A good accountant is a valuable asset to have.
They keep your financial records spotless and secure, ensure you’re compliant, prepare your key financial statements and manage payroll. They also act as your advisor, offering valuable proactive insights to help you make smart decisions that drive business success.
However, what happens when you’re no longer overly happy with the service they’re providing, or you feel they’re no longer the best fit for your business? It may be time to consider breaking up with them.
They’ll get over it: your business may not
Changing accountants might seem like a hassle and awkward (it’s human nature), to say the least, especially if you’ve worked with them for years.
But moving on to a fresh financial partnership is a common occurrence in business so it shouldn’t be avoided for fear of the paperwork or a difficult conversation. They’ll get over it; your business may not.
Despite this, it’s still a big decision. So, before you bite the bullet and say goodbye, you want to be clear on your reasons—and be satisfied with them.
Related: What is an accountant? What is a business advisor? Here’s the difference
Signs it’s time to say goodbye
To help you get this clarity, here are some key signs of a bad accountant and instances where it’s definitely time to call it quits and find a new one:
- Errors in their work – We don’t mean one or two. We’re talking about repeated errors that lead to a flood of paperwork and follow-up letters to fix them. A good accountant is diligent and doesn’t let this happen.
- Last-minute requests for information – This indicates poor planning and a lack of proactive tax preparation. It can add unnecessary stress to your financial management and result in missed opportunities.
- You keep getting nasty surprises – If you’re repeatedly hit with unexpected issues, such as extra fees or unexpected tax bills, it indicates a serious lapse in your accountant’s planning and oversight.
- You’re always chasing reports – If your accountant has your information for ages but can’t deliver reports such as financial statements, budget forecasts or detailed performance analyses in a timely fashion.
- You have ATO arrangements in place – Though your obligations are ultimately down to you, if your accountant isn’t offering proactive advice to help you find alternative solutions and/or address underlying business issues, why not?
- They condone tax evasion – if your accountant is encouraging or turning a blind eye to tax evasion, that’s a big no. Not only is this illegal and unethical, but it also exposes you to significant legal risks and potential penalties.
- You’re not receiving proactive advice – A good accountant should not only react to your financial issues but also anticipate potential challenges and opportunities before they arise. Bad accountants rely on general market advice.
- Your structure isn’t serving you – If you’re a growing business with a very simple structure or your structure is overly complicated, is your accountant providing advice on alternatives? If not, they may be out of their depth.
- You often can’t get hold of them – If you frequently find it difficult to reach your accountant, this is a major red flag. Reliable access to your accountant is essential for addressing urgent issues, getting timely advice and staying on top of your financial matters. Sure, they may be busy, but they’re also showing they don’t have time for you.
Have you simply outgrown them?
Sometimes, it might be time to break up, not because of something they did or didn’t do, but simply because your business has outgrown them. Here are some instances where this might be the case:
- You’re using your parent’s accountant – Just because your parents use a certain accountant, and they seemed fine at the start, this doesn’t mean they’re going to serve your business best now.
- You’re struggling with growth challenges – If your accountant seems overwhelmed or unsure about addressing the new challenges and opportunities that come with business growth, it might be time to seek someone with more experience in scaling businesses.
- You’ve seen increased business complexity – As your business grows and becomes more complex, if your accountant struggles to keep up or handle more sophisticated financial issues, it may indicate a need for more advanced support.
- There’s a specialisation mismatch – If your accountant’s expertise doesn’t align with your industry’s specific needs, you might need someone who understands the unique challenges and opportunities of your sector.
Ultimately, the right accountant or financial professional should be a partner who adapts with you and helps you navigate each stage of your business journey effectively.
How to break up with your accountant
So you’ve decided breaking up with your accountant is a good idea. You’ve found one you like with a good reputation that’s better suited to your needs (make sure you ask the right questions), but what are the next steps?
You just need to tell them.
Yes, it may not be fun. But despite the initial disappointment, most qualified accountants will take it in their stride. As a business owner you should be used to difficult conversations by now! Thinking can often be worse than doing.
Three things you need to do at this point are:
- Specify the date you want their services to end and the new to begin
- Settle any outstanding fees you owe them
- Confirm how they’ll be transferring your files to your new accountant
Once this is done, your new accountant will contact them to request the information and liaise with them. They’ll do all the hard work for you in that regard. The ATO process when coming onboard as a new client does require some of your time, and can be challenging, but your new accountant should assist you through that process.
One final word of advice: be sure to give your old accountant feedback if requested so they can improve their services for others.
Think it’s time to break up with your accountant? Contact our team today to set up a meeting so we can chat about how we might be able to serve you better.
