Changing Accountant

[Marion]

This is maybe a naive question, but is it straightforward to change to a different accountant?
We've been with the same one since we started in the business 20 years ago, but for quite a while I've been considering a change.
Nothing wrong with our current one I have to say, except that I believe they are really too big a concern for us.
We have very little contact with them except for the year end and tax returns - I do all of our accounts - and I feel sometimes that a closer relationship with our accountant would be beneficial.
I've been just a bit reticent about making a switch - better the devil you know as it were - and wondered if there is a good time eg at the start of the business year.

 

[stuarty]

Hi Marion,

Why do you think it would benefit you?

I know naff all about accountants (except that I married one) or accounting - its something I just cannot get my head around.

I pay them (not her) to do stuff and the last thing I want is to have a closer a relationship than I already have (maritally and professionally).

Closer relationships to me mean more fees! (And a sore head most of the time.)

Stuart

 

[Boxby]

The start of a new year is a naturally better place.

With big firms you end up with a partner that you see once a year, but the people working on your accounts/tax/advice on a day to day basis as assistants working under managers. With a smaller firm the partner should be more involved in your account (but work will still be done via assistants).

Big firm v small firm is a whole debate with pros and cons on each side. Big firms have in house specialists for VAT, Tax, finance etc. Small firms usually work with advice lines/groups etc to cover such services.

I would say it depends on what you are planning to do with your business, if you're just steady organic growth, and your industry is nothing specialist then a smaller firm would do fine. But if you've got some acquisitions planned, or are looking expanding rapidly etc, or taking on outside investors etc, then it may be best sticking with the bigger firm.

 

[Marion]

Thanks for that advice.
That's exactly why I'm thinking about changing. The accountant firm has grown over the years to be a large concern,and I feel we would benefit from a smaller company to deal with the run of the mill stuff. We've nothing planned in the way of acquisitions and although we have grown reasonably well ourselves as a business, we are still pretty small fry.

 

[Boxby]

With smaller accountants the best source is recommendation.

Look someone who is very active in keeping up to date, training etc. Lots of accountants are now working together in networks/practise groups, to share training costs etc, but it also means that they (and you) get a bigger pot of brains to call on should you have any needs which move away from the normal & average (ie specialist tax planning or raising finance etc). This can also be handy in the event of tax/vat inspections.

i'd also specifically look for a practise that uses your computerised accounting practise. Because that just makes everything much simplier.

It's very easy to change. Your new accountant simply sends a standard letter to the old accountant requesting correspondence, opening balances, working papers etc. And as long as you're all paid up with the old accountant it should be handed over quickly and simply. Its all very normal.

 

[Marion]

Thanks, Boxby. "Normal" is the word I want to hear. I have a recommendation for a local accountant, but I will check out the accounting system they work with - I use Sage - and also check how up to date they are with things.

 

[Andrew Bourke]

Hi Marion,

If you are still looking around for a new accountant, I can heartily recommend somone for you, as having met her, she is an excellent accountant and knows her stuff, very reasonable rates and easy to get on with. Its her own business and she is ACMA, withgood IT skills and knowledge as well.

If you are interested, please give me a shout and I will pass you on her details.

Regards

Andrew