The good news is that changing your accountant is normally less hassle than changing a utility supplier. There is really only one action you need to take:
Write to your current accountant to inform them who you have appointed as your new accountant.
Your new accountant will deal with everything else concerning the handover of information which your existing accountant holds on your behalf. There are three main things you’ll need to sort out with your new accountant:
- Letter of Engagement – which is the equivalent of a contract.
- Personal ID – to enable your accountant to comply with the laws on moneylaundering monitoring.
- New Client Form – so that your new accountant has all your business details.
Handover Fees
The most any decent accountant should charge for handover is one hour’s time. All they need to do is gather up the files, and reply to a standard letter from your new accountant.
Potential Pitfalls
The most common problem when transferring accountants is a fee dispute. Your accountant may be seeking to charge a fee which, for whatever reason, you may think is not appropriate and refuse to pay. In such circumstances, your existing accountant may refuse to co-operate in dealing with the handover.
They should not refuse “Professional Clearance” on the basis of a fee dispute alone, although they are entitled to advise your new accountant of the circumstances and it will then be up to your new accountant to consider whether or not they should take on your case in the circumstances.
Your new accountant may be able to assist in resolving the problem but should all else fail and you believe your existing accountant is behaving in an unreasonable manner, you could always file a complaint against him with his professional body.
Most accountants would wish to avoid such a complaint being made against them, unless the fee dispute is for a material amount of money (unlikely in the case of a freelance consultant) and your suggestion that a complaint might be made, may well encourage them to settle the matter with you.
Another problem may be that your existing accountant does not respond, perhaps because they are no longer in business, have disappeared or are unqualified or simply refuse to answer correspondence. This would be unusual from a qualified accountant. If it becomes impossible to obtain any response from your existing accountant, your new accountant will still be able to take on your case, having made a reasonable attempt to contact them and obtain a response.