Signs you need to change accountant

Having a good relationship with your accountant is essential to business success. Working with someone responsive, communicative and knowledgeable will undoubtedly make your business life easier, while trusting that your finances are properly managed will bring much-needed peace of mind. If circumstances change, however, you may question whether you're working with the right accountant for your business. Here are a few signs to look out for that could mean it's time to consider moving on.

They make expensive mistakes

  This is perhaps the most obvious sign that your accountant is no longer meeting your needs. If you're missing reporting deadlines, payments are being made late, or data is being incorrectly reported, it could all cost you money, whether in interest payments or fines. At a bare minimum, you should expect your accountant to maintain your financial records accurately; if this isn't the case, it's time to end the relationship.

They are difficult to get hold off

The chances are, however, that your accountant is competent and capable, so it's likely to be other factors that are making you question whether they're right for your business. One common cause of frustration is if the accountant proves elusive and doesn't respond to emails or phone calls. Some even insist you make an appointment to visit them in person rather than picking up the phone. A lack of flexibility and responsiveness is a surefire sign that your accountant doesn't have your business's best interests at heart. To work well with your accountant, you'll need to be in regular communication with check-ins and updates coming from both sides. If they're not proactive in their communication, consider looking elsewhere.

They don't ask you questions about you and your business 

Proactive communication should also involve your accountant asking questions about your business, finding out about your future goals and understanding what you offer. Only by doing this will they be able to provide the right services for your business and avoid misunderstandings or misalignments.

They use too much jargon

Even if your accountant is interested in the details of your business, if their advice and responses are full of confusing jargon, you won't benefit from their professional knowledge. While the world of accounting is full of specific terminology, it's your accountant's job to ensure you fully understand what's going on. Moving your business elsewhere could be a good idea if that's not the case.

They don't tell you about deadlines 

As a business owner, you'll have plenty of information to remember daily, so you need to rely on your accountant to keep you on track regarding financial deadlines, such as submitting your self-assessment or VAT returns and paying your tax. Ideally, your accountant should be ahead of the game here, so you're not in a rush to submit documentation – the more this can be planned in advance, the less impact it'll have on your day-to-day operations.

You don't enjoy working with them

To develop a strong relationship with your accountant, there needs to be mutual respect, and you must enjoy working with them. If your accountant doesn't work in a style that suits you or offers the kind of service you expect and if you struggle to connect with them, they probably aren't the right fit for your business.

Your business has outgrown your accountant

Finally, your accountant could be doing everything right, but if your company has grown, your accounts have become more complex, or you require additional services such as management reporting, it may be that your accountant simply no longer meets your needs. In this scenario, it's important to look for a new accountant who fits the bill as soon as possible, as your business could suffer if you delay for too long.

How to switch accountants 

Now that you're clear that you need to find a new accountant, how do you go about it, and how can you ensure the business isn't negatively impacted as you make the transition?

Firstly, don't rush into making the change. You will have experienced what it's like to work with the wrong accountant, so take the time to ensure your next choice is a better fit. Don't be afraid to ask associates for recommendations, check testimonials and reviews, and speak to potential candidates. Also, try to schedule the switch for a quiet period financially to avoid year ends and the like. This will give you time to prepare a proper handover and allow your new accountant to settle in before it gets busy. 

Importantly, ensure your previous accountant has been paid, and neither party is waiting for any action or payment. Ending things on good terms will help to ensure the transition is as smooth as possible, so be upfront with your current accountant and inform them of the change as soon as you know it's happening. You'll need to grant them permission to speak to your new accountants so they can hand over any paperwork – your new accountant will help you draft a letter of notice on your behalf if needed.

Your old accountants will then need to provide a disengagement letter. This gives details of the work they have completed so far, including key dates and information. Your new accountant must also write to your previous accountant to 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, although this is usually just a formality. 

Finally, you'll need to assign authority to your new accountants for your tax affairs, so they can complete tasks such as filing tax returns on your behalf. Don't forget to change passwords to any relevant accounts at this stage so that your previous accountant can no longer access them.