12 Oct Need to change accountants? Here’s how to do it
An accountant plays a key role in ensuring your long-term financial success. Whether you run a small business, or work for yourself, it’s absolutely essential to have the correct support network in place to keep everything ticking over properly.
So what do you do if your current accountant isn’t pulling their weight? How should you go about ending that business relationship in the most effective way, so that you can focus on the important matter of your company’s day-to-day operations?
Well, here’s a handy four-step guide to changing your accountant.
1. Make sure you’re doing the right thing
The first step is to ensure that you definitely want to change your accountant. Jot down the pros and cons of your current accountancy provider, and make a list of reasons why you believe it would be in your best interests to search for something new. Do you simply believe you’d be able to get a better service elsewhere, or is your current accountant’s performance genuinely detrimental to your business’ future?
2. Check the details of your arrangement
If you ultimately decide that you want to cut ties with your accountant, the first thing you must do is understand your existing contractual agreements. Make sure that your decisions are all completely above board, and that you don’t leave yourself open to legal action. Make sure that all payments have been made, and that there is nothing outstanding on either side. If everything is handled professionally, your accountant will be far less likely to put hurdles in your way.
3. Sort out a letter of professional clearance
As part of the process of appointing a new accountant to work for you, a letter of professional clearance will generally be required. Your new accountant will prepare this, and it will be sent to your former accountant. The purpose of this letter is to ensure that every necessary legal box has been ticked.
4. Finally, register with your new accountant
Once your outgoing accountant has fully co-operated with all requests, the next – and perhaps most important – step is to officially hire a new accountant to manage your financial affairs. This process will require the signing of a 64-8 form, or using HMRC’s online authorisation portal.
Any other questions
If you have any questions about changing accountants, or want more information about how SQK Accountancy can help your business thrive, get in touch with us today!