There are times when switching to a better accountant becomes not just important but indispensable. But how will you know when it is time to switch your accountant and how do you make the transition happen smoothly? Let us find out!
You are charged every time you seek advice.
You must have an accountant that advises you on an ad-hoc basis. If you receive an invoice from your accountant every time you seek suggestions or advice, it might be time to make a change. This holds especially true if you run a business because you will need tax-related information from time to time.
The accountant’s fee is exorbitant.
If your accountant charges you a bomb, it will stand you in good stead to ask around for the industry standards. Look for accountants that provide clients with packages or monthly subscriptions without any extended tie-ins so that you are only required to pay for the services you require.
You cannot see your accountant without a prior appointment.
It can become quite a hassle if you need to schedule an appointment and visit your accountant at his/her office every time you need advice. This is time you could spend investing in your business. Therefore, it might be a good idea to hire an online accountant that can help you out on email or call as per your needs. It would be best if you looked for accountancy firms that offer dedicated client managers who understand your business and can answer all your questions competently. They must be proactive when dealing with clients and offer efficient advice. Furthermore, ensure that you are not made to wait endlessly every time you need to get in touch with your accountant.
The accountant entrusts you with the task of filling out antiquated spreadsheets.
Accountants usually entrust the filling of spreadsheets to clients every year close to the Self Assessment deadline. This is not the best idea as it not just wastes time, but since you are not an expert, you might end up making a mistake. One accidental deletion of the formula and the entire spreadsheet will be ruined.
The endless jargon baffles you.
Having a knowledgeable and informative accountant is a must. However, you must not be bombarded with confusing terminology and nerve-racking jargon. If you do not understand what your accountant is talking about, make a change! Choose a firm that follows a jargon-free accounting approach and helps you understand complex topics in simple terms. This will help you understand the accounts part of your business better, and you won’t feel too bad processing your accountant’s invoice.
First Few Steps To Switch Accountants
Many contractors and freelancers do not want the hassle of changing accountants every now and then. One of the primary reasons for this is that accountants hold all kinds of financial details of individuals and companies. Hence, switching to a new accountant would mean gathering all the information all over again so that you can entrust it to the new one. Although the task might seem arduous, you can make your life easy by taking care of a few small things.
To begin with, make sure you check all the terms and conditions of the contract that was drawn with your accountant. These contracts usually require clients to serve a notice period before you switch or stop availing of their services. It is a good practice to notify your accountant before leaving. This process can become easier if you find a new accountant before leaving your current one. This is because the new accountant can send across a professional clearance letter to the current firm to transfer all the relevant information and documents related to your business.
Information To Be Transferred By The Previous Accountant
As mentioned above, your new accountant should get the following things from your previous accountant to make things easy:
- Bank reconciliation of all accounts
- Full financial statements including Year Ends with detailed accounts of profit and loss
- Details of any finance lease agreements or hire purchase with appropriate calculations
- Summaries of work in progress and stock, if applicable
- Analyses of trade debtors, fixed assets, prepayments, bad debt provisions, accruals, capital account movement, trade creditors, etc.
- Confirmation of disengagement of the previous accountant
- Corporation Tax computations copy
- Form CT620 that has been issued by HMRC during the last accounting period
- A copy of the recent CT600 form submitted with supplementary pages, if any
- Any information that affects the future liability of your company
Ready For A New & Improved Accountant?
If you are ready to make the change to a better accountant, check out how Target Accounting can make the switch easy for you. Get in touch with us for a free consultation, and we would love to make the transition smooth for you.
Frequently Asked Questions – FAQs
When should I consider finding a new accountant in the UK?
You should consider finding a new accountant if you are dissatisfied with the quality of service, if your current accountant does not have the expertise you require, or if your business has outgrown your current accountant’s capabilities.
How do I know if it’s time to find a new accountant in the UK?
Signs that it may be time to find a new accountant include persistent errors in your financial reports, lack of responsiveness or availability from your current accountant, or if they are not up to date with current tax laws and regulations.
What should I look for in a new accountant in the UK?
When looking for a new accountant, consider their qualifications, experience, industry expertise, and reputation. It’s also important to find an accountant who communicates well and understands your specific financial needs.
How can I find a new accountant in the UK?
You can find a new accountant by asking for recommendations from other business owners, searching online directories, or contacting professional accounting organizations for referrals.
What questions should I ask when interviewing potential accountants in the UK?
Ask about their experience working with businesses similar to yours, their approach to tax planning and compliance, their availability for meetings and communication, and their fee structure.
Can I switch accountants in the middle of the tax year in the UK?
Yes, you can switch accountants at any time during the tax year. Your new accountant can help you with the transition and ensure that all necessary information is transferred smoothly.
How can I ensure a smooth transition when changing accountants in the UK?
To ensure a smooth transition, make sure to provide your new accountant with all relevant financial documents and information, and communicate any ongoing or pending tax matters.
What are the benefits of finding a new accountant in the UK?
Finding a new accountant can lead to improved financial management, better tax planning, and access to expertise that better aligns with your business needs.
What are the potential drawbacks of changing accountants in the UK?
Potential drawbacks include the time and effort required to find a new accountant, the need to transfer financial records and information, and potential disruption during the transition period.
How can I make sure the new accountant is a good fit for my business in the UK?
To ensure the new accountant is a good fit, consider having a trial period or a small initial project to evaluate their performance, communication, and ability to understand and meet your business needs.