Switching Accountants? Here’s What to Expect
Making the Switch: What to Expect When Changing Accountants
Whether you're dissatisfied with your current accountant, your business has evolved, or you’re simply ready for a more proactive partner, switching accountants can feel like a big step. The good news? It doesn’t have to be stressful—when done right.
Here’s what to expect when you change accountants:
1. Organizing Your Financial Records
Before the transition, gather your key documents:
- Prior year tax returns
- Financial statements
- Payroll reports
- Incorporation documents
- Accounting software access or backups
Your new accountant will likely need these during onboarding to assess where things stand and start cleanly.
2. Notifying Your Previous Accountant
It’s considered professional courtesy to notify your current accountant. If you’d prefer, your new accountant can handle this communication for you. Most firms will coordinate the transfer of files directly and keep things civil and efficient.
3. Signing an Engagement Letter
A reputable accountant will ask you to sign an engagement letter outlining:
- The services provided
- Fees and billing schedule
- Terms of the relationship
This document protects both you and the accountant.
4. Reviewing Your Past Returns
Often, a new accountant will review your past 1–3 years of tax filings to:
- Spot errors or missed deductions
- Check compliance
Identify opportunities for amendments or tax planning This step is important and often pays off.
5. Transitioning Software and Access
Your new accountant may recommend changing or optimizing your accounting software. They will help set up access, connect banks and systems, and train you or your team if needed.
6. Creating a Forward-Looking Strategy
Beyond just “cleaning up” your books, a great accountant will help you:
- Forecast cash flow
- Plan for taxes
- Set goals for future growth
This strategic shift is often the biggest benefit of making a change.
Final Thought: Changing accountants might feel like a hassle, but the right accounting partner can have a powerful impact on your finances—and your peace of mind. Don’t settle for “good enough” when you could be working with a team that helps you do better.
