Are you looking at change accountants? Is your accountant not responding or taking far too long to get back to you?

We often have clients sign up for our services as a result of having a negative experience with their previous accountant or accounting firm.

For example, we recently picked up a new client in the Formwork industry. When asking him about why he wished to change accountants, he told us that his previous accountant was a great accountant but never picked up his phone calls or returned emails or calls.

This is a lesson to anyone in the services industry that doing good work alone is not enough. Having someone personable, that will treat your business like their own, is extremely important.

Unfortunately, changing accountants is a lot like breaking up with a girlfriend or boyfriend. It can be stressful, costly and it fills your mind with anxiety! A lot of business owners find themselves plagued with questions like:

  • What’s going to happen to the business?
  • How much tax am I going to pay?
  • Will the tax office come knocking?
  • How am I going to lodge my BAS and tax returns?
  • How will I have the time to look after all the compliance work?

In this guide, we’ll show you the appropriate steps needed to avoid a messy split with an accounting firm or accountant:


Change Accountants Tip #1: Collect your Information and Files

Changing accountants require you to do in a smart and well-planned way.

The first step is to make sure that you are collecting as much information as you can:

  • Tax returns lodged
  • Access to your accounting software
  • Financial Statements
  • Important documents concerning your business, companies and trust
  • Copies of receipts, invoices and letters

These can be attained through emails and hard copies you have filed away. If you feel vital documents are missing, try and contact your previous accountant to request any missing documentation.



Change Accountants Tip #2: Review Your Current Agreement T&Cs

Track and review where you are at with regards to your payments towards your current accountant.

Have you paid ahead for work that has not been completed? Or do you owe for work that has already been done?

Take the time to go through your signed service agreement issued by the accounting firm so that you are fully aware of what the repercussions are if you decide that you wish to terminate the contract. Is there a notice period that needs to be served?

What method of communication is required to notify your current accountant of your decision to cease utilising their services?

It’s important to note that you should not tell your current accountant that you are thinking to change accountants yet.


You might also be interested in our article: 3 Steps to Reducing Your Accountant Fees



Change Accountants Tip #3: Find and Speak to a New Accountant First

Shop around and speak to multiple accountants to see what may be best suited to you.

Ensure that you are addressing any shortcomings that you want to avoid. Be sure to discuss the following:

  • Specialisation – Do they offer the services you require? Do they have experience and similar clients in your field?
  • Communication and point of contact – Who will you be working with, and how will they contact you?
  • Fees – What are the costs?
  • Qualification and Registration – Make sure their tax agent license and membership with accounting and tax associations are valid.

It is essential to find an accountant that you can trust and believe you can work within the long run to avoid having to change accountants again so soon afterwards.



Change Accountants Tip #4: Attempt to Remedy the Situation

If you believe that the issues can potentially be addressed with your current accountant, this is the best time to do it rather than to change accountants.

If after discussing this with them that you feel that there is no improvement to the situation, then its best to start.


Change Accountants Tip #5: Sign Engagement Letter and Send Ethical Clearance Letter

By now you should have signed the engagement letter with your new accountant.

Have your new accountant send through an ethical clearance letter to request for information from your previous accountant. You can also send through the information you have collected previously to speed up the process of the transition.

If you encounter complications with requesting your information, it would be best to speak to your new accountant to mediate the issue.

Should this persist, your last step may involve filing a complaint with the Tax Practitioner Board or an appropriate association that your previous accountant is affiliated with such as the Institute of Chartered Accountants or CPA.



Key Takeaways

What’s important is that you are minimising any risks associated with an accountant who may react spitefully.

You’re protecting you and your business by planning and keeping all necessary relevant documentation if you need to change accountants.

While it’s doubtful to occur, it’s essential to make sure that there are no regrettable outcomes that result from complacency or negligence. If you are still uncertain, Box Advisory Services can assist with guiding you through this process if you are looking to change accountants.

Book a free consultation with us to find out how we can help you.


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Please note that every effort has been made to ensure that the information provided in this guide is accurate. You should note, however, that the information is intended as a guide only, providing an overview of general information available to contractors. This guide is not intended to be an exhaustive source of information and should not be seen to constitute legal or tax advice. You should, where necessary, seek your own advice for any legal or tax issues raised in your business affairs.

Changing Accountants - A Step by Step Guide