Can I Change Accountant Later if It Is Not Working?

Introduction

Choosing the right accountant is one of the most important decisions for any business owner. A good accountant saves you time, keeps you compliant, and helps your business grow. But what if the relationship is not working? Many people worry that changing accountants will cause problems with HMRC or disrupt their bookkeeping. In reality, switching accountants is a normal part of running a business, and when done correctly it can be simple and beneficial.

This article explains when and why you might consider changing accountants, how the process works in the UK, what to expect during the handover, and how to make the transition smooth and professional.

When You Might Need to Change Accountants

Most businesses change accountants at some point. Common reasons include poor communication, slow responses, unexpected fees, or a feeling that your accountant is not adding value. Sometimes it is a matter of expertise. For example, a generalist accountant might not fully understand your sector, while a specialist could offer better tax strategies.

You might also decide to switch if:

• Your business has grown and needs more strategic advice

• You have moved to cloud accounting and your current accountant prefers traditional systems

• You want more proactive support such as regular forecasting or management accounts

• You have lost confidence due to errors or missed deadlines

Changing accountants is not about disloyalty. It is about finding a professional who fits your current stage and goals.

Can You Change Accountants at Any Time?

Yes. There is no legal restriction on when you can change accountants. You can do so at any point in the financial year, even mid-way through tax or company filings. However, timing the switch carefully can make things easier. Many businesses choose to change just after submitting annual accounts or a tax return, when there are fewer deadlines.

If you are unhappy but in the middle of your financial year, you can still move. The new accountant will simply request records from your current one and continue where they left off.

How the Process Works

Switching accountants follows a clear and professional process. It involves three main steps:

1. Notifying your current accountant.
   You should inform them in writing that you intend to move. A polite, professional message is all that is needed. Your existing accountant must then provide professional clearance and pass over relevant records once you have authorised the new firm to contact them.

2. Authorising the new accountant.
   The new accountant will send a letter of engagement, outlining their services and fees. You must also authorise them through HMRC’s online system if they are handling your tax matters. Once this is done, they will take over as your appointed agent.

3. Handover of records and data.
   The outgoing accountant transfers key information, including trial balances, tax returns, payroll details, and bookkeeping data. This ensures continuity with no disruption to your accounts.

This process usually takes one to three weeks, depending on how quickly the outgoing accountant responds.

What Happens with HMRC and Companies House

When you change accountants, there is no need to notify HMRC directly yourself. Your new accountant handles this through their agent authorisation system. They will use a code sent to you by HMRC to confirm that they are now your authorised representative.

For limited companies, Companies House does not need to be informed about the change unless your accountant is also the registered office or company secretary. In that case, you will need to file an update to your company information.

Costs and Contract Terms

Check your current engagement letter to see if there are notice periods or outstanding fees. Some accountants include a clause requiring written notice, usually 30 days. If you are on a monthly retainer, ensure payments are up to date to avoid delays in receiving your records.

Most reputable firms will not charge to transfer information. However, if the outgoing accountant has significant work in progress, such as incomplete accounts or tax returns, they may bill for the portion already completed.

Your new accountant will quote separately for their onboarding and any catch-up work needed. This may include reconciling data, reviewing past filings, or setting up new accounting software.

Common Fears About Changing Accountants

Many business owners hesitate to switch because they fear upsetting their current accountant or causing administrative chaos. In reality, accountants are used to clients moving on. It is part of professional practice. Ethical guidelines from bodies like ACCA and ICAEW require accountants to cooperate with handovers and provide all relevant information once consent is given.

Some also worry that their accounting data will be lost. If you use cloud software such as Xero, QuickBooks, or FreeAgent, access can simply be transferred to the new accountant with no data loss at all.

Tips for a Smooth Transition

• Choose your new accountant before ending the old arrangement

• Inform both parties in writing to avoid confusion

• Make sure all invoices are settled to prevent delays in transferring records

• Keep copies of key documents such as tax returns and bank reconciliations

• Confirm deadlines with your new accountant to avoid missing any filing dates

The smoother and clearer your communication, the faster the process will be.

What to Look for in a New Accountant

When replacing an accountant, look for someone who suits your current business stage and communication style. Consider:

• Their qualifications and whether they are regulated by a professional body

• Their experience in your sector

• Whether they offer proactive advice instead of only compliance work

• How transparent their fees are

• How accessible they are when you have questions

Request an introductory call to ensure you feel comfortable. A good accountant will listen carefully, explain things clearly, and make you feel supported.

Benefits of Changing Accountants

Switching can give your business a fresh start. You may benefit from better systems, clearer advice, or stronger tax planning. A new accountant might introduce you to cloud bookkeeping, management reporting, or business forecasting that your old one did not offer.

A well-chosen accountant can also help you identify missed tax reliefs, tighten cash flow management, and plan for growth more effectively.

Conclusion

Yes, you can change accountants later if the relationship is not working. It is entirely normal and often leads to better service, improved communication, and stronger financial insight. The process is straightforward when handled correctly, and professional accountants are expected to make it as smooth as possible.

If your current accountant is not meeting your expectations, take it as a sign to review your options. With a clear plan and good communication, changing accountants can be the best decision you make for your business.