What You Should Consider When Switching Accountants for Your Business?

The process of changing accountants is something most businesses will have to go through at some point in their business lifetime. This is especially important if you feel like your current accountant isn’t doing what needs to be done as your business evolves. There are, of course several other reasons why you might want to switch accountants. Perhaps they are not ensuring that your cash flow is optimised to take advantage of new opportunities, or they are not always proactive in providing you with information about your business. Whatever your reasons are, switching accountants doesn’t have to be a hassle. Below are some important factors you should consider when switching to a new accountant.

Timing

For a smooth transition, you need to properly assess the timing of your switch. For example, tax season, the end of a quarter, month, or year is not a good time to transition to a new accountant. This is because accountants are at their busiest during these time. A good recommendation would be to wait till there is little active business between your business and your current accountant. This ensures that nothing affects the changeover, which already requires the full attention of all the parties involved.

Your Business Needs

Every business is different. This means that the financial needs of your business will vary based on a number of factors; your company size, the state of your balance sheet, and the type of industry you serve.

As at the time you hired your current accountant, you must have found their services to be adequate and valuable enough for the needs of your business at that time. However, if your business needs have changed over time, it is crucial that you go for an accountant who will better meet those needs. Be on the lookout for accountants Epsom that specialise in your line of work (industry) as they will be better equipped to handle the complexities of your finances while also helping your business better adapt to unique opportunities and threats year after year. 

Hunt for Value

Another important thing you must do when switching accountants is to clearly discuss what your business expectations are with your new accountant. Just like you would a new employee, have a sit down with them and find out if they will be able to provide the level of service your former accountant was unable to provide.

Also bear in mind that the new accounting firm you hire will be obliged to provide you with a letter of engagement outlining the services to be provided and what their fee structure/rates are. You should negotiate these rates and make sure that they benefit your business before signing.

Informing Your Current Accountant

Finally, after doing your due diligence with the new accountant you’ve chosen, you will need to speak to your previous accountant about things like your reasons for leaving, paying unsettled dues, and setting a date for departure.

Conclusion:

As a business owner, switching accountants can be a very hard decision, especially when you consider things like privacy, the years of financial information built up with your previous accountant and the professional relationship you have developed with them over the years. However, if your bottom line will benefit from the switch, then it is definitely worth it, and by considering the above factors, the transition should be carried out very smoothly.