How Easy Is It to Switch Accountants? Your Complete Guide to Making the Change

Switching accountants often feels daunting, but it doesn’t have to be. Many business owners, rental property investors, and start-ups delay making this important decision because they assume it will be complicated, time-consuming, or disruptive to their operations. The reality is quite different – switching accountants can be quick, simple, and surprisingly stress-free when you work with the right firm.

If you’re considering a change in your accounting services, whether due to poor communication, high fees, limited services, or simply outgrowing your current provider, this guide will walk you through everything you need to know about making the switch smoothly and efficiently.

Why Do Businesses Switch Accountants?

Before diving into the process, it’s worth understanding the common reasons why businesses make the change:

Communication Issues: Your current accountant is hard to reach, slow to respond, or doesn’t explain things clearly.

Limited Services: You’ve outgrown your current provider’s capabilities or need additional services they don’t offer.

Pricing Concerns: Unexpected fees, lack of transparency in pricing, or simply poor value for money.

Technology Gaps: Your accountant uses outdated systems or doesn’t integrate with your preferred software.

Personal Service: You want a more personal relationship with dedicated support rather than being passed between different staff members.

Business Growth: Your business has evolved, and you need an accounting partner who can support your current and future needs.

The Simple Switch Process

Contrary to popular belief, switching accountants is straightforward when you work with a professional firm that handles the transition for you. Here’s how the process typically works:

Step 1: Needs Assessment

The first step involves understanding your specific requirements and ensuring Business Like NZ is the right fit for your business.

During this phase, you’ll discuss:

• Your business structure and trading activities
• Current accounting services and what you’d like to change
• Your annual turnover and business complexity
• Filing obligations including GST, PAYE, and FBT requirements
• Software preferences and integration needs
• Communication preferences and expectations
• Budget considerations and pricing structure

This conversation can happen in person, over the phone, or via video call – whatever works best for your schedule. A good accounting firm will provide you with clear recommendations and a fixed-price quote within one business day, giving you transparency from the start.

Step 2: Agreement and Onboarding

Once you’ve decided to proceed, the onboarding process begins:

Documentation: You’ll complete a short onboarding form with your business details and requirements.

System Setup: Your new accounting firm will set up your details in their systems and establish connections with IRD and any software you use.

Transition Management: Here’s where a good firm really shines – they’ll handle the communication with your old accountant, notifying them of the change and requesting the transfer of your files. This removes a potentially awkward conversation from your plate.

The entire process typically takes just a few days, and you can continue operating your business as usual while the transition happens in the background.

What Your New Accountant Needs

To ensure a smooth transition, your new accounting firm will need access to certain information and documents:

Previous Year’s Accounts: Complete financial statements and tax returns from recent years.

Current Year Records: Up-to-date bookkeeping records, bank statements, and transaction details.

Tax Information: IRD correspondence, tax positions, and any ongoing matters.

Proof that you exist: Identification for Directors, Shareholders and Trustees.

Business Registration Details: Company or trust documentation, IRD numbers, and registration certificates.

Software Access: Login details for accounting software, payroll systems, and banking platforms.

Outstanding Matters: Information about any pending issues, deadlines, or compliance requirements.

Most of this information can be obtained directly from IRD and your previous accountant, so you won’t need to gather everything yourself.

Managing the Timing

Timing your switch can impact how smooth the transition is:

Best Times to Switch:

• After completing your annual accounts
• Before a new financial year begins
• When you have a natural break in business activity
• Well before major deadlines like GST returns or tax filings

Times to Avoid:

• Just before important filing deadlines
• During busy periods for your business
• When major business changes are happening simultaneously

However, if you’re experiencing serious issues with your current accountant, don’t delay the switch just for timing – a professional firm can manage transitions at any time of year.

Cost Considerations

Many business owners worry about the costs involved in switching accountants. Here’s what you should consider:

Setup Costs: Some firms charge setup or onboarding fees, while others include this in their service. At Business Like NZ, we will let you know if there would be an onboarding fee.

Final Bills: You’ll need to settle any outstanding fees with your previous accountant.

Overlapping Services: There might be a brief period where you’re paying both accountants, but this is usually minimal.

Long-term Savings: Better service, more efficient processes, and transparent pricing often result in cost savings over time.

Value Assessment: Consider the total value you’re receiving, not just the price. Better advice, proactive communication, and additional services can more than justify slightly higher fees.

Potential Challenges and How to Overcome Them

While switching is generally straightforward, being aware of potential challenges helps you prepare:

File Transfer Delays: Sometimes previous accountants are slow to transfer files. A professional new firm will follow up persistently and can often obtain information directly from IRD if needed.

