Changing Accountants

Bismarck

Hi, a word of advice please?

If you've had the same firm of accountants doing your books for several years, and you come to "renewal" time , what are your options?

We get charged once a year when our company accounts are finalised but before I go into a discussion about next year, I want to know if there's some accountants moral code of handover where if I signed up with someone else, my current accountant would have to give me all their workings and data on my company and/or hand them over to the next accountants.

I mean, ther must be some company data that they have on file to do their job, are they required by law to pass it on if they are not the representatives any more/

thanks

ukbill69

Im not sure they have to give it by law, but im sure if you nice to them and ask for the files, they will sure give them to you. Anyways im sure you should have a copy of everything they have sent, I know I have.

Maybe tell them where they are going wrong and they might be able to help you.

Pennywise

Accountancy practices that are regulated by the "chartered" bodies have to abide by a code of conduct which basically means that the outgoing accountant has to provide basic "handover" information to the new accountant, which for a typical business will be

1. A "trial balance" at the previous year end with supporting schedules showing how the balance sheet was made up.

2. Copy of the tax calculations for the previous year, i.e. showing the adjustments between profit in the accounts and profit for tax, including capital allowance balances.

3. Details of any relevant elections, reliefs or claims made in the past that may be relevant for the future, i.e. hold over or roll over relief elections.

Your new accountant should have no problems in taking over your affairs once they receive this information.

If your old accountant doesn't provide this handover information to the new accountant, you can complain to their professional body. If they aren't "chartered" and not regulated, then sorry but you've no-one to complain to and have to hope for co-operation.

You have to remember that the accountants working papers are their own legal property and you don't actually have right to them - the most you can hope for is this "handover" information. They won't give you "their files" as they are their property and they need to keep their files for monitoring & insurance purposes - if you ask nicely and are willing to pay their time, they may photocopy relevant sections of their previous files for you, but aren't actually obligated to do so. To maximise their co-operation, you should out of courtesy tell your old accountant that you're moving and make sure that outstanding bills are paid. If at all possible, leave them on good terms as you never know what help you'll need from them in the future (ie in case of enquiry into past years' accounts).

Bismarck

thanks very much...both of you.will certainly bear this in mind. be back later...