Time to switch accountant?

Generally, businesses will make the decision to change accountants for a number of reasons. This guide will give you a brief overview on the steps to take to ensure the process is as smooth as possible.

Provide information to new accountant

Once you have found the new accountant, it is a good idea to provide all the information that they have requested to them as soon as possible. This will allow your new accountant to understand your business and work out the best way to service you.The information normally consists of the following:

  • Bank statements
  • Previous years financial accounts and tax returns
  • Access to your up to date accounting software
  • Contact details
  • Business and personal details
  • Company details
  • Purchase documents of business assets
  • Loan statements
  • Lease contracts and documents
  • Personal assets and liabilities statement

Contact your previous accountant

You should contact your previous accountant that you are leaving and give them permission to provide your information to your new accountant if required. During this time, your old accountant may request to settle any outstanding accounts with them.

Planning and Compliance work

Once all the information is received, the next step is to plan when to start preparing your BAS, tax returns and financial accounts. Since your compliance work can be quite time consuming, your new accountant will work out the most suitable time so you can lodge your compliance work on time without it affecting your busy periods.

Engagement Letter

The engagement letter will be provided to you before any official work can begin. This is basically an agreement with the terms and conditions, signed by both parties.

Things to consider

  • Check if there are termination fees with your previous accountant when cancelling your contract.
  • Ensure your previous accountant provides all the information required to your new accountant. Delays can often happen if all information is not provided.
  • All businesses are different, so provide as much information regarding your business so your new accountant can provide the right service to you.

Please note that every effort has been made to ensure that 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 and small businesses. 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.