12. August 2026

Signs It May Be Time to Change Accountant

A good accountant should do more than submit annual accounts and tax returns.

They should understand your business, explain your tax position clearly, help you meet deadlines and provide information that supports better financial decisions.

However, not every delayed reply or disagreement means that you need a new accountant. Businesses and accountants both experience busy periods, and problems can sometimes be resolved through a clear conversation about expectations.

The decision to change accountant should normally be based on a repeated pattern, a serious failure or a clear mismatch between the service you need and the service being provided.

The short answer

It may be time to consider changing accountant if:

• Your messages are repeatedly ignored
• Work is regularly completed at the last minute
• Important deadlines have been missed
• You discover frequent or unexplained errors
• You do not understand your accounts or tax position
• Your accountant only contacts you when something is due
• You receive unexpected invoices
• Your business has outgrown the available service
• You are not receiving appropriate tax planning
• Your records and accounting software are not maintained properly
• You cannot obtain copies of your accounts, returns or calculations
• You no longer trust the advice you receive

One isolated problem may be capable of correction. Several of these problems occurring repeatedly suggest that the relationship needs a formal review.

1. Communication is consistently poor

One of the clearest warning signs is persistent difficulty communicating with your accountant.

Examples may include:

• Emails remaining unanswered for several weeks
• Repeated follow-up messages being required
• Telephone calls not being returned
• Questions receiving incomplete or unclear answers
• Being unable to identify who is dealing with your work
• Important messages being acknowledged but never resolved
• Only receiving a response when a deadline is imminent
• Different team members giving conflicting information

Your accountant does not need to answer every message immediately. A reasonable response time will depend on the urgency of the question, the agreed service and the time of year.

However, you should know:

• How to contact the firm
• When to expect an initial response
• Who is responsible for your work
• How urgent matters will be handled
• Whether advice or meetings are included in your fee
• When a full answer will be provided if research is required

A short acknowledgement can be sufficient where a detailed response will take longer. The real concern is silence, uncertainty and repeated chasing.

2. Your accounts are always prepared at the last minute

Completing accounts close to the filing deadline does not automatically mean that the work is incorrect.

However, consistently leaving work until the last possible moment can create avoidable risks.

Late preparation may mean that:

• Errors are more difficult to correct
• Missing records are discovered too late
• There is little time to review the accounts
• Tax liabilities come as a surprise
• Tax-planning opportunities have already passed
• Finance applications are delayed
• Dividends have been paid without reliable profit information
• The business cannot plan its cashflow properly

Good tax planning is often time-sensitive.

For example, decisions involving pension contributions, director remuneration, capital expenditure, dividend payments or changes to business structure may need to be considered before the end of the accounting period or tax year.

An accountant who only reviews the figures months after the period has ended may be able to report what happened, but they may be unable to improve the outcome.

3. Important deadlines have been missed

Missing an important filing or payment deadline is more serious than a slow response.

Depending on the business, the relevant deadlines may include:

• Annual accounts
• Corporation Tax returns
• Self Assessment tax returns
• VAT returns
• PAYE submissions
• CIS returns
• Confirmation statements
• Capital Gains Tax returns
• Making Tax Digital submissions
• Companies House changes
• Pension submissions
• Tax payments

Before concluding that the accountant is responsible, check whether you provided the required information on time.

If the accountant requested records repeatedly and received them shortly before the deadline, the delay may not be the accountant’s fault.

However, concerns are justified where:

• Complete records were provided in good time
• The accountant accepted responsibility for the deadline
• No further information was requested
• The return was still filed late
• You were not warned that the deadline was at risk
• The same problem has happened more than once
• The accountant refuses to explain what went wrong
• No steps are taken to prevent the problem happening again

Limited company directors remain legally responsible for their company’s records, accounts and performance even when an accountant has been appointed. The government explains this in its guidance on directors’ responsibilities.

This makes it important to monitor deadlines yourself and act promptly if your accountant appears unable to complete the work.

4. You keep finding errors

Accounting and tax can involve complex judgement, and no professional can guarantee that an error will never occur.

The important questions are:

• How significant was the error?
• Why did it happen?
• Was it identified by the accountant or by someone else?
• Was it corrected promptly?
• Did the accountant explain the consequences?
• Were HMRC or Companies House notified where required?
• Has the review process been improved?

