Switching accountant: how to make the change smoothly

Moving to a new accountant is common — and usually straightforward when both firms follow professional clearance etiquette and you plan the handover around your filing calendar. Whether you are a sole trader or a limited company director in Chislehurst, Bromley or elsewhere, the same principles apply.

This article walks through the typical steps, what “professional clearance” actually means, which records matter most, and how to time the switch so nothing falls between two firms.

Why people switch

Clients change accountants for many reasons: fees that no longer feel fair, slow responses, a firm that has outgrown (or undergrown) their needs, a move into cloud software, or simply wanting a more local relationship. None of those reasons require drama. A well-run transfer protects continuity with HMRC and Companies House while you settle into a better working rhythm.

It is also fine to switch because you want a firmer that focuses on small businesses rather than a high-volume model that never learns your trade. Fit matters as much as technical competence.

Typical steps from first chat to live engagement

1. Introductory meeting — share what you do, your year end, software, and what frustrates you today.
2. Proposal and engagement letter — scope, responsibilities, fees and how you will communicate.
3. Professional clearance — your new firm writes to your current accountant seeking confirmation that there is no professional reason not to act, and requesting information needed for continuity.
4. Records and software handover — accounts files, tax computations, payroll history, VAT workings and cloud access.
5. HMRC and Companies House updates — agent authorisations, CT and Self Assessment agent access, and filing agent details where relevant.
6. First period of work — agree who owns the next VAT return, payroll run or year-end so nothing is duplicated or missed.

What professional clearance covers

Professional clearance is a courtesy and quality step between regulated firms. Your outgoing accountant is asked whether they know of any reason the incoming firm should not accept the appointment (for example unresolved ethical issues), and is usually asked for factual information such as the latest accounts, tax returns, open enquiries and key deadlines.

Outstanding fees with your old firm can slow the release of working papers. Settle what you owe, or agree a plan, so the handover is not blocked. You remain entitled to copies of documents that are yours (statutory accounts, tax returns you have already filed, and source records). Working papers created by the old firm may stay with them subject to professional rules — your new accountant will tell you what they still need from you directly.

Records checklist for a clean handover

• Latest filed accounts and Corporation Tax computations / CT600 acknowledgements
• Self Assessment returns and computations for individuals and directors
• VAT scheme, VAT registration number and recent VAT returns
• Payroll scheme details, FPS history and year-end summaries
• Companies House authentication code (or confirmation of who holds it)
• Cloud accounting login (or invitation) and bank feed status
• Fixed asset register, directors’ loan workings and open tax queries
• Any HMRC enquiry or time-to-pay correspondence

If your bookkeeping lives only in the old firm’s desktop file, export or request a backup before access is withdrawn. Losing history is far more expensive than a few days of overlap on software licences.

Timing tips

Mid-year switches are fine for many services. Around year end, VAT quarter ends, or Self Assessment filing season, build in extra lead time so filings are not caught between firms. Tell both accountants which specific return or payroll run each will own. If Making Tax Digital quarterly updates are live for you, decide who sends the next one before you revoke old agent access.

Do not cancel your old engagement the day before a statutory deadline unless the new firm has already accepted responsibility in writing and has enough information to file. A two-to-four week overlap is often ideal: enough time for clearance letters to go out and for you to test the new communication channel.

What good looks like after the move

Within the first few weeks you should know: who to email for bookkeeping questions, when management figures will arrive, how fees are billed, and what your next three deadlines are. If that clarity never appears, you have simply swapped one frustration for another — keep expectations explicit in the engagement letter.

Ask for a short “first 90 days” plan: software tidy-up, any historic catch-up, and the next filing date. That plan is a useful yardstick when you review the relationship at the end of the first quarter.

Starting with Muftals Accountancy

We are ACCA and CIMA accountants based at 1 Bromley Lane, Chislehurst, working with small businesses and sole traders locally and remotely. Our client onboarding process is designed to make a switch calm and documented. Browse small business accountancy, accountants in Chislehurst, or book a free meeting to talk through your situation — no obligation to leave your current firm until you are ready.