June 25, 2026June 2, 2026UncategorizedMerranti

Switching Accountants: What to Check Before You Move Your Business Accounts

Switching accountants can feel risky, especially if your accounts, tax return, VAT, payroll or bookkeeping are already in progress.

But a well-managed switch does not need to disrupt your business. The key is to check deadlines, collect records, understand what work is outstanding and make sure the new accountant has the information and authority needed to act.

The most important point is this: do not wait until a filing deadline is close before switching accountants unless the situation is urgent. Moving can still be possible, but it is much easier when there is enough time for the new accountant to review records, request professional clearance, set up software access and confirm what has already been filed.

For wider limited company accounting support, see Merranti’s Limited Company Accounting page.

Why businesses switch accountants

Businesses change accountants for different reasons.

Common reasons include:

slow responses
missed or rushed deadlines
unclear fees
lack of proactive advice
surprise tax bills
poor bookkeeping support
limited VAT or payroll knowledge
no management accounts
weak software support
lack of sector understanding
difficulty understanding reports
business growth beyond the current service
poor communication during year-end accounts

Not every frustration means you need to switch immediately. Sometimes the issue can be fixed with a clear conversation about expectations, service scope and communication.

But if the accountant no longer fits the size, complexity or direction of the business, switching may be sensible.

Suggested future internal blog link once published: How to Choose the Right Accountant for Your Small Business

Check your current deadlines first

Before switching accountants, check every important deadline.

For a limited company, this may include:

Companies House accounts deadline
Company Tax Return deadline
Corporation Tax payment deadline
confirmation statement deadline
VAT return deadline
PAYE payment deadline
payroll submission dates
CIS monthly return deadline
Self Assessment deadline for directors
pension submission deadline

GOV.UK states that private limited companies must prepare annual accounts and a Company Tax Return after the end of the financial year. Annual accounts are usually due at Companies House 9 months after the company year-end, Corporation Tax is usually payable 9 months and 1 day after the Corporation Tax accounting period ends, and the Company Tax Return is due 12 months after the accounting period ends.

If a deadline is close, the new accountant needs to know immediately. It may be better to prioritise the urgent filing first and complete the wider handover afterwards.

Suggested future internal blog links once published:

What Happens If You Miss a Corporation Tax or Companies House Deadline?
How to Prepare Your Business for Year-End Accounts

Understand what work is outstanding

Before moving, list what your current accountant has completed and what is still outstanding.

This might include:

bookkeeping clean-up
annual accounts
Corporation Tax return
VAT returns
payroll submissions
CIS returns
Self Assessment tax returns
management accounts
Companies House filings
confirmation statement
tax planning
software setup
director’s loan account review

You should also check whether any draft accounts, draft tax returns or working papers exist. If work is partly complete, the new accountant will need to understand whether it can be used or whether it needs to be reviewed from scratch.

Do not assume that because you have paid monthly, all work is complete. Monthly fees may cover ongoing support, software, payroll, bookkeeping or accounts spread over the year. The exact position depends on the engagement terms.

Review your engagement letter and fees

Your existing accountant may have an engagement letter or contract setting out notice terms, outstanding fees and what happens when you leave.

Before switching, check:

notice period
unpaid fees
whether annual accounts work is included
whether bookkeeping is up to date
whether software fees are paid by you or the accountant
whether there are exit charges
whether payroll or VAT support ends immediately
whether access to records or software changes
whether there is work in progress
whether professional clearance depends on fees being settled

Outstanding fees can delay handover. It is usually better to understand the position early rather than discovering it when records are needed urgently.

Gather your business records

A clean handover depends on clean records.

You may need to gather:

previous annual accounts
Corporation Tax returns
Companies House filing confirmations
VAT returns
payroll records
CIS returns
Self Assessment tax returns
bookkeeping reports
bank statements
loan statements
finance agreements
dividend vouchers
board minutes
director’s loan account summaries
asset registers
stock records
software login details
HMRC correspondence
Companies House authentication code
current-year bookkeeping records

For record-keeping support, see Merranti’s Annual Accounts page.

Suggested future internal blog link once published: What Records Should a Limited Company Keep? A Simple Compliance Checklist

Check accounting software access

Software access is a common switching issue.

Before moving, check who owns or controls:

Xero, QuickBooks, Sage or other accounting software
bank feeds
receipt capture apps
payroll software
VAT filing access
CIS software
Companies House access
HMRC agent authorisation
cloud document storage
email accounts used for finance
payment platform reports, such as Stripe or PayPal

If the accountant pays for the software subscription, access may need to be transferred or re-created. If the business owns the subscription, the accountant may simply need to be removed and the new accountant added.

Do not leave this until the day you switch. Losing access to records can delay VAT returns, payroll, accounts and management reports.

For software support, see Merranti’s Accounting Software and Cloud Accounting pages.

HMRC authorisation and professional clearance

Your new accountant may need to be authorised to act for you with HMRC.

GOV.UK guidance for professional tax agents states that after registering as a tax agent, the agent must get authorisation from the client to act on their behalf. It also says agents should not use a client’s Government Gateway user ID or access the client’s online tax account directly.

This means the new accountant may need authorisation for services such as:

Corporation Tax
VAT
PAYE
Self Assessment
CIS
Making Tax Digital services

Your new accountant may also request professional clearance from your previous accountant. This is a standard handover process where the previous accountant provides information and confirms whether there are professional reasons the new accountant should not act.