Warning signs may include:

• The same mistake being repeated
• Income or expenses being omitted
• VAT being treated incorrectly
• Payroll figures not agreeing with the accounts
• Director’s loan balances being unexplained
• Bank accounts remaining unreconciled
• Personal expenses being claimed as business expenses
• Accounts being filed without your approval
• Tax returns not agreeing with the supporting calculations
• Property income being allocated incorrectly
• Previous-year balances changing without explanation
• Documents being filed using incorrect company information

A responsible accountant should investigate a material error, explain it in plain language and recommend the appropriate correction.

Trying to conceal an error, blaming the client without evidence or refusing to provide the underlying calculations is a much more serious concern than the original mistake.

5. You do not understand your accounts or tax position

Your accountant’s role is not simply to produce documents.

You should receive a clear explanation of important figures, including:

• The profit or loss for the period
• The amount of tax payable
• The payment deadline
• How the tax has been calculated
• Significant adjustments
• Money owed to or by directors
• Dividends recorded during the year
• VAT or payroll liabilities
• Unusual balances
• Changes from the previous year
• Matters requiring action

You do not need to understand every accounting rule, but you should understand the overall position before approving accounts or tax returns.

Be cautious if you regularly receive documents with instructions to sign immediately but no meaningful explanation.

You should also receive copies of the final accounts, returns and relevant tax calculations after submission.

6. You only hear from your accountant when a deadline is approaching

Some accountancy services are deliberately limited to annual compliance work. If that is what was agreed and priced, limited contact during the year may not represent poor service.

The concern arises when you believed that you were paying for ongoing support or proactive advice, but only receive a request for records shortly before the filing deadline.

A more proactive service may include:

• Tax payment estimates
• Reminders before deadlines
• Periodic bookkeeping reviews
• Management accounts
• Cashflow discussions
• VAT registration monitoring
• Director remuneration planning
• Advice before major purchases
• Pre-year-end tax planning
• Reviews of business performance
• Warnings about emerging compliance risks

The level of contact should reflect the agreed package and the complexity of the business.

If your needs have changed, the first step may be to ask whether your existing accountant can provide a more comprehensive service. If they cannot, another firm may be more suitable.

7. Your accountant does not understand your business

Technical accounting knowledge is important, but it must be applied to the circumstances of the business.

An accountant should understand matters such as:

• How the business earns income
• The main operating costs
• The business structure
• The owner’s plans
• The bookkeeping process
• The applicable taxes
• The industry’s common transactions
• The business’s major financial risks
• The distinction between personal and business activity

Sector knowledge becomes particularly important where the business involves areas such as:

• Property investment
• Serviced accommodation
• Construction and CIS
• Overseas transactions
• E-commerce
• Client money
• Property sourcing
• Professional services
• Multiple business activities
• Complex VAT treatment

Your accountant does not need to know every answer immediately. Some transactions require further research or specialist advice.

The warning sign is when important aspects of the business are repeatedly misunderstood, ignored or treated as though they are no different from an unrelated type of business.

8. You receive unexpected fees

Accountants may charge additional fees where work falls outside the original engagement.

Examples may include:

• Correcting incomplete bookkeeping
• Responding to an HMRC enquiry
• Preparing amended returns
• Providing tax-planning advice
• Registering the business for VAT
• Preparing a Capital Gains Tax return
• Completing additional payroll work
• Resolving prior-year errors
• Producing reports for a lender
• Providing records urgently
• Completing work for an additional business

Additional charges are not automatically unreasonable.

The concern is whether the scope and price were explained before the work was completed.

Potential warning signs include:

• Fees changing without explanation
• Invoices containing vague descriptions
• Being charged for services believed to be included
• Large additional fees being raised without prior approval
• No engagement letter or fee schedule
• Repeated increases without a corresponding change in service
• Being unable to obtain a breakdown of the charges

Your engagement letter should explain the services included, your responsibilities, the accountant’s responsibilities and how additional work will be charged.

Where the scope is unclear, ask for written confirmation before deciding whether the fee itself is unreasonable.

9. You are not receiving useful tax planning

An accountant cannot promise that every client will have a significant tax-saving opportunity.

