What happens if I change accountants mid-year?

Why people switch accountants mid-year

Changing accountants partway through a financial year is far more common than most people think. Sometimes it’s prompted by a practical issue—your business grows, you hire staff, you start trading internationally, or you suddenly need more proactive tax planning. Other times it’s emotional: slow replies, unclear fees, constant last-minute panics, or a sense that you’re not being listened to. And occasionally it’s simply circumstantial: your accountant retires, merges into another firm, relocates, or changes their service model.

Whatever the reason, the central question is usually the same: “Will switching mid-year mess things up?” The reassuring answer is that it doesn’t have to. In most cases, changing accountants mid-year is manageable and can be done smoothly, as long as you handle the handover properly and understand what actually changes—and what doesn’t.

This article explains what happens when you switch accountants mid-year, what you should prepare, what your new accountant will need, how fees and responsibilities typically work, and the most common pitfalls to avoid. The goal is not just to make the switch possible, but to make it feel controlled and beneficial.

What doesn’t change when you switch

Before getting into the mechanics, it helps to clarify what remains constant.

Your legal obligations do not change just because you’ve changed accountants. Tax deadlines, filing requirements, payroll compliance, and the need to keep proper records are still your responsibility as the business owner or individual taxpayer. Even if your accountant makes an error, tax authorities typically hold you responsible for the accuracy of submissions made on your behalf.

Your accounting records also don’t reset. The financial year is still the same financial year. Your bookkeeping data still has to reconcile from the start of the year through to the end, and the accounts need to tell one coherent story across the entire period. A new accountant will work with what exists and may recommend improvements, but they can’t pretend the first half of the year didn’t happen.

And finally, your taxes aren’t automatically recalculated just because you switch. If something has already been filed—such as a VAT return, payroll submission, or an interim tax estimate—that filing stands unless you later amend it. A new accountant may advise amendments where appropriate, but the change of adviser itself doesn’t trigger a forced revision.

What does change: adviser access, approach, and continuity

What does change is the person (or firm) interpreting your situation, advising you, and interacting with tax authorities on your behalf. That can affect:

Access and representation: Your new accountant will typically need to be authorised to act for you. Depending on the systems involved, that might mean new online authorisations, agent appointments, and permissions to access tax accounts, payroll portals, or other filing platforms.

Method and workflow: Different firms use different bookkeeping tools, different processes for collecting information, and different approaches to timing. One accountant may work quarterly and proactively; another might operate in bursts around filing deadlines.

Interpretation and judgement: Accounting has rules, but there are also many choices: how to treat certain expenses, how to recognise revenue, whether you’re claiming everything you can claim, how you structure remuneration, how you plan for cash flow, and how conservative you are with estimates. A new accountant may take a different view, and that can be positive—provided it’s managed carefully.

Continuity risk: The handover is the danger zone. If documents, working papers, or context do not transfer cleanly, your new accountant may have to reconstruct decisions from scratch. That can cost time, money, and sometimes creates filing risk.

The handover process: what typically happens step by step

While the details vary, most mid-year accountant changes follow a similar pattern.

1) You choose a new accountant and confirm scope

You’ll agree what the new accountant is taking on. Is it just year-end accounts and the tax return? Or also bookkeeping, payroll, VAT, CIS, management accounts, cash flow forecasting, R&D claims, company secretarial work, or personal tax?

Mid-year changes are often where scope confusion causes headaches. For example, you may assume the new accountant will fix bookkeeping issues from earlier in the year, while they assume they’re picking up from “today forward.” Get clarity on whether they will review, correct, or rework earlier months—and what that means for fees.

It’s also wise to ask how they handle transition: do they request prior-year working papers, do they do a cleanup review, do they offer a structured onboarding, and how quickly do they aim to get you “stable”?

2) You terminate or pause the old engagement

If you’re leaving your previous accountant, you’ll normally notify them in writing and ask what the offboarding steps are. Many firms are professional about this and will provide information promptly. Some may require you to settle outstanding invoices first, and some may charge for preparing handover packs, depending on their terms and the work involved.

