5 Easy steps to change your acccountant

It’s difficult to overestimate the importance of having an accountant that can not only meet your technical needs and keep HMRC off your back, but who also really understands your personal and business goals and can support you in how to achieve them.

A great accountant should take the initiative in preparing you for life’s financial twists and turns, not just explain the options but give you expert guidance and advice you need to make an informed decision. They should look at your business and family life as a whole and help you come up with an integrated financial plan that takes account of both.

In fact the most common reason we are given by prospective clients –either business or individual - who are looking to swap is that their current accountant is not proactive enough in advising them. Sometimes, of course, the issue is simply that as your business grows or your life changes you may need an accountant with a broader range of skills.

But even if they don’t feel they are getting the help they need, many remain with the same firm because they fear the upheaval of switching. In fact, however, in most cases changing your accountant can be a lot easier than you think, with your new accountant doing most of the work to ensure things run smoothly

Here’s the 5 simple steps it takes to switch your accountant.

1. Let your current accountant know your plan

Contact your current accountant advising them that you are planning on changing firms and asking them to provide any information requested by the new accountants. You should also use this opportunity to confirm whether there is any outstanding work to be completed.

2. Registering with your new accountant

The process for this can vary between firms. At Richardson Swift you will meet with a director who will spend some time understanding your needs. They will take your details and pass them on to our on-boarding co-ordinator who will register you as a client. Under UK law, your new accountant must carry out anti-money laundering checks on you, so you will be asked to provide a scan of your passport or driving license and a recent utility bill, as well as other personal or business details such as email address.

3. Sign a 64-8 form

This will authorise your new accountant to deal with HMRC for your personal and company tax affairs. Alternatively, you can use HMRC’s online authorisation service to complete this step of the handing over process.

•A declining or poor level of service where, for example, your accountant is not responsive to your needs

•You have received poor advice from your accountant resulting in issues with HMRC

•Your current accountant is unable to handle urgent matters

•Your accountant is about to retire and you’re looking for a fresh, new start

•Your accountant is not proactive in keeping you informed of tax changes and making sure you are as tax efficient as possible.

4. Read through the Letter of Engagement

You will be sent this by your new accountant and you will probably be expected to provide a signature to confirm you are happy with its contents. Make sure to read through it carefully as it sets out the expectations and requirements between you and your new accountant.

5. Letter requesting Professional Clearance

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 and you’re ready to move forward with your new adviser!