Sometimes the correct conclusion is that the existing treatment is already appropriate.

However, your accountant should consider relevant planning points and explain which options are suitable or unsuitable.

Depending on your circumstances, this may include:

• Sole trader or limited company structure
• Salary and dividend planning
• Pension contributions
• Capital allowances
• Business-use adjustments
• VAT registration
• The timing of expenditure
• Property ownership
• Capital Gains Tax
• Employment status
• Loss relief
• Payments on account
• Tax payment planning
• Succession or exit planning

Be cautious where an accountant:

• Never asks about future plans
• Only discusses tax after the year has ended
• Recommends an arrangement without calculations
• Promises guaranteed tax savings
• Suggests personal expenditure can be claimed without a business purpose
• Encourages artificial or commercially unrealistic transactions
• Cannot explain the risks of the proposed treatment

Good tax planning considers the full commercial position, not only the immediate tax reduction.

10. Your bookkeeping records are unreliable

Where the accountant also provides bookkeeping, the records should be maintained to the agreed frequency and standard.

Possible warning signs include:

• Bank balances that do not reconcile
• Duplicate transactions
• Missing sales
• Unexplained suspense balances
• Old customer invoices that have already been paid
• Personal transactions recorded incorrectly
• VAT codes applied inconsistently
• Director withdrawals classified without explanation
• Reports that change substantially without a clear reason
• Several months of transactions remaining unprocessed
• No one asking about unclear payments

Accounting software can import transactions, but it cannot reliably decide the correct treatment without sufficient information and review.

If you cannot rely on the figures during the year, you may make decisions based on inaccurate profit, cashflow, tax or customer balances.

11. You cannot access your accounting information

Your business should not become dependent on one individual’s private files or software account.

Depending on the services provided, you should normally be able to obtain appropriate access to:

• Your accounting software
• Submitted annual accounts
• Tax returns
• Tax calculations
• VAT return summaries
• Payroll reports
• CIS records
• Relevant bookkeeping records
• Companies House authentication information
• HMRC correspondence
• Supporting schedules provided to you
• Copies of documents originally supplied by you

The ownership of an accountant’s internal working papers may depend on the nature of the documents and the engagement terms. This is different from your right to access your own source records and copies of documents submitted on your behalf.

Before changing accountant, download the records available to you and confirm who controls each software subscription.

Never give an accountant your personal Government Gateway password. HMRC provides formal methods for authorising an agent and states that sign-in credentials should not be shared. The authorisation options are explained in HMRC’s agent authorisation guidance.

12. Your business has outgrown the service

An accountant may have provided a good service when the business was smaller but no longer have the capacity or expertise required.

The business may now need:

• Monthly bookkeeping
• VAT support
• Payroll
• CIS compliance
• Management accounts
• Cashflow forecasting
• Budgeting
• Finance application support
• Property accounting
• Group accounts
• Overseas tax advice
• More frequent meetings
• Faster response times
• Specialist tax planning
• Support for employees or shareholders

This does not necessarily mean that the previous accountant has done anything wrong.

It may simply mean that the business now requires a different level of service.

A good accountant should be willing to discuss whether the firm can continue to meet your needs and, where appropriate, recommend additional or specialist support.

13. There is no continuity when your usual contact is unavailable

A small accountancy practice may provide a highly personal service, but there should still be reasonable arrangements for absence, illness or emergencies.

Consider whether:

• Another person can access your records
• Urgent deadlines are monitored
• Messages are redirected during absences
• Work is reviewed by someone other than the preparer
• There is a clear continuity plan
• You know who to contact if your normal adviser is unavailable

A temporary delay during annual leave is not a reason to change accountant where expectations have been communicated properly.

The risk arises when all knowledge, access and responsibility rest with one person and no one can deal with your affairs if that person becomes unavailable.

14. Your concerns are dismissed rather than investigated

You should be able to question a figure, treatment or fee without being made to feel that you are causing a problem.

A professional response may involve:

• Explaining the treatment
• Checking the records
• Providing the calculation
• Correcting an error
• Referring to relevant guidance
• Obtaining specialist advice
• Acknowledging where the position is uncertain

The accountant does not have to agree with every assumption you make.

