Before a Major Business Change: When It Is Worth Speaking With Your Accountant

You may have a proposal rather than a finished plan. Another person wants to buy into the business, suitable premises have become available, or a buyer has approached you.

The useful time to involve your accountant is often while that proposal is taking shape, not only when the resulting transaction needs to be recorded.

An initial discussion can clarify the financial questions and what information is missing. It does not mean every business decision needs a formal advisory engagement.

Recognise when the proposal deserves a discussion

Consider raising a change that affects ownership, commits substantial funds or introduces responsibilities the business has not previously managed.

Common examples include:

• Introducing another owner, transferring an existing interest or planning family succession.
• Buying or selling a business or premises.
• Taking on finance, employing staff or changing the way the business operates.

The size of a transaction is not the only consideration. A proposal involving several entities, unfamiliar terms or a different use of an existing asset may deserve attention even where little money initially changes hands.

Start by explaining what you want to achieve commercially. The accountant needs that context before considering the accounting and tax questions.

Explain how far the decision has progressed

Exploring an idea is different from agreeing terms, signing documents, moving money or completing a transaction.

While a proposal remains open, the discussion can consider its financial implications alongside the terms being negotiated. When buying premises for the business, that might include the proposed purchaser and funding. When selling a business or commercial property, it might include what the buyer would acquire and who would receive the proceeds.

As discussions progress, be clear about what has already been agreed and what remains unsettled.

Not every commitment is irreversible. However, once documents have been signed, your solicitor may need to assess their effect before alternatives can be considered. That is different from assuming the accountant can simply change how the transaction is recorded afterwards.

Give the accountant the commercial and ownership context

A useful opening explanation covers:

• The purpose of the proposal and what would change.
• The people and entities involved.
• Who owns the relevant business assets or interests.
• How the proposal would be funded.
• The intended timing and any known deadlines.

You do not need every answer before making contact. Identifying uncertainty is part of the discussion.

For example, you may know the purchase price but not which entity would borrow. You may have agreed on an ownership percentage without discussing whether payment goes to the business or an existing owner. Those gaps help define the work needed.

Understand what the first conversation can achieve

Early accounting input can help frame questions about affordability, cash flow, accounting and tax treatment, ownership implications and supporting records.

It can also identify assumptions that need testing. Expected future revenue, available cash and the amount personally available after a sale are different matters. They should not be treated as settled simply because a headline figure has been discussed.

The first conversation may establish that a limited clarification is sufficient. It may instead identify a need for further records, a separately scoped review or specialist advice.

A short discussion should not be mistaken for a complete technical assessment. Agree on what further work is proposed, who will undertake it and how the scope and fees will be confirmed.

Your accountant’s role complements the other advisers involved. A solicitor addresses legal rights and documents. A lender makes credit decisions, while a broker can discuss finance options. Employment, licensing, valuation or other specialists may also be needed.

None replaces the owner’s commercial judgement.

If commitments are already underway

Explain the current position accurately and provide the documents that exist, including signed agreements and relevant correspondence.

Identify payments already made, dates approaching and matters still open for discussion.

Useful advice may still be possible. The focus becomes understanding the position, identifying remaining decisions and addressing the accounting, tax or documentation work required. There is no benefit in withholding information because the discussion did not happen earlier.

What to bring

Bring a plain language summary of the proposal, draft terms or correspondence, current structure and ownership details, recent financial information, expected funding and known deadlines.

Include your main question, even if it is simply: “What should we understand before going further?”

Speak with Jaha about the proposed change and the stage it has reached. The aim is to identify the right questions and agree on any work needed before the next commitment.