Thinking of changing your accountant? Before making your decision, think about the reasons why you want to change accountants and the steps to take? Are all offers equal? What are the obligations?
How to change accountants?
This decision first requires finding a new accounting firm. The latter will have you sign a new engagement letter. You can then orally contact your new accountant to explain the reasons for your departure if you wish. It's not an obligation. On the other hand, confirm by registered letter your departure from your current accounting firm.
Change accountants during the year?
The departure conditions are listed in your mission letter. It is often a period of 3 months notice before the closing date of the financial year. Thus, for an executive wishing to entrust his balance sheet starting on 01/01/2021 to a new chartered accountant, he must serve it before September 30, 2020 by registered letter.
This means that your old accountant will do your balance sheet on December 31, 2020 and that the new one will not take over until January 1, 2021.
Contact between the two accountants
The new chartered accountant must contact his colleague to notify him of the resumption of the file. It is rare for the latter to object. However, make sure you have paid his fees, or if not, initiate a payment plan.
Start with the new accountant
Finally, you will find yourself at the beginning of the year with 2 accountants.One who starts the new year and the other who finishes the last fiscal year.The latter will communicate all the elements to allow the new to continue the mission such as the balance sheet for example.
Why change your accountant?
Generally, managers change very few accountants. But this characteristic is evolving. Now entrepreneurs are looking for advice, immediate information and pricing. Some people therefore no longer hesitate to change their accountants even during the year if they feel that they are not receiving enough support.
However, the balance sheet period is often the most favorable time. Why ? It is often at this point that the manager discovers the performance of his business. If the company has had a good year, it will pay a maximum tax at the time of the corporate tax balance. On the contrary, if his company has performed poorly, the manager knows that his bank rating will collapse. Consequently, he will have to give up borrowing and development possibilities. He understands at this moment that he does not have a dashboard or very effective monitoring of his activity.
Generally, the leader begins to ask questions and envisions a radical change. But why is it appropriate to change the accountant or the methodology once and for all? Let's make a point together.
The expectations of the business manager
In general, entrepreneurs do not want to deal with the tax, accounting and social formalities of their businesses. They prefer to focus on their business. This is the main reason why they use accountants.
The problem is that by outsourcing these services, the manager is sometimes cut off from all management information. Indeed, almost all business leaders have no idea of the performance of their business, except once a year, during the review.
Finally, in wishing to get rid of his accounting obligations, the manager forgot to be a manager.
When we talk about management, we are simply talking about its turnover, its expenses, the state of its cash flow, etc. Management allows you to anticipate certain deadlines.
For example, which manager knows the amount of VAT to pay 20 days before the deadline to prepare? Almost nobody ! Most discover it 3 days after paying it!
Qualities sought by an accountant
Finding the right accountant before you change them is one of the best investments you can make.
In addition to the income tax returns, the preparation of the pay, the writing of a general assembly, an accountant can also be useful to you in the management of your company. It can provide you with precious tools allowing you to save time:
- Management of mileage allowances,
- Expense report,
- Electronic document management,
- Track all of your bank statements from all your accounts in real time and in one space,
- Real-time income statement,
- Predictive income statement,
- Additional indicators selected by you,
- And many other useful tools for the complete management of your activity.
What matters in choosing your accountant is that it meets your needs.