In fact, a responsible accountant should challenge transactions or claims that are unsupported, inaccurate or contrary to tax law.

The warning sign is not disagreement. It is a refusal to investigate, explain or provide evidence.

15. You no longer trust the relationship

The relationship between a client and accountant depends on openness.

Your accountant needs complete and accurate information to prepare reliable accounts and returns. You need confidence that the accountant will handle that information competently and confidentially.

Trust may be damaged by:

• Repeated errors
• Unauthorised filings
• Confidentiality concerns
• Unexplained changes to figures
• Advice that appears dishonest
• Promises that cannot be supported
• Withholding important information
• Aggressive behaviour when questioned
• Refusing to acknowledge mistakes
• Repeated failure to complete agreed work
• A serious data-security incident

Once trust has broken down completely, continuing the relationship can become difficult even if individual technical problems are corrected.

When poor service may not be the accountant’s fault

Before changing accountant, assess your own part in the process honestly.

The accountant may be unable to complete the work properly if you:

• Provide records late
• Do not answer queries
• Withhold relevant information
• Mix personal and business transactions
• Fail to maintain required records
• Approve accounts without reviewing them
• Make important decisions without seeking advice
• Ignore tax payment reminders
• Expect work outside the agreed service
• Change bookkeeping figures after they have been reviewed

You should also distinguish between receiving an unexpectedly high tax bill and receiving incorrect tax advice.

A tax bill may be higher because:

• Profit increased
• Payments on account are due
• Income was not taxed at source
• Dividends exceeded the available allowance
• VAT registration was required
• A previous tax reduction no longer applies
• Insufficient money was reserved during the year

The accountant should explain the liability clearly, but they cannot remove a correctly calculated tax bill simply because it is unwelcome.

Problems that may be resolved without changing accountant

It may be worth arranging a formal review meeting before ending the relationship where:

• The main issue is response time
• You need a broader service
• The current engagement is unclear
• You want more frequent reporting
• A team member has changed
• The problem occurred once and was corrected
• Your business needs have recently changed
• You misunderstood which services were included
• The fees need to be restructured

At the meeting, ask for specific improvements rather than saying only that the service needs to be better.

For example:

• Emails should be acknowledged within two working days
• Monthly bookkeeping should be completed by an agreed date
• Tax estimates should be provided before the year end
• Draft accounts should be prepared by a specified month
• Quarterly meetings should be scheduled in advance
• Additional fees should be approved before work begins
• Copies of submissions should be provided promptly

If the accountant agrees to a realistic action plan and follows it, changing firm may be unnecessary.

Situations where you may need to act quickly

You should not wait for a convenient year-end if there is an immediate risk involving:

• An imminent filing deadline
• Suspected fraud or dishonesty
• An unauthorised tax return
• A serious data breach
• Advice involving tax evasion
• Incorrect payroll affecting employees
• Repeatedly unpaid taxes that you believed had been dealt with
• HMRC correspondence being withheld
• A proposed transaction with significant tax consequences
• Loss of access to business records
• The accountant ceasing to trade
• The accountant no longer being authorised to provide the service

Where misconduct may have occurred, preserve copies of correspondence, filings, invoices and supporting records.

You may also need independent tax, legal or professional-body advice depending on the seriousness of the issue.

Can you change accountant at any time?

Yes. A business or individual can normally change accountant at any point, subject to the termination provisions in the engagement letter.

You do not need to wait until:

• The financial year has ended
• The annual accounts have been filed
• A VAT quarter has finished
• The tax year has ended
• Your current accountant gives permission

However, timing affects how easily the work can be transferred.

A change may be simpler immediately after completing a set of annual accounts or tax returns because the previous period has been closed.

It may still be better to change immediately where a deadline is at risk or the relationship has broken down.

The priority is to establish clearly:

• Which work has been completed
• Which returns have been submitted
• Which submissions are still outstanding
• Who is responsible for each approaching deadline
• Whether any tax is due
• Which records remain with the previous accountant

How to change accountant

A properly managed change should be straightforward.

1. Review your current engagement letter

Check:

• The notice period
• How the engagement must be terminated
• Outstanding fees
• Work currently in progress
• Software arrangements
• Responsibilities for records
• Any registered office service
• Any data or document transfer provisions

Do not assume that cancelling a Direct Debit automatically ends the professional engagement.

