Changing accountants can feel awkward, particularly when they have worked with you for years or hold important information about your tax and business affairs. However, you are entitled to choose the adviser who best suits your needs, communication style and plans for the future.
Whether you are a sole trader looking for more proactive tax support, a growing business needing better bookkeeping systems, or an individual taxpayer wanting clearer advice, a well-managed handover can help protect your records and minimise disruption. The key is to approach the change professionally, keep control of your access and information, and give your new accountant enough time to understand the full picture.
Know when it may be time to change accountants
There does not need to be a major dispute before you consider a new accountant. Sometimes the relationship simply no longer fits where your business or personal circumstances are heading.
Common reasons people change accountants include:
– Calls and emails are not returned within a reasonable timeframe.
– You are regularly surprised by tax bills, cash flow pressures or lodgement deadlines.
– Your accountant only helps at tax time rather than offering support throughout the year.
– Your business has grown beyond basic compliance needs.
– You have changed business structure, started employing staff, bought property, set up a trust or established an SMSF.
– Your current accountant does not use systems that work well with your bookkeeping software or preferred way of operating.
– You want clearer pricing, more transparent scope of work or a more collaborative relationship.
– You no longer feel confident that your adviser understands your industry or goals.
It is worth separating a service issue from a difficult tax outcome. An accountant cannot always make a tax liability disappear, particularly where income has increased or deductions are limited by law. A good adviser should, however, explain the outcome clearly, identify potential obligations early and help you make informed decisions.
Before making a change, consider what “better” looks like for you. It may mean regular management reporting, help with BAS lodgements, more practical business advice, support with payroll and superannuation, or simply an accountant who explains matters in plain English.
Choose a new accountant before ending the old relationship
The smoothest transitions usually happen when you appoint your new accountant first. They can help identify what records are needed, manage communication with the outgoing practice and establish a practical handover timetable.
Start by checking that the person or firm providing tax agent services is appropriately registered with the Tax Practitioners Board. If you need BAS-only services, bookkeeping support or payroll assistance, check the type of registration and services offered are appropriate for your needs.
When speaking with a prospective accountant, ask practical questions such as:
– Who will be your main contact person?
– What services are included in the quoted fee?
– What work is outside scope and charged separately?
– How often will you hear from them during the year?
– Can they assist with BAS, payroll, bookkeeping, tax returns and financial statements?
– What experience do they have with your business structure and industry?
– Which accounting, payroll and document-storage platforms do they use?
– How will they help you plan for tax, GST, superannuation and cash flow obligations?
– Can they work with your existing bookkeeping records, or will a clean-up be needed?
– What information do they need before taking over?
For a business owner, the right accountant should understand more than your last tax return. They should ask about your income streams, customers, staffing, debt, business goals, accounting systems and ownership structure.
For an individual taxpayer, the conversation may focus on employment income, investments, rental properties, capital gains, deductions, trusts, superannuation and any significant changes during the year.
A new accountant may also need to complete identity and authority checks before they can act for you. This is a normal part of protecting your information and reducing the risk of unauthorised changes to tax records or bank details.
Review your engagement, records and account access
Before notifying your existing accountant, gather the documents and access details that you control. This reduces the risk of delays and helps you understand what needs to move across.
Your existing engagement letter or service agreement is a good place to start. Check for:
– Notice requirements for ending the engagement.
– Unpaid invoices or payment terms.
– Ongoing subscriptions, software charges or bookkeeping arrangements.
– Whether the firm acts as your registered office provider, ASIC agent or company secretary.
– Any authorisations that need to be removed or replaced.
– Arrangements for returning documents or transferring electronic records.
You should also make a list of the systems connected to your business. Depending on your circumstances, this may include:
– Accounting software and file ownership.
– Payroll software.
– Receipt capture or expense-management apps.
– Document storage and client portals.
– Bank feeds and payment platforms.
– ATO online services access and authorisations.
– ASIC records and corporate keys for companies.
– Business name renewals and company annual review obligations.
– Superannuation clearing house access.
– Digital signing platforms.
– Data backups and administrator logins.
Do not assume that your accountant owns or controls every item simply because they helped set it up. Equally, do not assume you can access every practice working paper or internal checklist. The safest approach is to ask clearly, in writing, for the records and information needed for your ongoing tax, accounting and business obligations.
If you operate through a company, make sure directors retain secure access to the company’s corporate key and ASIC records. A corporate key is particularly important because it can be needed to manage company details and lodge certain updates.
For cloud accounting software, confirm who is listed as the subscription owner, who has administrator access and whether your historical data will remain available after the handover. It is generally better to transfer access than to create a completely new file without careful planning, as a new file may lose useful history and create reconciliation issues.
Give notice professionally and authorise the handover
Once you have selected a new accountant and reviewed your position, tell your existing accountant in writing that you are ending or changing the engagement.
The message does not need to be lengthy or confrontational. A simple, professional email is usually enough. You may say that you are moving to another adviser and authorise the release of relevant information to your new accountant.
Your written authority should identify:
– Your name or business entity name.
– The scope of services ending or transferring.
– The name of the new accountant or firm.
– The records you authorise to be shared.
– Your preferred contact details for any final questions.
– Whether you want work already underway to be completed, paused or transferred.
Where appropriate, your new accountant may send a professional clearance request to the outgoing accountant. This is a standard professional communication that helps the incoming adviser understand whether there are matters they should know before accepting the engagement.
The outgoing accountant has confidentiality obligations. They should not disclose information about your affairs to your new accountant without your permission, unless they are legally required to do so. Your written authority helps avoid uncertainty and allows the transition to proceed more efficiently.