It’s important to keep the tone neutral and practical. You may feel frustrated, but a hostile exit can slow down the information transfer and make the transition harder than it needs to be. Treat it as an administrative change: “We’ve decided to move our accountancy services elsewhere. Please advise what you need from us and what you can provide to facilitate the handover.”

3) Professional clearance and information requests

In many jurisdictions, accountants follow professional etiquette and rules that involve contacting the outgoing accountant. This step is often called “professional clearance.” The new accountant asks whether there is any reason they shouldn’t accept you as a client, whether there are outstanding concerns, and they request information needed to take over properly.

This isn’t gossip. It’s a risk-control step. If your previous accountant knows of issues—such as suspected fraud, non-cooperation, missing records, or disputes about fees—they may disclose relevant information. Most of the time, the response is straightforward: no issues, and here are the requested documents.

4) Data transfer: records, accounts, and working papers

The smoothness of your transition depends on the quality of what transfers. At a minimum, your new accountant will need your bookkeeping records and supporting documentation. But ideally, they also receive the “working papers” behind anything already prepared or filed.

Working papers might include reconciliations, schedules for fixed assets and depreciation, details of director’s loans, VAT calculations, payroll summaries, journals posted, year-to-date trial balance, and notes explaining key accounting decisions. Without these, a new accountant can still proceed, but they may need to redo work to be confident the numbers are correct.

5) Agent authorisations and system access

To represent you with tax authorities, your new accountant may need you to approve an authorisation request. Separately, you may need to update access in accounting software, payroll tools, or payment platforms. If you’re using cloud bookkeeping, you can typically invite them as a user or transfer the subscription.

This step is not just administrative. It determines who can file returns, who can view your tax position, and how quickly issues can be resolved. Delay here is one of the most common reasons transitions drag on.

6) Review and “stitching” the year together

Once your new accountant has access and data, they’ll usually perform a review of year-to-date activity. Think of it as “stitching together” the first part of the year (handled by the old accountant or by you) with the remaining months (which the new accountant will oversee).

If they find mispostings, missing reconciliations, or treatment they disagree with, they’ll discuss options: correct now, correct later, disclose and amend, or leave as-is if immaterial. The objective is a clean baseline so the remainder of the year runs smoothly.

Who is responsible for what after you switch?

This can feel confusing because multiple parties have touched the same financial year. A helpful way to think about it is:

You are always responsible for ensuring your submissions are accurate and your records are kept properly, even if you delegate tasks to professionals.

Your outgoing accountant is responsible for the work they performed, and for acting professionally in providing information and handing over records that belong to you (subject to any legal rights they may have regarding unpaid fees and their own working papers).

Your new accountant is responsible for the work they accept and complete going forward, and for applying appropriate professional judgment when relying on prior work. They may not automatically “sign off” the previous accountant’s approach without review; instead, they will decide how much reliance is reasonable based on documentation quality and risk.

In practice, your new accountant will usually focus on ensuring the final year-end accounts and tax filings are correct. That means they may revisit earlier months if needed, because the year-end numbers incorporate the entire year. Even if your previous accountant filed interim returns, the year-end process can still require adjustments.

What happens to filings already submitted?

If filings have already been made during the year—such as payroll submissions, sales tax/VAT returns, or quarterly estimated taxes—those filings remain part of your compliance history. Switching accountants doesn’t cancel them.

However, your new accountant may identify issues that suggest amendments are appropriate. Common examples include:

Misclassified expenses or incorrect input tax claims on a VAT return

Payroll errors affecting year-to-date totals

Incorrect treatment of benefits, reimbursements, or director payments

Missed deadlines or penalties that can potentially be appealed

Amending returns can be straightforward in some systems and more involved in others. It also raises a practical question: do you want your new accountant to spend time correcting the past, or do you want them to stabilise the future and handle corrections only if they materially affect taxes or compliance? There isn’t a universal right answer—it depends on the magnitude of the issue, your risk tolerance, and cost.

Will changing accountants mid-year cost more?

It can, but it doesn’t always. The cost impact depends on how clean your records are, how much work has already been done, and whether the transition creates duplication.

There are a few common cost drivers:

Duplicate onboarding and review: A new accountant needs time to understand your business, systems, and history. If the old accountant’s records and working papers are minimal, the new accountant may need to redo reconciliations to be comfortable signing off year-end accounts.

