When to Switch Accountants: Recognizing the Right Time for a Change

As your business grows, so do your accounting needs, and it’s possible your current accountant isn’t meeting your expectations. If you’re feeling frustrated, overwhelmed, or constantly compensating for their shortcomings, it may be time for a change.

Whether you run a small, medium, or large business, there are plenty of valid reasons to seek a new accounting partner. From outdated practices and lackluster performance to inaction and poor communication, these issues can hold your business back.

Let’s explore the top 10 reasons why switching to a new accountant could be the smartest move for your business.

1. Highly expensive

Highly expensive

Switching to a new accountant might be a better option if you are willing to save business costs and have a healthy financial lifecycle. 

An accountant living in the UK might be getting a higher pay than one in India. Area of expertise and experience also must be considered in deciding your accountant’s salary.  

You have to check if you are not paying your accountant more than what is reasonable. 

If you are confused or don’t know what to do next, compare your accountant’s salary demand with the pay of accountants in your local area to get a clear idea.

But remember, don’t ever pay blindly to your accountant.

2. Hard to communicate

Is your accountant also taking days to reply to your query? Or not active while working most of the time? Here is a good sign to change your accountant. 

An accountant may not be busy on a call every time, but not answering your e-mails the same day after a regular follow-up is not a healthy attitude. 

If you do not receive any positive response from your accountant further, it’s time to switch to a better option now.

3. No proper clarification

If your accountant cannot clarify matters for which they are responsible or shows a lack of interest in simplifying things, changing your option will work.

Spending your money cautiously on an accountant who can clarify things that you are not skilled at or lack expertise in is quite necessary.

You may also feel irritated after one time if your accountant lacks transparency. Look for a quality change to ensure you get a simple clarification on every single issue.

4. Lack of a personalized connection

Have you given up making a healthy and positive personal relationship with your accountant? Switching to a better option might be good for you.

Changing your accountant can give you a good experience of personalized connection and better compatibility.

Discussing all your financial worries with a person you have a good bond with can be a fruitful transition.

With an ideal accountant, managing cash flow issues and tough billing processes becomes a cup of tea. Switch to a new accountant to enjoy a flexible and healthy personal relationship.

5. Not skilled in the latest technologies

Not skilled in the latest technologies

If your accountant lacks creativity or has not adapted to the latest technologies, changing the accountant is far better than just beating around the bush. 

If you are spending good money to manage your accounting processes, expecting positive results further is obvious. An accountant with a good command of the latest software can bring expertise to your table.

Inputting numbers quickly and updating expense bills can be at your fingertips with your new accountant. Here, don’t withdraw yourself from exploring a better option.

6. Low-quality advice

Your accountant may be expertly managing things but can he give good professional advice to you when asked for? If not, don’t hesitate to try a change. 

You may need additional advice from your accountant to resolve a financial problem or outline a systematic plan. If you are also looking for advice on new tax or payroll laws particular to your industry, ensure to change your accountant.

The present accountant working with you may need to match these skills. You can suffer a severe loss if you do not make a proper decision on time.

7. Casualty in behaviour

Is your accountant also showing casual behaviour with heavy responsibilities? If you don’t find your accountant a fit role to contribute to the business growth, it’s time for a change.

Pointing out financial issues and resolving them on time is what a new accountant will do for you without any conflicts. Don’t get after your accountant for small things. Ensure you get an active response and justification for every mistake.

Letting things go and just acting irresponsibly would not work for long. If the casual attitude of your account remains the same, don’t think twice about switching to a new option.

8. Your business has expanded

Your business has expanded

Your current accountant may not be an expert in managing large business accounting needs. If your business has also outgrown and you want a scale-up, look for a better option in the market.

Your accountant may also don’t have the talent to handle financial processes on multiple levels. It’s quite good to be prepared with a backup plan for future.

You might have a mindset to collaborate with an MNC for a smooth accounting process. Here, changing your accountant can turn your game soon.

9. A small conversation is also too costly

If you are charged a high cost even for a small conversation with your accountant, it’s time for a change. Smooth communication with your accountant is essential, and if you’re facing issues with this, it’s a clear sign to move on. You should be able to enjoy free-flowing interaction on multiple issues without worrying about being charged for every second.

Imagine having a healthy conversation with your new accountant at a reasonable cost. Avoiding charges for every second of your communication will be a relief with your new option. Slow down and consider making a change to ensure better communication and fair pricing.

10. Degraded value

Your current accountant may lose the value after a certain period. If your accountant regularly fails to manage invoices flawlessly, switch to a better talent now. 

With time, you also might have dissimilarities with your accountant on multiple financial issues. Having a new accountant onboard as soon as possible can make your financial process easy.

How to tell your accountant you are leaving?

How to tell your accountant you are leaving?

Letting your accountant know you’re switching to someone new can feel a bit uncomfortable, but handling it professionally and respectfully will ensure a smooth transition.

Start with a phone call or an in-person meeting to explain your decision. Be clear and honest about why you’re making the change while aiming to leave on good terms. Follow up with a polite email confirming your decision, the effective date, and outlining any services or documents that need to be transferred.

Your new accountant can assist as well by sending a professional clearance letter to your current accountant, requesting all the necessary paperwork to make the handover seamless.

Keeping the conversation professional ensures a positive and stress-free transition for everyone involved.

Steps to Changing an Accountant

Well, switching to a new accountant is quite easy. Make sure to end up with them under positive conditions. Don’t let them feel unvalued or less capable. 

You can make a personalized connection with your accountant to say your point softly. Avoid communication gaps on any level and make it a smooth process.

Ask your accountant for a disengagement letter about the workflows managed to date after having a healthy conversation about the business growth.

Now, what’s next? 

A professional clearance letter has to be given by your old accountant to the new ones to complete the necessary paperwork.

Here, you have to give authority to your new accountant to start with their roles as soon as possible, such as filing tax returns on your behalf, etc.

You can follow these simple processes to change an accountant

  1. Review your current contract.
  2. Notify your existing accountant professionally via call or email.
  3. Gather all necessary financial documents.
  4. Ensure a smooth handover.
  5. Research and select a new accountant.
  6. Update your financial records.
  7. Inform relevant stakeholders of the change.

You can also read our guide on How to Find a Good Accountant.

Considering Switching Your Accountant?

If you’re uncertain about making the change, Invedus is here to assist. With extensive experience in managing the accounting needs of businesses, Invedus is your trusted partner.

Hire an accountant from Invedus to manage your finances and streamline your projects, ensuring stable and high-quality financial management.

Invedus matches your accounting needs with top talent, offering the perfect choice for your company. Don’t hesitate to seek a quality solution for your business with Invedus.

Contact us at invedus.com or email at info@invedus.com for any further inquiries. 

About Bhaskar

Bhaskar Singh is an experienced legal researcher known for his significant contributions to the development of democratic institutions, environmental awareness, and the criminal justice system. His expertise in research and proficiency in using advanced AI tools empower him to drive meaningful change across various fields.