Are you thinking of changing accountants but concerned about the level of complexity involved?
We understand this decision is not easy, but as your business structure and financial needs grow, the circle of professional expertise around you may also need to grow. It’s natural to have concerns. Will the new accountant be more responsive and proactive? Will you find someone with the industry knowledge that your business needs? Understanding your reasons will help you choose a new accountant that better suits your needs.
And we’re here to help. Please give us a call for an obligation free chat about what’s involved in changing accountants. In the meantime, here are 6 steps to help you make a seamless transition to a new accountant.
Call us for a complimentary consultation.
1. Find a new accountant
Once you’ve decided to change accountants, research and choose a new accountant who will meet your specific needs. Consider factors such as:
- Industry experience – if you own a business, selecting an accountant with experience in your industry will provide many benefits. Colledges specialise in medical, pubs and hotels, legal, automotive, building and trades, and more, and this means we give our clients a more thorough and focused service.
- Services offered – what services do they offer and can they do everything you need in house? Services such as tax strategy and compliance, business advisory services, SMSF management, and perhaps even bookkeeping are important.
- Their qualifications – ensure they are a registered tax agent with the Tax Practitioners Board (TPB) and a member of a professional body such as CPA Australia, Chartered Accountants Australia and New Zealand (CA ANZ), or the Institute of Public Accountants (IPA).
- Fees and pricing structure – review their pricing and fee structures up front.
- Technology and software – if you use accounting software like Xero, MYOB, or QuickBooks, ensure your new accountant is proficient in it.
2. Notify your current accountant
Once you have selected a new accountant, it’s good etiquette to notify your current accountant of your decision to leave. We recommend sending an email or letter (after an initial phone call) which includes the following:
- Your intent to terminate their services
- The effective date of termination
- A request to transfer necessary financial records to the new accountant
- Any outstanding fees or work that needs to be settled
3. Gather your financial documents
Before finalising the change, collect all essential documents, including:
- Previous tax returns and financial statements
- BAS and GST records (if applicable)
- PAYG withholding records (if you have employees)
- Any ongoing accounting work or reports
- Logins and access to accounting software (if applicable)
4. Engage the new accountant
Your new accountant will typically send an engagement letter outlining their terms, scope of services, and fees. Read this document carefully before signing.
5. Professional clearance letter
It is common practice in Australia for your new accountant to send a professional clearance letter to the outgoing accountant. This letter includes:
- Confirmation of any ethical or professional reasons why they should not take on your work
- A request for relevant records and documentation
Most professional accounting bodies require outgoing accountants to respond within a reasonable time and provide the necessary documentation unless there are outstanding fees.
6. Inform the Australian Taxation Office (ATO)
Ensure that your new accountant is authorised with the ATO. This involves:
- Signing a new Tax Agent Nomination form to allow your new accountant to represent you
- Removing the old accountant’s authority on the ATO Business Portal (for businesses)
By following these steps, you’ll have a smoother and more efficient transition to a new accountant and most importantly you’ll minimise disruptions to your financial affairs.
Why change to Colledges Accountants + Advisors?
Experience The Colledges Way.
- Over 50 years accounting expertise, taxation strategy and business advisory services. Specialist industries include medical, pubs and hotels, legal, automotive, building and trades, and more.
- Longevity and history with third generation clients.
- We’re caring, responsive, approachable, compassionate and respectful.
- We’re straight talkers, you always know where you stand with your finances and we’re easy to get in touch with.
Please call us if you have any questions or need further information.
Give us a call for a complimentary conversation about changing accountants. We’re here to help you. You can contact us on 9851 6500 or email us at hello@colledges.com.au to book a time.