Data cleanup: If your bookkeeping is inconsistent—uncleared transactions, missing receipts, unreconciled bank accounts, poor categorisation—your new accountant may recommend a cleanup project.

Mid-year complexity: If the switch coincides with changes like new revenue streams, cross-border sales, hiring, or restructuring, the learning curve is steeper.

Unfinished work by the outgoing accountant: Sometimes you’ve paid for certain deliverables that aren’t completed. In that case, you might end up paying twice—once for incomplete work, and again for the new accountant to finish it.

On the flip side, switching can reduce costs if your previous accountant was overcharging for your needs or billing for reactive firefighting that a better process prevents. A more proactive accountant may help you avoid penalties, reduce tax through planning, or save internal time—which can outweigh onboarding costs.

What happens to your accounting software and subscriptions?

If you’re using cloud accounting software (and many people are), you usually keep the same subscription and simply change who has access. That is often the easiest path because it preserves continuity: transactions, audit trail, bank feeds, and historical data remain intact.

However, sometimes an accountant has set up the software under their own firm’s subscription or uses a partner plan where they control the licence. In that case, you’ll need to transfer ownership or create a new subscription and migrate data. Data migration mid-year is possible, but it adds risk and complexity, especially around bank feeds, VAT setups, chart of accounts mapping, and historical attachments.

When considering migration, you’re balancing two things:

Continuity: Staying on the same platform is simpler and often safer mid-year.

Long-term fit: If your new accountant specialises in a different system that will serve you better, a migration might be worth it—but ideally planned carefully and not rushed.

If you do migrate, ensure you have backups and a clear cutover plan: what date you switch, how opening balances are set, how you handle outstanding invoices, and how you preserve evidence for prior filings.

Payroll and employee reporting considerations

Switching accountants mid-year can be especially sensitive if your accountant runs payroll. Payroll is cumulative: year-to-date figures matter for tax withholdings, social contributions, benefits, and reporting. A handover error can cause incorrect payslips, incorrect employee tax, or mismatched year-end summaries.

To make payroll handovers safer, your new accountant will typically request:

Year-to-date payroll reports (by employee)

Details of pay frequencies, salary changes, and bonuses

Benefits and deductions setups

Employer contribution details (pension, etc.)

Copies of submissions already made and any notices received

Payroll software access or export files

The key principle is continuity: the new payroll operator must import or recreate year-to-date balances accurately so that future payroll runs calculate correctly.

If payroll is currently messy—late runs, adjustments every month, unclear benefit treatment—it might be worth scheduling a “stabilisation month” where the new accountant runs payroll with extra checks before the next major reporting point.

VAT, sales tax, and indirect tax handover issues

Indirect taxes such as VAT or sales tax can be a common source of problems during a mid-year accountant change because they operate in cycles and rely heavily on correct bookkeeping categorisation.

Potential issues include:

Wrong tax codes: Items coded as standard-rated vs zero-rated vs exempt incorrectly.

Partial exemption or special schemes: If you use any special calculation methods, a new accountant must understand them and obtain prior calculations.

Timing differences: Accrual vs cash accounting methods, invoice date vs payment date rules, and credit note handling can all cause discrepancies if misunderstood.

Reconciliations: The VAT control account should reconcile to submitted returns. If it doesn’t, the new accountant may need to investigate.

When switching mid-year, it’s smart to hand over a clear schedule of VAT returns filed to date, amounts paid or refunded, and how those numbers are reflected in the ledger. If this isn’t provided, the new accountant may take a cautious approach, potentially reviewing multiple periods to rebuild a reconciliation.

Year-end accounts: how your new accountant approaches the “whole year”

Even though you switched mid-year, the year-end accounts cover the entire financial year. That means your new accountant will likely do at least a high-level review of the whole period, including months they didn’t manage day-to-day.

This is normal and protective. They’re putting their name to the year-end work, so they need reasonable confidence that the numbers are not materially misstated.