Avoid switching at the worst possible time

There is no perfect time to switch, but some times are easier than others.

Better times to switch may include:

after annual accounts have been filed
after a VAT return has been submitted
after payroll year-end is complete
before the next accounting period becomes too busy
several months before a major deadline
before the business grows into a more complex phase

More difficult times include:

days before accounts are due
during an HMRC enquiry
while payroll is mid-transition
just before VAT return filing
when records are incomplete
when software ownership is unclear
while previous fees are disputed

Sometimes switching urgently is still necessary, especially if deadlines are at risk. But the business should understand that urgent switches may require extra review work.

Check whether the new accountant understands your business

A new accountant should fit your business now, not just your business when it started.

Ask whether they can support:

limited company accounts
sole trader accounts
Corporation Tax
Self Assessment
VAT
payroll
CIS
management accounts
cash-flow forecasting
accounting software
director salary and dividends
sector-specific issues
bookkeeping clean-up
year-end planning

For growing businesses, basic compliance may not be enough. You may need regular reporting, tax forecasts, cash-flow reviews or job costing.

For management reporting support, see Merranti’s Financial & Management Accounts page.

Suggested future internal blog link once published: What Management Accounts Are — and When Your Business Actually Needs Them

Switching accountants for construction businesses

Construction businesses need extra care when switching accountants because CIS, VAT domestic reverse charge, subcontractors, job costing and retentions may all be involved.

Before switching, construction businesses should gather:

CIS contractor records
CIS deduction statements
subcontractor verification records
VAT reverse charge invoices
retention schedules
job costing reports
material cost records
payroll records
subcontractor invoices
work-in-progress details
supplier statements

If these records are incomplete, the new accountant may need to rebuild part of the accounting position before giving reliable advice.

Suggested future internal blog links once published:

Construction Accounting: Common Tax and Cash Flow Issues Builders Face
CIS Tax Explained for Subcontractors and Contractors
Why Builders Need Better Job Costing Before They Can Improve Profit

Questions to ask before switching accountants

Before moving, ask the new accountant:

What services are included?
What is charged separately?
Can you review my current deadlines?
Can you take over bookkeeping software?
Do you support VAT, payroll and CIS?
Will you request professional clearance?
What records do you need from me?
Can you review previous accounts if needed?
How do you communicate during the year?
Will I receive tax estimates before deadlines?
Can you help with management accounts?
How will the transition be managed?
Who will be my main contact?
How quickly can you act if a deadline is close?
What happens if the previous accountant delays the handover?

Clear answers to these questions reduce the risk of moving from one poor-fit service to another.

Common mistakes when switching accountants

Switching without checking deadlines

This can create panic if accounts, VAT, payroll or tax returns are due soon.

Not checking software ownership

If the accountant controls the software subscription, the business may lose access unless the transfer is managed.

Assuming all work is complete

Monthly payments do not always mean all filings and records are finished.

Ignoring unpaid fees

Fee disputes can delay professional clearance and access to records.

Not gathering records

The new accountant needs prior accounts, returns, bookkeeping and correspondence to understand the position.

Choosing on price alone

A cheaper accountant may not be better value if the business needs VAT, payroll, CIS, management accounts or proactive advice.

A practical switching checklist

Before switching accountants, review:

Current deadlines.
Outstanding filings.
Work already completed.
Work still in progress.
Engagement letter and notice terms.
Outstanding fees.
Software access and ownership.
Bank feed access.
Payroll access.
VAT and MTD access.
HMRC authorisation.
Companies House authentication code.
Previous accounts and tax returns.
Current-year bookkeeping records.
Director’s loan account position.
Dividend paperwork.
VAT, payroll and CIS records.
Whether professional clearance is needed.
New accountant service scope.
Transition plan and timing.

This checklist should be completed before the switch is finalised where possible.

Useful further reading and links

Useful outgoing GOV.UK links:

How Merranti can help

Switching accountants should be managed carefully, especially if accounts, VAT, payroll, CIS or tax returns are due soon. A clean handover can reduce disruption and help the new accountant understand the business quickly.

Merranti Accounting can help review your current deadlines, identify missing records, manage the handover, set up software access and support limited company accounts, VAT, payroll, Self Assessment and management accounts.

If you are thinking about switching accountants, visit Merranti’s Limited Company Accounting page or contact Merranti to discuss the handover.

FAQ

Can I switch accountants at any time?

Yes, you can usually switch accountants at any time. However, it is easier when there are no urgent filing deadlines, outstanding fee disputes or unresolved software access issues.

What should I check before changing accountants?

Check deadlines, outstanding work, unpaid fees, software access, HMRC authorisation, Companies House details, previous accounts, tax returns, VAT, payroll and bookkeeping records.

Will my old accountant speak to my new accountant?

Usually, the new accountant will request professional clearance and handover information from the previous accountant. This is a standard part of switching.

Can switching accountants delay my accounts?

It can if records are missing, deadlines are close, software access is unclear or previous work needs to be reviewed. A planned handover reduces the risk.

What records does a new accountant need?

A new accountant may need previous accounts, tax returns, VAT returns, payroll records, bank statements, bookkeeping access, HMRC correspondence, Companies House details and current-year records.

Can Merranti help me switch accountants?

Yes. Merranti can review your current position, manage the handover, check deadlines and support accounts, tax, VAT, payroll, Self Assessment and management reporting.