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How To Change Accountant

By 06/05/2022June 12th, 2023No Comments
How To Change Accountant

There can be many reasons why as a business owner, you may feel changing accountant is the right course of action. The process of changing accountants is actually a relatively simple one, contrary to what your current accountant may have you believe.

Before you think about changing, ask yourself these questions:

Am I getting value for money?

If you don’t feel like you’re getting the level of service you’re paying for this can be a cause for concern. Do some investigating and see whether you could get better value elsewhere before making any decisions.

Does my accountant understand the needs of my business?

It is critical that your accountant fully understands what you need from them and your plans for future growth. A simple misunderstanding such as being proactive in finding tax-saving opportunities for your business can result in a misalignment between both you and your accountant.

Are my returns filed in good order and on time?

As part of delivering a good service your accountant should always be ahead of deadlines and in contact with you in good time. Asking you to drop everything to rush through a tax return when deadline day is approaching is unacceptable. This distracts you from your work and, most importantly, growing your business.

Has my business outgrown my accountants?

Business growth is one of the biggest reasons to move on from your accountants. At the first sign that your accounts are getting too complex for your accountants to handle it’s time to look elsewhere.

Has my accountant outgrown me?

  • You’re beginning to feel like a number to a large firm of accountants
  • It seems that they simply do not have the time to deal with your enquiries
  • They are unapproachable and rarely available to handle urgent problems

Time to move on…

Finding your next accountant

Changing accountants shouldn’t be a rushed process, and research into finding the right accountant for you is key.

Here are a few ideas of what to look for:

  • Good customer testimonials
  • Deals with customers already in your sector
  • Transparent pricing
  • Helps with both personal and business goal setting

Finding an accountant that is at the forefront of change is crucial, as with every industry, accountancy is constantly evolving. For instance, with the introduction of ‘Making Tax Digital’, cloud-based accounting software such as ‘Xero’ is fast becoming an expectancy for the majority of clients, and it’s imperative that your accountant is completely up to speed to the latest software updates.

You will also need to ensure all financial responsibility between yourself and your current accountant has been discharged. For example ensure all of your bills are paid and neither party is waiting on an action or payment. Disputes over unpaid fees is the most common and significant threat to the smooth transfer of business.

Once you’ve made the decision to change, you need to think carefully about the most appropriate time for the handover between your previous and new accountant. Ideally this will take place when there is as little activity as possible happening. With this in mind, opting to change accountants at the end of your financial year would be inappropriate, as this is likely to be the busiest time for you.

Looking for business accountancy services

What is the process of changing and switching accountant?

Choosing to switch to a different accountant is usually one of those unenviable tasks, which is why so many company leaders often choose to leave it for another year. However, it is not as difficult or disruptive as you might think, and the benefits can often outweigh the uncomfortable initial conversation you might have with your existing accountant. Professional accountants will also want a smooth transition and to respectively help you move, because they realise that you might want to refer them to someone else one day. Below are the very simple stages to follow.

Inform your current accountant

End things with your current accountant on good terms where possible. Let them know that you’re moving on, as this will make the whole process much smoother. You’ll need to grant them permission to speak to your new accountants in order to hand over any paperwork. Alternatively, your new accountants can help you draft a letter of notice to send on your behalf.

Professional clearance letter

Your new accountant will also need to write to your previous accountant. In this letter they will ask for professional clearance and request any relevant paperwork. They will also ask whether there is any reason they cannot take you on as a client – this is a formality and usually causes no problems. Your previous accountant may charge you a small fee for this service.

Assigning authority

Finally, you’ll need to assign authority to your new accountants for tax affairs. This means they can file returns on your behalf. HMRC will issue an authorisation code to confirm the authority of your new accountant and that they can deal with them directly on any taxation matters.


At Direct Peak we ensure the process of changing accountants is kept as simple as possible. Our aim throughout the process is to cause minimal disruption to your business.

As part of our onboarding you receive the following:

A clear proposal showing you exactly how much you will pay
A letter of engagement containing all of our policies, terms and conditions
An initial meeting with your main point of contact

To find out why company leaders are switching to Direct Peak, then please book in a quick Discovery Call with our team or chat to us online

    Steve Marshall
    Steve Marshall
    The whole team at Direct Peak have been amazing to work with. Everything we have been looking for from an accountant. Thank you from Acoustic Associates
    Luke Tyler
    Luke Tyler
    The Direct Peak team are exceptional in all they do. They demystify my questions on accounting, offer clear, sound advice, and help me to make informed decisions about my business.
    Don Wiid
    Don Wiid
    Karl Newman and his team help us with our Xero accounts system, making sure it is accurate and up to date. The real value though, is Karl's experience as a management accountant, providing indispensable advice on a monthly basis to ensure we keep growing.
    Craig Sawyer
    Craig Sawyer
    Direct Peak are the perfect accountants for me. Always helpful and friendly. They take away any of my accountancy headaches which allows me the time to focus on my business. Would highly recommend them and do to any business owners I can. Thank you all !
    Kelsey Brace
    Kelsey Brace
    I've worked with Karl & Direct Peak for years. They have always provided great service and advice. Highly recommeded!
    Sana Hanassi-Savari
    Sana Hanassi-Savari
    Great service, I would highly recommend them. The team are friendly, always around to help and very knowledgable.
    Simply Antivirus
    Simply Antivirus
    Direct Peak was the right choice for us. Outstanding friendly service. The team are highly knowledgeable regarding tax and financial matters, and they have been an asset to the running of our business. Very approachable and have an answer to all my questions. Highly recommend them! Very well done guys!
    catherine Johnson
    catherine Johnson
    I recently changed my Accounting to Direct Peak, mainly due to Karls brilliant support with advice regarding making Tax Digital and around my business growth intentions. Having run my own small business and being with my previous accountant for 13 years, I have been SUPER impressed with every aspect of the move - the advice, the support, and mostly the friendliness of the team and their willingness to want to help. Eve has been so amazing at supporting me to make the transition to Digital VAT returns - I cannot recommend Karl and his team at Direct Peak highly enough - Thanks Guys!
    Peter Baker
    Peter Baker
    Karl has been outstandingly patient and generous with his time. I cannot recommended Karl enough. He has helped massively in starting up my own company.
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