Switching accountants can feel like a daunting prospect, but the transition does not need to be complicated or disruptive. With the right support, your first 90 days with a new accounting provider can lay the groundwork for a long-term relationship that adds value to your business.
This article outlines what happens when you change accountants, with examples of how PKF Smith Cooper, a leading Midlands-based accounting firm, applies these stages in practice.
A seamless handover from your current accountant
Once you have chosen a new accounting provider, they should take responsibility for managing the transition of your accounts on your behalf. This process tends to include:
- Contacting your previous accountant to request professional clearance
- Handling the transfer of financial records, tax returns, payroll data and bookkeeping files
- Ensuring all HMRC authorisations are updated
- Updating Companies House and the company registered office as required
- Checking for any outstanding deadlines or compliance risks
The handover stage tends to be the most misunderstood and worry-inducing part of changing accountants, with some businesses wrongly believing they will be responsible for transferring financial information between providers.
In reality, your involvement in the handover should be minimal, typically limited to signing an engagement letter and confirming permissions.
At PKF Smith Cooper, we manage the full handover, communicating directly with your former accountant to ensure continuity and avoid missed deadlines.
Your initial meeting
Your initial meeting with a new accountant is an essential first step in building an effective relationship. This session should help them understand:
- Your business model and goals
- Any immediate challenges or concerns you face
- Your preferred way of working and communicating
- The systems and software you currently use
- Appropriateness of your remuneration strategy and business structure
This information enables your advisors to tailor the support you receive from the outset.
At PKF Smith Cooper, our initial meetings are designed around ensuring our priorities are aligned with yours. This early alignment is essential when you begin working with a new team.
Reviewing your financial foundations
During your first month, your accounting provider should carry out a detailed evaluation of your financial position. This typically includes:
- Assessing your current accounting systems
- Reviewing tax efficiency and identifying any quick wins
- Checking for compliance gaps or risks
- Understanding your cash flow patterns
- Reviewing management information and reporting quality
This evaluation helps to establish a clear starting point and highlight any areas for improvement. It is also an important stage in what happens when you change accountants, as it ensures your new provider fully understands your financial landscape before offering advice.
PKF Smith Cooper’s Business Services team will look to identify opportunities to streamline processes and enhance reporting at this review stage.
Introducing proactive advisory support
If you have chosen the right accounting provider, you should notice a shift to more proactive support after switching accountants. Your first 90 days might include:
- A review of your forecasting and budgeting approach
- Recommendations for improving cash flow
- Guidance on tax planning opportunities
- Recommendations on digital tools that could streamline your processes
- Sector specific insights relevant to your business
For many businesses, this shift is one of the most significant parts of what happens when you change accountants and move to a more advisory-focused provider.
For PKF Smith Cooper clients, this is where our advisory led approach begins to add value beyond compliance. Find out more about how our advisory services can fuel business growth in our recent article.
Setting up reporting processes, tailored to your preferences
Clear, timely information is essential to support decision making in any business. Early in the relationship, your new accountant should look to establish:
- The importance of Management Information in your business
- The timing of this
- What KPIs are most beneficial to your business
- The level of detail you require in your reporting
This ensures you benefit from access to up-to-date information whenever you need it, rather than exclusively at year-end.
At PKF Smith Cooper, our Business Services experts work with new clients to find a reporting rhythm that supports both their operational needs and strategic goals.
Planning for the year ahead
By the end of your first 90 days with a new firm, you should have gained:
- A clear understanding of your financial position
- A tailored advisory plan aligned to your goals
- A reporting structure that supports better decisions
- A dedicated team who understands your business and your goals for the future
- Confidence that your compliance obligations are under control
These components are all essential in building a collaborative, future-focused relationship that can support business growth as well as ensure compliance.
Choosing the right accounting provider
If you are considering changing accountants, understanding what to expect during those first 90 days can help you choose the right provider. A smooth, structured onboarding process is a strong indicator of a firm that values long-term partnerships, not just compliance.
If you are a business based in the Midlands, get in touch with us to find out more about how making the move to PKF Smith Cooper can set up your business for success.