Depending on complexity, the new accountant may:

Check bank reconciliations for the full year

Review key expense categories for consistency

Assess revenue recognition and cutoff around year-end

Review director/shareholder transactions throughout the year

Confirm fixed asset purchases and depreciation schedules

Reconcile payroll and taxes to filings

Validate VAT/sales tax positions and liabilities

If the early part of the year is poorly documented, they might need to do deeper work on those months, which can feel frustrating (“Why am I paying you to review what the last accountant did?”). But it’s often the only way to ensure your final filings are correct and defensible.

Will the new accountant “criticise” the old one?

Sometimes. But good accountants tend to frame it professionally: not “they were terrible,” but “here’s what I’m seeing, here are the risks, and here’s how we can fix or improve it.”

You may hear differences in approach presented as improvements. For example, a new accountant might say your previous chart of accounts was too vague, or that bookkeeping practices aren’t supporting accurate VAT reporting, or that you’re missing out on allowances you could legitimately claim. This can be useful information.

At the same time, be wary of a new accountant who spends too much time attacking the previous adviser without providing clear solutions. What matters is whether the new accountant can create clarity and control going forward.

Common risks when switching mid-year

Switching accountants mid-year is generally safe, but there are predictable risks. Knowing them helps you avoid them.

Incomplete records transfer

If you don’t receive the data you need—trial balance, reconciliations, filings history—your new accountant may have to recreate information, increasing cost and delay. Make a checklist early and chase it.

Access delays

If authorisations and software access aren’t granted promptly, your new accountant can’t act. This can lead to missed deadlines or rushed work. Prioritise access as soon as you engage them.

Unclear division of responsibilities

Mid-year switches often create grey areas: who files the next VAT return, who runs this month’s payroll, who handles a tax notice that arrives next week? Assign responsibility clearly, in writing, so nothing falls between two firms.

Hidden problems discovered late

Sometimes the reason you switch is you sense something is off. If there are underlying issues—unreconciled accounts, missing filings, incorrect tax treatments—they may surface later. It’s better to invite an early review and get a realistic picture than to hope everything will “sort itself out” at year-end.

Fee surprises

If you assume the new accountant’s quoted annual fee includes cleaning up the earlier months, you might be surprised. Clarify whether transition work is included, capped, or billed separately.

How to make the change smooth: practical checklist

Here are the most effective actions you can take to make a mid-year switch clean and low-stress.

Collect a full “handover pack”

Ask for a bundle that includes:

Bookkeeping file access or exports

Year-to-date trial balance and general ledger

Bank reconciliation reports

VAT/sales tax returns filed to date and supporting calculations

Payroll year-to-date reports and submissions

Fixed asset register and depreciation schedule

Director/shareholder loan schedules if relevant

Copies of correspondence with tax authorities

Notes on accounting policies or unusual transactions

The exact contents vary by situation, but the principle is the same: don’t just transfer raw data; transfer the reasoning and reconciliations that make the data reliable.

Lock down deadlines and responsibilities

Write down what is due in the next 30–90 days and who is responsible for each item. Include VAT filings, payroll run dates, payment dates, annual confirmation filings (if applicable), and any scheduled instalments. A simple timeline avoids the classic “I thought you were doing that” problem.

Run a transition review

Ask your new accountant to do a targeted health check of the year-to-date records. This can be a defined piece of work: confirm reconciliations, identify risks, and propose corrections. Even if it costs extra, it can save money and stress later.

Keep your own copy of everything

Ensure you have access to your bookkeeping data, copies of submitted returns, and important documents. Even with cloud software, download key reports periodically. This reduces dependence on any one adviser and makes future transitions easier.

Be honest about problems

If you suspect missing documents, cash transactions, late filings, or anything else messy, tell your new accountant early. Surprises are expensive; early disclosure is manageable.

Special scenarios: switching while under investigation or dispute

If you are being audited, investigated, or queried by a tax authority, switching accountants mid-year is still possible, but it requires extra care. Your new accountant will want to understand the status of the enquiry, what has been communicated, and what positions have been taken in prior correspondence.

In these cases, the handover should include:

Full copies of all communications with the authority

A timeline of events and deadlines

The technical basis for any positions taken

Any schedules or calculations previously supplied

Your new accountant may also recommend pausing non-essential changes until the enquiry is stabilised, because changing systems and reclassifying accounts mid-enquiry can create confusion. That doesn’t mean you can’t switch—it just means you should be deliberate and organised.

