Most people leave it about a year longer than they should, and the reason is always the same. Switching feels like a bigger job than it is, so a problem that costs money every month gets tolerated.
It takes about a fortnight and you do very little of it.
Six reasons that are worth acting on
They go quiet. The most common one by a distance. Emails unanswered for a fortnight, calls not returned. If you are chasing your own accountant, you are already paying for a service you are not getting.
Deadlines get hit at the last minute, or missed. Accounts filed on the deadline rather than before it means no time to plan anything. A missed CIS return also breaks the compliance test for gross payment status, which is a real cost.
You are doing the work yourself. If you file your own CIS returns, chase your own retention, or build your own job costing in a spreadsheet, you are paying twice.
They do not know construction. Retention not on the balance sheet. Applications treated as invoices. Nobody has mentioned the reverse charge. These are not small things.
You only hear from them once a year. An accountant who tells you about last year in nine months’ time is a historian. Useful, but not what you needed.
You have outgrown them. The month you start paying subcontractors, the work changes. A firm that was right for you at £200,000 may not be right at £1.5 million.
Two reasons that are not worth acting on
A tax bill you did not expect. Sometimes that is bad advice. More often it is a good year, or drawings nobody flagged. Ask for the explanation before you assume.
Somebody quoted you less. A cheaper fee for a smaller service is not a saving. Compare what is actually included before you move.
When to do it
Just after a year end is easiest, because you start clean rather than mid period.
That said, do not wait nine months for a tidy date if the current arrangement is actively costing you. A mid year move is slightly more admin for the new firm and that is their problem, not yours.
What actually happens
- You tell your current accountant you are moving. An email is enough. You do not owe an explanation.
- The new firm writes to them requesting professional clearance and the handover of records.
- Your old accountant hands over the accounts, tax returns, and the bookkeeping file.
- You authorise the new firm with HMRC for the taxes they will handle.
Your part is steps one and four. The rest happens without you.
What to watch for
Outstanding fees. An accountant can hold records against unpaid invoices. Settle what you owe first or it slows everything down.
Your engagement letter. Check the notice period. Most are short but a few are not.
Cloud accounting ownership. If your Xero or QuickBooks subscription is in your accountant’s name, it has to be transferred to you. Do that before you tell them, because it is one of the few things that can get awkward.
Before you move
Ask whoever you are talking to how many CIS returns they file a month, how they treat retention, and when management accounts arrive after month end. Those three answers tell you most of what you need.
See whether we are a fit or book a call.