Changing Accountants: What to Consider Before Making the Move

You may be considering a change because the business has grown, ownership arrangements have become more involved, or you need advice before making significant decisions.

Perhaps the concern is more immediate. You are unsure who is responsible for a matter, cannot obtain a clear explanation or do not know what the current engagement includes.

Before choosing another accountant, identify what needs to improve. A different firm or lower fee will not necessarily resolve an expectation that has never been made clear.

Understand what is prompting the review

Be specific about the gap between what the business needs and what it currently receives.

You might need clearer explanations of the accounts, earlier discussion of tax obligations or support while considering a property purchase or ownership change.

Then distinguish a service problem from a difference in expectations. An engagement focused on annual accounts and returns may not include ongoing transaction advice. Equally, uncertainty about work that was agreed deserves a direct conversation.

Where appropriate, discuss the concern with the current accountant. Clarifying responsibilities or revising the scope may resolve it.

If a move still appears worthwhile, that discussion can help you explain what you want from the next relationship without assuming that everything about the existing arrangement was wrong.

Assess the proposed relationship, not just the firm

Ask who would take responsibility for your work and who you would deal with when a question arises.

The person you meet initially may not handle every part of the engagement. What matters is understanding how responsibility, communication and review would work.

Useful questions include:

• Who will understand the business and maintain the overall relationship?
• How are questions received, allocated and followed through?
• What happens when the usual contact is unavailable?
• What experience does the accountant have with circumstances relevant to this business?
• When would another adviser need to be involved?

Discuss a real upcoming decision. Notice whether the prospective accountant asks about ownership, timing, records and commercial purpose before reaching a conclusion.

Firm size alone is not a useful measure of fit. Focus on the proposed working relationship and the capability relevant to your circumstances.

Compare scope and fees on the same basis

Before comparing prices, establish what each proposal covers.

Clarify which entities are included, what work is ongoing and what needs separate agreement. Ask how additional advice, historical corrections or a transaction already underway would be scoped and charged.

Also establish what information you must provide and when. The accountant needs to know whether records are current and whether someone else handles bookkeeping or payroll.

A clear annual accounting engagement helps both parties understand their responsibilities. For a proposed move, also ask whether reviewing inherited records or establishing opening balances involves additional work.

The objective is not the lowest quoted number. It is an understood scope, a clear fee basis and a reasonable picture of the work ahead.

Agree who will complete unfinished work

There is no universally best point in the year to change accountants. The practical timing depends on what is outstanding and what decisions are approaching.

Identify unfinished annual accounts, returns, BAS, ATO correspondence and any transaction receiving advice.

For each matter, establish its status, relevant deadline and who is expected to complete it. Clarify whether the current accountant will finish work already started or whether the prospective accountant is being asked to take it over.

Do not assume either firm has accepted responsibility because a change has been discussed.

A change of accountant does not remove the business’s existing obligations. Continuity depends on clear agreement about the work, the information needed and who will respond to queries during the handover.

Discuss records, access and context

A responsible handover involves more than copies of the latest tax returns.

Ask what the prospective accountant needs to understand the current position. This may include prior accounts and returns, opening balances, asset records, owner loan balances and advice relevant to arrangements that remain in place.

Clear business records help, but balances may still need explanation. The incoming accountant should understand what supports them, not simply carry them forward without context.

Discuss permission for communication between the firms and the records that can be provided. Do not assume that every working paper, software subscription or access arrangement transfers automatically.

Clarify who controls the accounting subscription, who needs access and what records must remain available. ATO representation and access to the business’s accounting software also need separate consideration.

Handle confidential information deliberately

Ask how documents will be shared, who will have access and how information about related entities or individual owners will be handled.

Permissions should reflect the relevant clients and information. A business relationship does not remove the need for care with private financial records.

The prospective accountant needs enough context to take over responsibly, but the exchange should have a clear purpose and appropriate authorisation.

What to bring to an initial discussion

Bring:

• Current structure and ownership details.
• Recent financial statements and tax returns.
• The existing engagement scope, if available.
• A summary of outstanding work and correspondence.
• Details of accounting systems and current access arrangements.
• Your main concerns and upcoming business decisions.

If you are considering a move, discuss the situation with Jaha. Begin with what the business needs and what continuity would require, before deciding whether a different accounting relationship is the right step.