Changing accountants can be a challenging time for company directors, even if the handover process goes smoothly. This article explores whether there is an optimal time of year to move to a new firm.
The best time to switch accountants is usually just after your company’s year-end, when accounts are complete, and handover is simpler. However, if your accountant is making mistakes or missing deadlines, it’s often better to switch immediately rather than wait.
There are many reasons why you might want to change your accountant.
From our experience, poor communication is often a key culprit. Missing deadlines or inaccurate tax returns are also unforgivable to contractor clients, whose tax affairs are typically very simple.
We’ve covered these scenarios and how the switching process works here.
But, when is the best time to make the change? What factors should you consider before giving notice to your current accountant?
When is the best time to switch accountants?
Timing your move – things to consider
In an ideal world, the best time to change firms is at the end of your company’s financial year.
When is your company’s year-end?
Find out when your limited company’s year-end is. This is usually the end of the month on the anniversary of the date you formed your company.
If you’ve been paying for your accountant every month, part of these fees should contribute to finalising your year-end accounts.
Assuming you have already paid for your year-end accounts to be prepared, make sure your current accountant finalises them.
Unsurprisingly, if poor service influenced your decision to switch accountants, you might not be confident that they will produce your year-end accounts accurately or on time.
In this case, you can ask your new accountant to take over your accounts in their current state. They will usually charge a one-off fee to bring your accounts up-to-date.
The ‘switcher’ market in the contractor accounting world is very competitive, so you can find deals where a new accountant will take over your tax affairs and bring them up-to-date for free. It’s worth looking around.
Avoid ‘busy’ times of year for accountants
December and January are sub-optimal months for switching.
For obvious reasons, businesses begin shutting down by the middle of December, in advance of Christmas.
Self-assessment time is also typically a hectic period for small business accountants.
To avoid penalties, personal tax returns must be submitted to HMRC by 31st January each year.
Given that many company directors leave this task to the last minute, you will find that many accountancy firms are rushed off their feet to help clients in the second half of January.
If you have a choice, mid-December to the end of January might be a good time to avoid switching, as you don’t want your new accountant to be distracted at a crucial time for your company.
The reality of timing your switch to a new accountant
| Situation | Best action | Why |
|---|---|---|
| The company’s year-end has just been completed | Good time to switch | Accounts likely finalised, cleaner handover |
| Year-end accounts not yet prepared | Consider waiting | You may have already paid for completion |
| December–January period | Avoid if possible | Accountants are busy with Self Assessment deadlines |
| Accountant making mistakes or missing deadlines | Switch immediately | Risk of penalties outweighs timing considerations |
| Service is acceptable, but communication is poor | Plan to switch at the next logical milestone | Minimises disruption and extra fees |
If you’ve decided to change your accountant, it means you are unhappy with the service you’ve received.
In many cases, you will just want to move as soon as possible.
After all, if your accountant has made mistakes or filed paperwork late, who’d want to stay as a client in case more errors are made?
If this sounds familiar, then from our experience, you’re better off switching sooner rather than waiting for the ‘perfect’ time.
The extra expense of bringing your company accounts up-to-date is likely to be fairly small compared to the peace of mind you’ll get when you move to a new accountant.
Some useful reading
Here are some popular guides to help you choose the best accountant:
- How to change accountants – how does the process work?
- How to authorise your new accountant to deal with HMRC
- What are the typical tasks an accountant will carry out for your company?
- Contractor accountancy fees comparison table
Top contractor accountants
- SG Accounting – First 3 months half price (£59.50 per month)
- Bright Ideas Accountancy – 5 stars on Google, from £109 per month
- Clever Accounts – IR35 FLEX. Take on any contract type
- Aardvark Accounting – Complete service from £89 per month
- Integro Accounting – Fixed fee – 6 months half price
We've worked with all of these firms for over 8 years. Always check current pricing and service details before signing up.