Changing accountants is a significant decision for any business or individual. Your accountant handles crucial financial matters like taxes and long-term planning. Trust is key in this relationship, but there are many reasons you might consider switching accountants. Whether it’s due to evolving business needs or dissatisfaction with current services, here’s why people often make a change.
And at the end we’ll tell you which problems we see the most in new businesses that are coming to talk to us.
1. Poor Communication and Responsiveness
A common reason for switching accountants is poor communication. If your accountant is slow to respond, unclear, or doesn’t keep you informed, it can lead to frustration. Missing deadlines for tax filings or financial obligations could even result in penalties. Timely communication is essential. If you often have to chase your accountant for answers or feel out of the loop, it may be time to switch.
2. Lack of Proactive Advice
A good accountant doesn’t just react to financial situations. They should offer proactive advice, such as tax planning or cost-saving strategies. If your accountant focuses only on preparing tax returns or financial statements without suggesting ways to improve, they may not be meeting your needs. A more proactive accountant can help you anticipate financial challenges and seize opportunities.
3. Inaccuracies or Mistakes
Financial errors or inconsistencies are a major red flag. Mistakes in tax filings or financial reports can have serious consequences, like audits or penalties. If your accountant makes frequent errors, it could mean they’re not paying enough attention to your finances. In such cases, finding someone who prioritizes accuracy is critical.
4. Outgrowing the Accountant’s Expertise
As your business grows, your financial needs often become more complex. You might need help with financial forecasting or international taxes, which your current accountant may not handle well. If they lack the necessary experience or skills to support your growth, it makes sense to look for someone who can. An accountant with the right expertise is crucial as your business evolves.
5. Cost vs. Value
Sometimes, the reason for changing accountants comes down to cost. You may feel that you’re paying too much for the services you’re receiving. If you’re being charged premium prices but not getting high-quality service, it’s time to reassess. Finding an accountant who provides better value for your money can improve your financial well-being.
6. Trust Issues
Trust is the foundation of any relationship with an accountant. If you suspect unethical behaviour or lack of transparency, it’s a serious concern. Even if you just feel uncomfortable without a clear reason, trust your instincts. You need to fully trust your accountant. If you don’t, changing accountants is essential.
7. Technology and Tools
The accounting industry is changing with new software and automation tools. If your accountant is not using modern technology, it may cause delays or errors. Using outdated methods means you might miss out on the benefits of real-time financial insights or faster, more accurate service. Switching to an accountant who embraces new tools can improve efficiency and accuracy.
So what’s the biggest issue?
Of all of these issues, we find that number 7 is a big one for many businesses – some accountants just get stuck in a rut, and your business can suffer by not having access to, or not utilising fully, the full range of tools that are now available to business owners. (We also see number 1 pretty frequently).
If you feel that the time may be right for you to make a change, just get in touch – call us on 01634 540040, or drop an email to andy@aktax.co.uk.
We look forward to hearing from you.
