5 Signs it Might be Time to Switch Accountants

Reading time: 7 minutes | Topic: Business Advisory

Many business owners only think about their accountant at tax time. But a great accountant should provide value all year round, helping you stay compliant, plan ahead, and make informed business decisions.

If any of these signs sound familiar, it may be time to consider a change.

1. You Only Hear From Them at Tax Time

A good accountant keeps in touch throughout the year, not just when your tax return is due. Regular advice and proactive communication can help you avoid issues and uncover opportunities before they arise.

2. You're Not Sure What You're Paying For

If your fees are unclear or every question comes with an extra charge, it's worth asking whether you're getting the value and transparency your business deserves.

3. They Don't Understand Your Business

Your accountant should understand your industry, business structure, and goals. Advice should be tailored to your situation, not based on a one-size-fits-all approach.

4. You Don't Feel Comfortable Asking Questions

You should never hesitate to contact your accountant. If you're avoiding conversations because you're worried about the cost or feel intimidated, the relationship isn't working for you.

5. They Only Focus on Compliance

Lodging tax returns is important, but it's only part of the job. A great accountant also helps you improve cash flow, plan ahead, and make smarter financial decisions throughout the year.

How to Switch Accountants in Australia: Step by Step

One of the biggest misconceptions is that changing accountants is difficult.

In reality, the process is straightforward.

Step 1: Choose Your New Accountant

Start by finding an accountant who understands your business, communicates clearly, and offers proactive support throughout the year.

An initial consultation is a great opportunity to ask questions and ensure they're the right fit.

Step 2: Sign an Engagement Letter

Once you've decided to move forward, your new accountant will provide an engagement letter outlining the services they'll provide.

This formally begins your new working relationship.

Step 3: Your New Accountant Contacts Your Previous Accountant

You don't need to chase paperwork yourself.

Your new accountant will usually contact your previous accountant to request the relevant financial records, tax returns, depreciation schedules, and other important documents.

This is standard practice within the accounting profession.

Step 4: Update Your Tax Agent Details

Your new accountant will typically arrange the necessary authority to act on your behalf with the Australian Taxation Office (ATO).

This allows them to manage your tax matters moving forward.

Step 5: Plan Ahead

Once everything has been transferred, your new accountant can review your current position, identify opportunities, and help you build a strategy for the financial year ahead.

Instead of simply preparing your next tax return, they'll focus on helping you make better financial decisions throughout the year.

Common Concerns About Switching Accountants

Will my old accountant make switching difficult?

In most cases, no.

Professional accountants are expected to cooperate during the transition process by providing the necessary records once any outstanding accounts have been settled.

Will I lose my tax history?

No.

Your previous tax returns and financial records remain available and can be transferred to your new accountant.

Your financial history doesn't disappear simply because you change advisers.

Is there a bad time to switch?

You can switch accountants at any time.

Many businesses choose to change shortly after the end of the financial year, but if you're not receiving the support you need, there's no reason to wait.

Does it cost anything to switch?

Most accounting firms don't charge a separate fee to onboard new clients.

Your previous accountant may require any outstanding invoices to be paid before releasing your records, but the switching process itself is generally straightforward.

What if the ATO is already communicating with my current accountant?

That's perfectly manageable.

Once your new accountant is authorised to act on your behalf, they can communicate directly with the ATO and continue managing your tax affairs.

It Might Be Easier Than You Think

If you've read this far, chances are you've already been thinking about making a change.

The best accountant isn't simply someone who helps you lodge your tax return. They're someone who helps you make smarter financial decisions all year round, giving you confidence that your business is moving in the right direction.

The best time to switch may have been last year.

The second best time is now.

If you're looking for an accountant who offers proactive advice, transparent communication, and year-round support, we'd love to have a conversation.

Ready to Make the Switch?

If you've been thinking about changing accountants, there's no need to put it off. The process is simpler than most business owners expect, and you don't have to manage it alone.

At Margins Accounting, we take care of the transition for you. From contacting your previous accountant and transferring your records to setting you up for the new financial year, we'll guide you through every step.

Book a no-obligation consultation today and discover how easy it is to switch to an accountant who works with you all year round.

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This article is intended as general information only and does not constitute tax advice. Tax rules change regularly, always consult a registered tax agent for advice specific to your circumstances.