2. Identify every outstanding deadline

Prepare a list covering:

• Annual accounts
• Corporation Tax
• Self Assessment
• VAT
• Payroll
• CIS
• Confirmation statements
• Capital Gains Tax
• Making Tax Digital
• Tax payments
• Companies House changes

Record the deadline, current status and the person responsible.

This is particularly important if you are changing accountant close to a filing date.

3. Choose the new accountant

Ideally, appoint the replacement before ending the existing engagement.

The new accountant can then review the position and identify the information required for a safe transfer.

4. Complete the new firm’s onboarding process

The new accountant will normally need:

• Identification documents
• Business details
• Tax references
• Company information
• Details of beneficial owners
• Information about the services required
• A signed engagement letter
• Authority to contact the former accountant
• HMRC agent authorisation

Anti-money laundering checks are a normal part of appointing a regulated accountancy service provider.

5. Notify the previous accountant in writing

Your notice should state:

• That you are ending the engagement
• The effective date
• The name of the new accountant
• Permission to communicate with the new accountant
• A request for confirmation of outstanding work
• A request for copies of any records you require

Keep the message factual and professional, even where you are dissatisfied with the service.

6. Allow professional clearance to take place

The new accountant will normally contact the previous accountant.

This is often referred to as professional clearance or a professional enquiry.

Its purpose is to:

• Confirm that the client has authorised the communication
• Ask whether there are professional reasons affecting acceptance
• Identify relevant matters
• Request accounting and tax information
• Support continuity of the client’s affairs

It is not a request for the previous accountant to approve your decision to leave.

ACCA guidance states that an outgoing ACCA accountant should obtain the client’s consent, respond within a reasonable time and transfer specified information required for continuity. Further details are available in ACCA’s guidance on the disengagement process.

7. Transfer the accounting and tax records

Depending on the client and services, the transfer may include:

• The most recent annual accounts
• Detailed trial balances
• Corporation Tax returns
• Self Assessment returns
• Tax calculations
• Capital allowance schedules
• Fixed asset registers
• Director’s loan account records
• VAT returns
• Payroll reports
• CIS records
• Bookkeeping data
• Bank reconciliation reports
• Details of losses carried forward
• HMRC correspondence
• Companies House records
• Outstanding queries
• Relevant elections or claims

The new accountant may also require information from several earlier years where balances or tax claims continue into the current period.

8. Update HMRC authorisation

The new accountant must be authorised before they can deal with HMRC on your behalf.

The method depends on the relevant tax and HMRC service.

HMRC explains that changing an authorised tax agent generally requires a new authorisation request. You should also check whether the former agent’s access needs to be removed from any other service. See HMRC’s guidance on changing or removing a tax agent.

Do not give the new accountant your personal Government Gateway credentials.

9. Update software and other access

Review access to:

• Accounting software
• Receipt-capture software
• Payroll software
• Pension systems
• Companies House services
• Bank feeds
• Payment platforms
• Shared folders
• Registered office mail
• Business email accounts

Remove access that is no longer required, but only after the necessary information has been transferred.

10. Confirm the handover in writing

The new accountant should confirm:

• The services they are taking over
• The effective date
• The next filing deadlines
• The records still required
• Any work excluded from the engagement
• Any prior-period issues requiring investigation
• The agreed fees
• Who will be your main contact

Do not rely on an assumption that the new accountant is dealing with a deadline merely because onboarding has started.

What if you owe your previous accountant money?

Changing accountant does not remove your obligation to pay valid fees for work properly completed.

If you dispute an invoice:

• Request a detailed breakdown
• Compare it with the engagement letter
• Identify the specific part disputed
• Pay any undisputed amount
• Keep the discussion in writing
• Use the firm’s complaints procedure where appropriate

The extent to which an accountant may retain particular documents can depend on the engagement, the type of document and any legal right of lien.

It is therefore better to resolve fee disputes promptly rather than allowing them to disrupt an important filing.

How long does it take to change accountant?

The process may take from a few days to several weeks.