It is also sensible to request a final account and confirm what work has been completed. If there are outstanding fees, deal with them promptly where possible. Unresolved billing disputes can slow down the handover, particularly where records, software subscriptions or incomplete work need to be discussed.
Keep the tone factual. You do not need to justify your decision in detail, and there is rarely value in arguing about the past. Your focus should be on obtaining the information needed to meet your future obligations.
Transfer the information your new accountant needs
The exact handover documents will depend on whether you are changing accountants as an individual, sole trader, partnership, trust, company or SMSF trustee. Still, there are common items that your new accountant will usually request.
For most small businesses, the handover pack may include:
– Recent tax returns and tax assessments.
– Financial statements and income tax returns for prior years.
– BAS and GST records.
– Payroll reports, employee records and superannuation information.
– A list of current assets, loans, leases and finance arrangements.
– Bank reconciliations and supporting records.
– Copies of trust deeds, company constitutions and shareholder or unit-holder details, where relevant.
– Details of related entities, including trusts, companies and partnerships.
– Dividend records, loan accounts and distribution resolutions where applicable.
– Accounting software access and a copy of the general ledger.
– Details of any ATO payment arrangements, reviews, objections or correspondence.
– Information about property, shares, cryptocurrency or other investments.
– Information on planned transactions, such as a business sale, property purchase or restructuring.
If your affairs involve a trust, private company, SMSF or related-party transactions, a complete handover is especially important. These structures can create ongoing obligations that are not always obvious from a single tax return.
For example, a business owner may change accountants after becoming frustrated with late communication. The new accountant reviews the prior financial statements and discovers that the business has a company, a discretionary trust and unpaid drawings from the company. Rather than rushing into lodgements, the new adviser first gathers the relevant records, confirms the purpose of the drawings and reviews the company loan position. That extra care can help ensure the new accountant understands the full position before giving advice.
Do not be alarmed if your new accountant asks many questions. A careful onboarding process is a positive sign. They need enough information to prepare accurate work and identify issues that may need attention.
Update ATO, business and software authorities
Changing accountants is not only about transferring documents. You also need to ensure the right people have authority to act for you and the wrong people no longer have unnecessary access.
For businesses with an ABN, other than sole traders, the ATO requires the business to nominate a new registered agent before that agent can access ATO information and act on its behalf. This process is completed by an authorised person for the business, and your new accountant can explain what you need to do.
You may also need to update or review:
– ATO agent authorisations.
– Business portal access and authorised contacts.
– Software user permissions.
– Bank feed authorities.
– Payroll platform access.
– ASIC registered agent arrangements.
– Company annual review contact details.
– Email addresses used for tax, ASIC and software notifications.
– Document portal invitations and digital signing access.
– External bookkeeping or payroll provider permissions.
Do not remove your old accountant’s access until the handover is sufficiently complete, unless there is an urgent reason to do so. Removing access too early can create avoidable delays where they need to answer questions, provide a final report or finish work you have asked them to complete.
Once the transition is finalised, review all administrator users. Remove access that is no longer needed, change passwords where appropriate and activate multi-factor authentication on important accounts.
Manage timing, lodgements and unfinished work carefully
A change of accountant is usually easiest outside peak lodgement periods, but you should not delay a necessary change simply because EOFY or BAS deadlines are approaching.
The important thing is to be clear about who is responsible for each piece of work. Before the transition is complete, confirm:
– Which accountant will prepare the next BAS.
– Whether the current year tax return has been started.
– Who will finalise payroll records and any year-end reporting.
– Whether bookkeeping has been reconciled to the latest available date.
– Whether there are overdue lodgements or unpaid tax amounts.
– Whether any ATO correspondence needs an immediate response.
– Whether there are upcoming company, trust or superannuation obligations.
Put these responsibilities in writing. If the outgoing accountant is completing a return or financial statements already in progress, ask for an expected completion date. If the new accountant is taking over unfinished work, make sure they have enough time to review the records rather than being pressured into lodging something they have not had a proper opportunity to assess.
Your tax and record-keeping obligations continue even while you are changing advisers. The ATO may still issue notices, payment reminders or requests for information, so keep monitoring your correspondence and online accounts during the transition.
Building a better relationship with your new accountant
Changing accountants is an opportunity to establish better habits, not simply move the same problems to a new firm.
Be open about what has and has not worked in the past. Tell your new accountant how you prefer to communicate, when you need information for decision-making and what you want from the relationship beyond annual compliance.
You can also make the relationship more effective by:
– Keeping business and personal spending separate.
– Reconciling bookkeeping regularly.
– Providing documents promptly and in an organised format.
– Asking questions before signing contracts or making major transactions.
– Discussing tax and cash flow before the end of the financial year.
– Telling your accountant early about new employees, property purchases, business sales, loans, trusts or changes in ownership.
– Scheduling periodic check-ins rather than relying only on tax-time conversations.
The best financial partnership is built on timely information and two-way communication. Your accountant should be able to explain risks, opportunities and obligations clearly, while you should feel comfortable raising concerns before they become urgent.
A fresh start with the right support
Changing accountants does not have to be difficult or uncomfortable. With a new adviser selected, written authority in place, records organised and access carefully managed, the transition can be straightforward.
The goal is not simply to find someone to lodge forms. It is to work with an accountant who understands your circumstances, communicates clearly and gives you confidence in the financial decisions ahead.
This article is general information only and is not personal financial or tax advice. Your circumstances, business structure and existing obligations matter, so speak with a registered tax agent or accountant, such as, for advice tailored to your situation.