You've decided to switch accountants. Maybe your current one isn't giving you what you need. Maybe you want someone more local or more proactive. Whatever the reason, the good news is that switching mid-year is straightforward. There's no lock-in, and the process is smooth if you do it right.
The Practical Reality
First, the good news: you can switch accountants whenever you want. There's no contract that binds you. Your accountant can't hold your records hostage. They're professionally required to cooperate. It's that simple.
Second: switching mid-year isn't complicated. It does require some coordination, but it's a few weeks of admin, not months of disruption.
Step 1: Find Your New Accountant First
Don't tell your current accountant you're leaving until you've signed up with someone new. Interview a few options. Ask them about their experience with businesses like yours. Ask what they'd recommend differently from your current setup. Get a clear fee quote.
Once you're happy, get it in writing. Tell them when you want to start (ideally a specific month-end to align with accounting periods).
Step 2: Give Notice to Your Current Accountant
Tell your current accountant that you're switching. You don't need to explain why, though they might ask. Keep it professional and simple. "We've decided to work with another accountant" is enough.
Give them reasonable notice—usually a month is fair, though immediately is fine if you have a good relationship.
Step 3: Handover Your Books
Your new accountant will ask your old accountant for your working papers. This is standard. It includes:
- Last year's accounts and tax return
- Bank reconciliations
- Supporting schedules
- Any other relevant tax workings
Your old accountant is required to provide these. They might ask for unpaid fees first (fair enough). But they can't withhold them to punish you for leaving.
If you use cloud accounting like Xero, your new accountant gets instant access once you give them permission. That's it. No handover needed.
Step 4: Update Your Details
Tell HMRC that you've switched accountants. This is simple—your new accountant does it when they notify HMRC that they're acting for you. You don't need to do anything.
If you have payroll, tell your payroll software (or service) about the change.
Update any loan providers or business partners who have your accountant's contact details.
Step 5: Clean Up Outstanding Work
Ask your old accountant about any outstanding work or queries. Have them finish anything in progress. Get copies of tax returns, accounts, and compliance certificates you might need.
Make sure all records are up to date. You don't want a gap between when they stopped and your new accountant starts.
Step 6: Your New Accountant Takes Over
Your new accountant will:
- Review your records from the old accountant
- Understand your business and current position
- Set up their accounting systems for you
- Plan for the rest of the year (tax planning, forecasting, etc.)
If you're switching mid-year, they'll focus on getting you set up for year-end.
What Could Go Wrong?
Your old accountant withholds records. This is rare, but if it happens, escalate to their professional body (ICAEW, ACCA, AAT). It's against their code of conduct.
Cloud accounting access isn't transferred immediately. Your new accountant needs you to give them permission on Xero (or whoever you use). Do this immediately and the transition is seamless.
Missing paperwork. If your old accountant can't find something, ask them in writing. They have a duty to help. Your new accountant can also work around small gaps—they've seen this before.
The Timeline
From decision to fully switched usually takes:
- 2-3 weeks: interview and decide on new accountant
- 1 week: give notice to old accountant
- 2-3 weeks: handover and transition
- A few days: new accountant gets set up with your records
Total: 4-6 weeks. You can do it faster if needed. You can do it slower if you want to align with month-ends.
Make the Switch
If you're unhappy with your current accountant, don't stay out of inertia. Switching is straightforward. A better accountant will pay for itself through better tax planning and financial management.
If you're ready to make the change, get in touch. We'll handle the transition smoothly.
