What should I do if I want to change my accountant?

Posted Jun 3, 2011

If you are planning on contracting as a career, chances are you will employ several accountants before you find one which you are entirely comfortable with.

The process of changing accountants is relatively simple.

Here we look at the steps involved in the changeover process:

Write to your existing accountant

You first need to write to your current accountant - an email should suffice, unless they request a hand written letter. You need to advise them that you are changing accountants to XYZ Ltd and ask them to furnish your new accountants with any requested information.

You should also indicate if there is an expectation of work to be finalised, for example; "I will require you to complete the financial year end accounts ending 31/3/2010".

Registering with the new accountant

The new accountant will usually send some type of registration form to capture your personal and limited company information. They will also need to carry out an anti-money laundering check on you by law.

Authorising the new accountant to deal with HMRC

You will need to sign a new 64-8 form to authorise the new accountant to deal with HMRC on your behalf, for both personal and company tax affairs.

Letter of Engagement

The new accountant (if registered with a professional body such as the ICAEW) is obliged to send you a 'Letter of Engagement' which sets out the expectations and requirements between the two parties.

Professional Clearance

The new accountant will to write to the previous one requesting professional clearance. Typically the letter would read something like this:

"We have been approached by Joe Bloggs to act as accountants on behalf of their limited company ABC Ltd. Please may you advise us if there is any professional reasons why you think we should not accept this appointment."

The letter continues to request copies of accounts and tax records, tax returns and any other information they may need.

A fresh start

After a few weeks, assuming that there are no hold ups, all your accounting information should have been transferred and you will be safely on board with your new accountant.

Naturally, should your new accountant not fit the bill, at some time in the future you will need to start the process again with a new firm of accountants!

Thanks to Sally Fletcher from planIT for contributing to this article

All content ©Contract Eye Ltd. Protected by Copyscape. Please scroll down for related articles.

Contractor Accountants

Contract Experts - ClearSky Accounting on 08000 325 326
InTouch Contractor Accounting - personal service & clear advice
K & B Accountancy Group - Fixed fee contractor accounting only £75pm
Free IR35 & Tax Review - Call ICS on 0800 195 3750

Contractor accountancy costs unlikely to drop due to EU accounting changes
Contractor accountants have expressed different views on the impact new EU regulations will have on the accountancy burden small limited companies have to bear.

EU agrees to cut accountancy burden for small limited companies
The EU has adopted a directive which will exempt many small companies from the accounting obligations they currently have, meaning that most contractor companies may no longer have to submit complex accounts each year.

Why should contractors choose a specialist accountant?
Given that all qualified accountants should be able to keep the books of your average limited company contractor, why do most contractors hire specialist accountancy firms?

Online contractor accounting - what are the benefits?
Most contractor accountancy firms have embraced web-based technology to some degree, but what benefits can you gain from using online accounting software?

Checklist to help compare contractor accountants
To help you compare accountants effectively, try this simple checklist which you can use when talking to prospective accountants.

Will your new contractor accountant charge to form a limited company?
Most accountants can set up a limited company on your behalf, either for free if you're appointing them as your accountant, or for a fixed fee. How much can you expect to pay for this initial service?

Do you need to appoint an accountant for your limited company?
When you set up in business as a limited company contractor, do you have to appoint an accountant? What are the benefits?

Should accountants charge to bring your old accounting records up to scratch?
When you join a new contractor accountant, with incomplete accounting records in tow, should the new provider charge you to bring them up-to-date?

What qualifications should contractor accountants have?
When choosing a contractor accountant, you need to be sure that the accountant you sign up with is professionally qualified to do the job, and that safeguards are in place just in case something goes wrong.

Things to avoid when choosing a contractor accountant
For limited company contractors, the professional person you are most likely to seek advice from is your accountant. We look at the five things you want to avoid when choosing a contractor accountancy firm.

What should I do if I want to change my accountant?
If you need to change accountancy providers for whatever reasons, we look at the steps you should take to ensure the handover goes smoothly.

What is an IR35 accountant?
In recent years, an increasing number of contractor accountancy providers have marketed themselves as 'IR35 accountants'. Have these firms suddenly been gifted a silver bullet against IR35, or is this just a marketing phrase?

How to choose a contractor accountancy firm
Selecting the right contractor accountant to use is an essential part of the process of starting out in the contracting world. Here are some top tips.

Accountants for contractors - what do they do?
If you are a limited company contractor, you will need to hire a specialist accountant to handle your affairs. What can you expect them to provide for their monthly fee?

What does a contractor accountant do?
What should limited company contractors typically expect their accountants to do?

IT Contractor Accountants - Find the best Accountant