Some may think that switching an accountant could be a difficult task, a complex process. But let us tell you, that isn’t the case. If you follow the process, and with the right approach, you can switch your accountant easily.
In this guide, we will explain you how to change your limited company accountant easily and hassle free.
The situation to change your accountant could arise due to various reasons, like better services, or same services at lower fees, or maybe your accountant is just not efficient enough to handle your accounts. The reason can be anything but the process to switch your accountant remains the same.
Accountant plays a vital role when in managing finances. Hence, you need an accountant that is fully compliant with HMRC guidelines, has the right tools and resources to manage your accounts. You should be able to access your accounts 24/7 through an online portal or a mobile application. Should the need arise, you should have access to a dedicated person who should be able to help you with your queries, be it over the phone or face-to-face.
Follow these 10 steps to switch your accountant easily
- Evaluate Your Present Situation: You need to first figure out why you need to switch your accountant. If the reason to switch your accountant compelling enough? No one is perfect, and if the issues are minor, discuss with your accountant and try to resolve it. Prepare a list of expectations that you may have from your new accountant.
- Shortlist Accountants: Don’t rely on just one Accountant. Use platforms such as ours, or look up on the members directory of professional associations like the ACCA or ICAEW. Seek referrals and recommendations from your colleagues. Go online and look for potential accountants. The emphasis should be on their experience rather than just on their fees.
- Arrange Meetings: Once you have shortlisted a few accountants that you think would best suit your accounting needs, arrange a meeting with them. Rather than meeting them over a video call, try to meet them personally, and at their office, not at any Coffee shop. Discuss your requirements and expectations with them and ask any relevant questions you might have for them.
- Review Engagement Terms: Ask for an agreement, a contract, from your shortlisted accountants. It should contain all the essential information you need, like their fees, services offered, terms and conditions, entry or exit fees etc. Go through them in detail to make an informed decision.
- Notify Current Accountant: Once you have finalised an accountant, it is time to notify your existing accountant about your decision to switch. You need to provide them a written notice which could be through an email and request for a transfer of your accounting records and necessary documentation.
- Transfer Your Books: It’s time to coordinate with your current and new accountant for a smooth transfer of your accounting records and documents. Financial statements, tax returns, payroll information, and any other necessary documents may need transferring.
- HMRC and Companies House: You need to inform the HMRC and Companies House about the change in your accountant and update their details. This is to ensure that all future correspondence and fillings go to your new accountant. Your new accountant would ask you to sign Form 64-8, which informs the HMRC that your new accountant will be representing your company.
- Monitor The Transition: The transition process may take some time, and you would need to patiently wait for the process to complete. During this period, monitor the situation and stay in touch with your current and new accountants to ensure a smooth transition.
- Evaluate: Assuming that you are now well settled with your new accountant, it is time to evaluate their services. It is to time to find out if they are delivering on your expectations.
- Communicate: It is important to maintain regular communication with your accountant and keep them update about any changes in your business or financial circumstances. This will help them assist you in an efficient manner.
Switch an accountant for your limited company requires a little bit of planning and careful execution.
By following these steps and selecting an accountant who understands the specific needs of limited companies, you can ensure a smooth transition that supports your business growth and compliance requirements.
If you need any help in choosing the best accountant for your limited company then please feel free to get in touch with us.