The timing depends on:

• How quickly both firms communicate
• Whether the previous work is up to date
• The complexity of the business
• The number of taxes involved
• Whether records are held in accessible software
• Whether fees are outstanding
• Whether previous errors need to be investigated
• How quickly HMRC authorisation is completed
• Whether a deadline is approaching

A longer transition does not necessarily mean that anything is wrong. A complex business may require a detailed transfer.

However, both firms should communicate clearly enough to prevent work from being missed during the handover.

How to choose a new accountant

Before appointing a replacement, ask:

1. Which services are included in the fee?
2. Which responsibilities remain with me?
3. Who will be my main contact?
4. What response time should I expect?
5. How early will my accounts and returns be prepared?
6. Is bookkeeping included?
7. Are VAT, payroll and CIS included?
8. Will I receive tax estimates during the year?
9. Are advice and meetings included?
10. What experience do you have in my industry?
11. What qualifications and professional memberships do you hold?
12. Who supervises the firm for anti-money laundering purposes?
13. Does the firm hold professional indemnity insurance?
14. How will my work be reviewed?
15. Which software will be used?
16. Will I retain access to my accounting records?
17. How are additional fees agreed?
18. Who will monitor deadlines?
19. What happens if my normal contact is unavailable?
20. How will you manage the transition from my previous accountant?

HMRC warns that a person can describe themselves as a tax agent without necessarily having professional qualifications. Its guidance on choosing a tax agent recommends checking qualifications, professional-body membership, experience and the terms of the service.

Since 18 May 2026, paid tax advisers who interact with HMRC may also be required to register with HMRC, depending on their circumstances. Registration is separate from professional qualifications and does not remove the need to assess competence, professional standards and relevant experience.

What should a good accountant provide?

The exact service will depend on the engagement, but a good working relationship should provide:

• Clear responsibilities
• Agreed deadlines
• Transparent fees
• Accurate work
• Appropriate review
• Secure handling of information
• Understandable explanations
• Timely requests for records
• Copies of submitted documents
• Warnings about important risks
• Advice based on the client’s actual circumstances
• Honest discussion of uncertainty
• Challenge where a proposed treatment is incorrect
• Professional communication

A good accountant should not simply agree with everything the client wants to claim.

Professional judgement sometimes requires the accountant to say that an expense is not allowable, a dividend cannot legally be paid or a proposed arrangement creates unacceptable risk.

The quality of an accountant should therefore be judged by the accuracy and reasoning behind the advice, not by whether the advice always produces the lowest possible tax bill.

Changing accountant should improve the process

Moving to a new accountant will not automatically correct every existing problem.

The new accountant may need to:

• Review previous accounts and tax returns
• Correct bookkeeping
• Reconcile balances
• Submit amended returns
• Contact HMRC
• Reconstruct missing records
• Investigate director’s loan accounts
• Review VAT treatment
• Confirm available losses
• Check previous claims and elections

This work may be outside the standard annual fee.

Before appointing the new accountant, ask whether they have reviewed enough information to identify the likely corrective work and cost.

The objective should not simply be to replace one name with another. The change should create a clearer, more reliable accounting process.

Speak to PR Accountants Ltd

If you are considering changing accountant, PR Accountants Ltd can review your current requirements and explain how the transfer process would work.

Our services include:

• Annual accounts
• Corporation Tax returns
• Self Assessment tax returns
• Bookkeeping
• VAT returns and VAT registration
• Payroll
• CIS compliance
• Management accounts
• Cashflow support
• Property accounting
• Director remuneration planning
• Tax and business advice

We can contact your previous accountant with your permission, review the transferred records and confirm the outstanding deadlines for which we will be responsible.

Before accepting the engagement, we will also clarify the information required, the services included and any historical issues that may need separate work.

PR Accountants Ltd
Email: info@praccounting.co.uk
Telephone: 0330 043 0792
Website: www.praccounting.co.uk

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• Accounting Software Is Not Enough Without Proper Bookkeeping
• What Records Should Limited Companies Keep?
• What Happens If You Miss a Tax Deadline in the UK?
• Sole Trader vs Limited Company: Which Is Better for a UK Small Business?

This article provides general information and does not constitute personalised accounting, tax or legal advice. The appropriate action will depend on the engagement terms, outstanding work, deadlines and individual circumstances.