, your new accountant will be obliged to send you a letter of engagement, which sets out the scope of services and the terms and expectations from both sides, which you should review, sign and return.
5. Professional Clearance letter
Your new accountant will write to your previous one requesting what is known as professional clearance. This explains to your previous accountant that you have contacted the new accountant to represent you and if there are any professional reasons as to why they should not accept the appointment. The letter requesting documents from the previous accountant will include a request for any copies of accounts, tax records, tax returns and any other information they may need.
Just a few weeks later, all your accounting information should have been safely transferred to your new accountant. If there is any outstanding work to be completed to bring your accounts up to date, you may have to negotiate this fee with your new accountant.
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