Sunday 16 February 2014

Breaking up is hard to do?

Changing accountants is a difficult decision. You may have had a relationship for several years and have shared highs and lows on your business journey. There can come a time however when it is in the interests of both parties for there to be a change. Usually this comes down to capability. Is your current accountant capable of meeting the needs of your business as it develops over the next few years? If, after a careful and considered assessment, the answer is no, it is time to move on.

In my experience, many business owners put this decision into the 'too difficult' pile and things trundle along in an unsatisfactory manner, often for several years. 

As Neil Sedaka says, 'Breaking up is hard to do', but it may not be as difficult as you think.

Here are the usual steps:

Step one

Find your new accountant. A good starting point is talking to your business colleagues and asking who they work with and how the relationship works. Build up a short list of 2 or 3 candidates and meet and talk to them. Ask to speak to their clients to try and get a real understanding of how they work. You need to find someone who can support your business over the next few years. Take your time and broaden your search if you need to. It's a big decision and you want to get it right.

Step two

Let your current accountants know of your decision to change and let them know the name of your proposed new accountants. The 'ideal' time to change is after any major 'work in progress' is completed. So for example, changing whilst your accountant is in the middle of preparing your annual accounts is probably not a good idea.

Step 3

Your proposed new accountants will then contact your outgoing accountants and ask if there are any professional reasons why they should not accept the appointment and also to request the formal handover of records and working papers. The records requested enable the continuity of accounts and tax work.

Step 4

The handover of reponsibilities and records takes place

Step 5 

Your new accountants will prepare formal terms of engagement and when these are in place they can commence work

The handover process normally takes 2 to 3 weeks and usually works smoothly and effectively. There can occasionally be delays if outstanding work is to be completed by the outgoing accountant or a final invoice to be settled, but complications are rare.

Breaking up is undoubtedly hard to do. It is sometimes necessary however and choosing the right advisor can have a very significant impact on your business. So don't put this decision off because it is 'too difficult'. Grasp the nettle and you and your business could reap the benefits.

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