Lack of availability, the need for more in-depth advice, a business that has grown faster than its support… There are many legitimate reasons to change accountants. Yet many business owners put off the decision for fear of a complicated transition. In reality, when it is well prepared, the handover of a file happens without disruption.
When should you consider a change?
A few warning signs should alert you:
- your questions go unanswered or the answers come too late;
- you receive your accounts without any explanation and do not know how to use them;
- tax and social security deadlines are handled at the last minute;
- your business has changed (growth, new activities, subsidiaries, exports) and your support has not kept pace;
- you do not have a dedicated contact who knows your file.
The best time to change is often after a financial year-end, once the accounts have been prepared. But a change during the financial year is entirely possible if the handover is properly organised.
The steps in a file handover
1. Review your needs
An initial discussion helps us understand your business, your organisation, your expectations and any difficulties you have encountered. It is also an opportunity to define the scope of the engagement: bookkeeping or supervision, tax, payroll, legal matters, advice.
2. Formalise the new engagement
An engagement letter sets out what the firm will handle, the documents expected from you, the timetable and the fees. It avoids misunderstandings and serves as a reference throughout the relationship.
3. Inform your previous firm
The current engagement should be terminated in accordance with the terms of your previous engagement letter. The outgoing firm is then contacted to organise the transfer of the file, in a professional and courteous manner.
4. Retrieve the file documents
The handover covers in particular:
- the latest annual financial statements and the closing trial balance;
- the general ledger and the accounting files for the current year;
- the tax and social security returns filed and proof of payment;
- corporate documents (articles of association, minutes, registers);
- the calendar of upcoming deadlines.
5. Ensure continuity of obligations
The new firm checks the opening balances, lists the upcoming deadlines and makes sure that no return falls through the cracks. This is the most important point: the transition must never result in a delay.
What you need to prepare
- your access to the online portals of the tax authority and the social security fund;
- your bank statements and the documents for the current financial year;
- the list of your main contracts (lease, loans, leasing);
- your questions and expectations, so that you start on a clear footing.
The right questions to ask your new firm
Before committing, do not hesitate to ask who your day-to-day contact will be, how communication will be organised, what response times you can expect and what management information you will receive during the year.
Common misconceptions about changing firms
“My former firm can refuse to hand over the file.” The company’s documents belong to the company: their return is organised in a professional manner, taking into account the contractual commitments of the previous engagement.
“I will have to re-enter everything.” The handover builds on the existing balances and files. The new firm checks their consistency rather than rebuilding everything.
“It is the wrong time.” There is never a perfect time, but some times are easier than others. Waiting for a year-end is comfortable; acting during the financial year is possible with a precise calendar of deadlines.
“It will cost more.” The cost depends on the scope of the engagement. A clear engagement letter lets you know exactly what is included, with no surprises during the year.
In summary
Changing accountants is a simple process as long as it is structured: clearly defined needs, a precise engagement letter, an organised handover and particular attention to deadlines. At LAYODIS, we take over your file in liaison with your previous firm. Discover our accounting services or let’s talk about your situation.
