Regardless of whether you are an individual or a business, it’s important to properly handle everything related to your finances. Otherwise, you could find yourself having a lot of serious errors to correct. There is a lot that goes into submitting tax returns and managing your finances, which is why it’s important to enlist the help of a professional accountant.
But, you don’t need to use the same accountant forever, and changing accountants is actually a lot more straightforward than many people realise.
Reasons to for Changing Accountants
There are a lot of reasons for changing accountants, and you are free to do so at any time. You might want to change accountants because you are unhappy with the service they are providing or because they are giving you bad financial advice. You also might want to change accountants due to the cost, which does vary from one account to another. There are also reasons for changing accountants that are out of your control. For example, your current accountant might be closing their business, downsizing or retiring.
What to Consider When Changing Accountants
There are a handful of things to consider when you are changing accountants, and you should avoid simply choosing the first accountant that you come across, even though this might seem like the easiest thing to do. You need to think about the cost, as some accountants charge more than others, and a cheap service doesn’t always equal a high-quality service.
It’s also a good idea to think about how much knowledge the accountant has of your specific field and industry, and how experienced they are. This will help to keep the financial side of your business streamlined and reduce the risk of mistakes being made.
How to Change Accountants
The first thing to do when you are changing accountants is to find a suitable individual. There are a lot of accountants out there, and many of them specialise in specific industries. When you are choosing an accountant, experience and industry knowledge is key.
It’s then time to terminate things with your existing accountant, which should be done in writing. You should mention the specific date that you will stop using their services.
You can then register with a new accountant, which involves signing a 64-8 form. This form gives the new accountant authorisation to handle your tax affairs.
Before you start working together, your new accountant will send you a letter of engagement. It’s important to read this thoroughly, as it outlines the terms of their services and the costs associated. A letter of engagement also details the access they have to your finances.
Your new accountant will then send a professional clearance letter to your old accountant, asking them for information and documents relating to your tax affairs. With this information, your new accountant is ready to take over.