I frequently get asked how easy it is to switch your accountancy to Switchfoot and what is involved.

Switching accountants in the UK is straightforward, but it is essential to manage it carefully to avoid disruptions to your financial affairs.

Here is a step-by-step guide:

Be clear about the reasons for the Switch

• Are you looking for improved service, new services, better value, face-to-face meetings, local area knowledge, referrals, specific expertise, or better alignment with your values?
• Your main or trusted contact with the firm has moved to another firm, your accountant is winding down to retirement, or the firm has been consolidated.
• Consider speaking to your current provider to see if it is something they could accommodate.
• Knowing your reasons will help you choose a new accountant who meets your needs.

As the biggest driver, switching accountants to save money is often the wrong decision, and I would be cautious about working with the cheapest accountants on the market. I have seen many horror stories, especially when you are a new business.

You will also rarely find that you reduce your fees and improve the level of service. You need to decide which driver is best for you.

Timing

The timing of the move needs some thought, and you need to pick the right time for you.

Do you pay monthly, so it could be argued that waiting until the end of the year is better? Often, monthly fees are not refundable if you leave through the year and are used to cover the time spent finishing any work off and going through the formal process of off-boarding you to the new provider.

Moving midyear can lead to onboarding or alignment fees, as the new accountant will invest a lot of time getting you on board, especially if there is much to do.

You need to consider when is the best time for you to invest time in the process.

There is no right answer to when is the best time.

Research and Selecting a New Accountant

My suggested areas to look at are:

• Look for a chartered or certified accountant with experience and interest in your industry.
• Check for accreditations like ICAEW, ACCA, or CIMA.
• Do they offer the services you need to achieve your goals and dreams?
• Look for an accountant or firm that fits your values or preferred approach.
• Read reviews or ask for recommendations.
• Set up a meeting with the shortlist and consider if you are a good fit for their firm.
• What is included in the fee, and what must you pay extra? Are Xero fees included? What does the accountant expect you to do?
• Do they offer training and quick query service?
• Do they offshore or outsource services?
• What are their sustainability credentials? Are they a B Corp?
• How long does it take to reply to emails?
• How will you be dealing with and how often?
• Will they collaborate with your other advisers?
• What are your future plans and goals – can the firm grow with you?
• Is there a waiting list?
• How long did it take them to send a proposal and answer your queries?
• Once you have decided, the new accountant must follow a formal process.

Notify Your Current Accountant

It is important to follow the correct procedure to ensure a smooth transfer.

• Inform your current accountant in writing that you are ending the relationship. Try not to burn bridges, as you may need their help in the future.
• Check your contract for any notice period or obligations.
• Request (download) copies of all necessary financial records, such as accounts, tax returns, payroll, and correspondence.
• They will send you a disengagement letter to confirm the process and highlight any outstanding fees and work to be conducted.
• Make sure you pay any outstanding fees; otherwise, it can slow down the process. This fact is often included in the professional clearance letter and will be off-putting to the new accountant.
• You must move your registered office ASAP if you use the current accountant’s address.
• They will resign any authorisations with HMRC.

Engage the New Accountant

• Accept the proposal from the new accountant and sign the engagement letter outlining the services and fees with your new accountant.
• They will often request that you pay an onboarding or alignment fee.
• They will need to formally contact your previous accountant directly to request professional clearance and access to your financial records if held by the accountant. This is done to ensure a smooth handover and ensure everyone knows their responsibilities.
• You will need to give the new accountant adviser access to relevant systems, like bookkeeping software (e.g., Xero or QuickBooks), and we suggest you remove all users who are no longer required.
• As part of the money laundering checks they conduct, you will be asked to provide copies of all directors’ and shareholders’ passports and driving licenses and confirm the business’s shareholders.
• You will need to supply copies of last year’s full accounts, tax computations, and Tax returns, as well as your personal Tax returns.

Provide Authorisations with HMRC

Authorise your new accountant with HMRC via your Government Gateway account or by completing Form 64-8.

This allows them to act on your behalf for tax matters.

 

Please contact us if you have any questions about switching your accountancy to Switchfoot Accounting.