How Do I Change Accountants?

If you’re a small business, changing accountants can seem like a lot of hassle, so many people choose to just stay put - even though they aren’t quite happy. Although this might not be putting your business’ finances in jeopardy, it is important to like your accountant, and to cultivate and nourish a positive relationship with him or her.

Changing accountants is actually very straightforward. So if you want to change accountants, here are the simple things that you need to consider to make your move:

Write to your current accountant to give them notice. Inform them of your intention to end the relationship and include details such as the accounts you wish to be moved, and the date for which you would like the change to take effect. Include your new accountant in the email correspondence, as only then can your old accountant release your records.

Wait for professional clearance. Once you have given notice your new accountant will write to your outgoing accountant to request professional clearance. This is a procedural aspect of due diligence and is a customary courtesy between accountants, just in case there are any issues with a client.

Due diligence. As a legal obligation, before taking on any new clients, all accountants must conduct due diligence. This is an accountant’s legal responsibility to to make sure that new clients are compliant with the law. It’s a straightforward procedure, new clients will be asked to provide proof identify and address and will need to provide a company’s certificate of incorporation. Clients also have to sign a Letter of Engagement that outlines the responsibilities of the client, as well as those of the accountant.

Transferring your records. Once all other steps have been met, your outgoing accountant can transfer your records over to your new accountant. And with today’s cloud-based accounting, this is pretty much instantaneous.

It’s that simple.

If you are interested in moving your business accounting to Hatcher Advisory, please book a free consultation and let us handle the rest.