Missing Information: Gaps in records or missing documents can slow the process. Starting with a thorough needs assessment helps identify these early.

Software Complications: Integration issues with existing software can arise. Choose an accounting firm experienced with your preferred platforms.

Communication Breakdown: Misunderstandings between old and new accountants can occur. Having a clear handover process managed by your new firm minimizes this risk.

Deadline Pressures: Switching close to important deadlines can create pressure. Planning ahead and clear communication help manage this.

What to Expect from Your New Accounting Firm

A professional accounting firm should make the switching process as easy as possible by providing:

• Transparent Pricing: Fixed-price quotes with no hidden fees
• Personal Service: A dedicated accountant who understands your business
• Modern Technology: Current software and systems that integrate with your tools or solve business challenges
• Proactive Communication: Regular updates and advice, not just reactive service
• Comprehensive Services: Everything from basic compliance to strategic business advice
• Flexible Communication: Support via phone, email, video calls, or in-person meetings

Making the Most of Your New Relationship

Once you’ve successfully switched, set yourself up for long-term success:

Establish Clear Expectations: Discuss communication preferences, reporting requirements, and service levels upfront.

Regular Reviews: Schedule periodic meetings to assess how the relationship is working and identify opportunities for improvement.

Stay Organized: Maintain good record-keeping practices to make your accountant’s job easier and more cost-effective.

Ask Questions: Don’t hesitate to seek advice or clarification – a good accountant wants to help you succeed.

Provide Feedback: Let your accountant know what’s working well and what could be improved.

Frequently Asked Questions

How long does it take to switch accountants?
The actual switching process typically takes 3-5 business days once you’ve made the decision. However, the full transition including file transfers and system setup can take 1-2 weeks.

Will switching disrupt my business operations?
No, a professional accounting firm will manage the transition in the background while you continue operating as usual. You might need to provide some information, but the disruption should be minimal.

What happens if my old accountant won’t release my files?
While most accountants are professional about transfers, some may delay if there are outstanding fees. Your new accountant can help resolve these issues and can often obtain necessary information directly from IRD.

Do I need to pay both accountants during the switch?
You’ll need to settle any outstanding fees with your previous accountant, and there might be a brief overlap, but this is usually minimal and shouldn’t involve paying for duplicate services.

Can I switch accountants during the middle of a financial year?
Yes, you can switch at any time. While some times are more convenient than others, a professional firm can manage mid-year transitions smoothly.

Will I lose my business history and records?
No, all your business records and history will transfer to your new accountant. This includes previous year’s accounts, tax positions, and ongoing matters.

How do I know if the new accountant is right for my business?
Look for clear communication, transparent pricing, relevant experience with businesses like yours, and services that match your needs. A good initial consultation should give you confidence in their capabilities.

What if I’m not happy with the new accountant either?
While this is rare when you choose carefully, you can switch again if needed. However, frequent changes can be disruptive, so it’s worth investing time in choosing the right fit initially.

Do I need to inform IRD about the change?
Your new accountant will typically handle notifications to IRD and other relevant parties as part of the transition process.

Can I switch back to my old accountant if things don’t work out?
Technically yes, though this would involve another transition process. It’s better to choose carefully the first time and give your new accountant a fair chance to prove their value.

Ready to Switch Accountants?

Switching accountants doesn’t have to be complicated or stressful. With the right accounting partner, the process is simple, quick, and handled largely behind the scenes while you focus on running your business.

The key is choosing an accounting firm that:

• Offers transparent, fixed pricing
• Provides personal, dedicated service
• Uses modern technology and systems
• Has experience with businesses like yours
• Makes the switching process easy and stress-free

If you’re tired of poor communication, unexpected fees, or limited service from your current accountant, don’t let the fear of switching hold you back. The right accounting partner can transform your experience and provide real value to your business.

Take the Next Step Today

Ready to experience what professional, friendly, and efficient accounting service looks like? We make switching simple by handling all the complex parts for you, including contacting your current accountant and managing the file transfer process.

Whether you’re a start-up looking for your first professional accounting service, a small business that’s outgrown your current provider, or a rental property owner seeking better value and service, we’re here to help.

Contact us today to discuss your needs and discover how easy switching can be:

• Phone: 09 262 0726 for a friendly chat about your requirements
• Email: Get in touch to arrange an initial call
• Office Visit: Give us a call to arrange a time for a face-to-face discussion (we can accommodate an online meeting).

Don’t let another month go by with accounting service that doesn’t meet your needs. Take the first step toward better service, transparent pricing, and professional support that helps your business thrive.

Get your free quote today and discover why businesses Business Like NZ Ltd for their NZ accounting and taxation needs.

Learn more about our services below:
Small Business Accounting Services
Rental Property Accounting