What if your outgoing accountant won’t cooperate?

Most accountants behave professionally, but occasionally an outgoing firm may be slow to respond, reluctant to hand over documents, or insistent on payment before releasing certain information.

In many cases, delays are not personal—they’re administrative. Firms are busy, handovers aren’t always prioritised, and the request may be sitting in a queue. A polite but firm approach usually works: request a clear list of what will be provided, by when, and follow up consistently.

If the issue is unpaid fees, you may need to resolve that dispute to unlock documents, depending on local rules and the nature of the documents requested. Some materials may legally belong to you (like your original records), while other materials may be the accountant’s property (like certain working papers). Your new accountant can often help navigate this professionally.

If cooperation breaks down entirely, your new accountant can still proceed using your records, bank statements, invoices, and filings history. It may cost more because they must reconstruct information, but it’s still possible.

Should you switch at a “natural breakpoint” instead?

Many people assume they must wait until year-end to change accountants. Sometimes that makes sense, especially if everything is stable and you are close to the year-end anyway. But waiting isn’t always the best option.

Switching mid-year can be advantageous if:

You’re repeatedly missing deadlines or dealing with penalties

You don’t trust the current work quality

You need proactive planning now, not later

Your business has changed and you need different expertise

Your current accountant is unresponsive during critical periods

In these situations, waiting until year-end can mean prolonging risk and frustration. If the relationship is not working, a structured switch now can improve the rest of the year and set up a smoother year-end process.

What to tell your new accountant on day one

You don’t need to provide a novel-length explanation, but you should give a clear, honest overview so they can help effectively. Useful information includes:

Your business model and how you make money

Your current systems: bookkeeping software, payroll tool, receipt capture, invoicing

Any pressing deadlines or letters from authorities

Any known issues: backlog, unreconciled accounts, cash flow strain

Your goals: reduce tax legally, improve reporting, get financing-ready, stabilise compliance

What you liked and disliked about the previous arrangement

This helps the new accountant tailor their approach and avoids misaligned expectations.

How switching mid-year can actually improve your finances

While the transition has administrative overhead, a mid-year switch can create benefits beyond “better communication.” If your new accountant introduces better processes—monthly reconciliations, clearer reporting, proactive tax estimates, timely VAT planning—you may gain visibility into profitability and cash flow that you didn’t have before.

That visibility can change decisions: pricing, hiring, stock purchases, marketing spend, owner withdrawals, or whether you can afford a new lease. In that sense, switching accountants can be a business improvement project, not just a service change.

Also, proactive planning is often time-sensitive. If you wait until year-end, you may miss opportunities to structure payments, pension contributions, asset purchases, or other planning steps in the current year. Switching mid-year can give you the runway to act while it still matters.

Signs your mid-year switch is going well

Within the first few weeks, you should start to see signs that the transition is under control:

Access and authorisations are in place

There is a clear timeline of upcoming deadlines

Your new accountant has reviewed year-to-date numbers and identified key issues

You have a plan for any cleanup work, with transparent pricing

Communication feels predictable: you know how and when updates happen

You receive clearer explanations of what actions you need to take

If you don’t see these signs—if things feel vague, reactive, or perpetually delayed—it may be worth addressing expectations early so the same problems don’t repeat.

Final thoughts: switching mid-year is a process, not a catastrophe

Changing accountants mid-year can feel daunting because money, compliance, and deadlines are involved. But in most cases, it is a manageable administrative process, not a risky leap. The financial year stays the same, your obligations remain, and the core task is simply ensuring continuity of records, access, and accountability.

The biggest determinant of success is not the date you switch—it’s the quality of the handover. If you gather the right documents, grant access promptly, clarify who is responsible for what, and allow your new accountant to review and stabilise the year-to-date position, the transition can be smooth and can even improve your finances and peace of mind.

Most importantly, a mid-year switch is a reminder that accountancy is not only about compliance. It’s also about clarity, decision-making, and support. If your current setup isn’t giving you that, changing accountants—even mid-year—can be the step that turns a stressful year into a controlled one.