How to switch your accountant
It’s is easier than you’d think
Switching accountants sounds like a bigger deal than it is. Most people put it off because they're picturing an awkward conversation, a lot of admin they don’t have time for, or a rule about only being able to switch at year-end. None of that's really true.
Switching accountants usually just starts with a chat
It's mostly not on you.
Once you've decided on a new accountant, they do most of the heavy lifting. They send your old accountant what's called a professional clearance letter/ethical letter, a formal request for your records and information. Accountants in NZ are bound by a code of ethics that requires a timely, honest response, so there's no room for your old firm to drag their feet or make it difficult.
You don't need to have the conversation yourself - your new accountant handles it all for you.
What the process actually involves
An initial conversation. Your new accountant will want to understand your business before anything else, what's working, what isn't, and whether it's a good fit both ways.
If you decide to make the change, your new accountant will request ethical and professional clearance from your old accountant. Then they'll ask you to sign an authority to act. This is a short, standard document that simply gives your new accountant permission to request your information and represent you with Inland Revenue. It's routine, and every accounting firm deals with them regularly.
From there, the handover runs mostly between the two firms. Your old accountant is professionally obligated to respond, it's a normal part of business for them, not a personal one, even if the relationship has run its course.
IRD gets updated. Your new accountant links themselves as your tax agent through Inland Revenue. That's admin on their end, not something you need to run around sorting.
A quick check. Your new accountant will look over what comes across to make sure nothing's overdue or missing before picking up where things left off.
Settling up. If you owe your old accountant for work already done, sort that out. Beyond that, there's no cost to you just for switching.
You don't need to wait for the end of the financial year
A common assumption is that you have to wait until EOFY to switch. You don't. You can change accountants at any time, mid-GST-cycle, before terminal tax, whenever suits. The handover just picks up from wherever your books currently sit.
If you've been putting it off "until the timing's right," rest assured that any time you are ready for a change is the right time.
If you’ve been considering a switch, you've probably already made up your mind.
You just wanted the reassurance that it wouldn't be a headache, with a hard conversation. It won't be. Get in touch and we can have an honest chat about where your business is at and whether we're the right fit.
Note: This article is general information, not personalised tax or financial advice. Every business is different, talk to us about what fits yours. We’d love to chat.
