Time to Switch Accounting Firms?
Choosing the right accounting firm can make all the difference in how confidently you run your business. A great accountant feels like a partner: proactive, communicative, and invested in your financial health, but if that partnership starts feeling one-sided or outdated, it might be time to look elsewhere.
Here are five signs it may be time to move on and how to make the transition without disrupting your finances:
1. You’re Doing Too Much of the Work Yourself
If you’re constantly chasing down answers, reconciling things your accountant should handle, or explaining your business processes repeatedly, something’s off and it may be time to switch accounting firms. Your accounting firm should reduce your workload, not add to it. When you’re consistently filling in their gaps, it’s a clear sign that your support system isn’t working.
2. Communication Is Slow or Unresponsive
Timely responses matter, especially around payroll deadlines, tax season, or when you’re making financial decisions. When you frequently wait weeks for answers, your business loses momentum. A good firm communicates clearly, proactively, and respectfully.
3. They Don’t Understand Your Industry
Industry-specific knowledge is essential whether you run a restaurant, a consulting practice, an online store, or a construction company. If your accountant doesn’t understand the nuances of your market, they may miss tax incentives, overlook compliance requirements, or give generic advice that doesn’t move your business forward.
4. There’s No Strategic Guidance
Many business owners want more than basic bookkeeping and annual tax filing. They want planning, insights, and recommendations. If your accountant only shows up once a year and never explains what your numbers mean, you’re missing out on valuable guidance that helps you grow and stay compliant.
5. Your Firm Isn’t Keeping Up with Technology
Modern accounting relies on cloud platforms, automation, digital record-keeping, and real-time dashboards. If your accountant still relies heavily on spreadsheets, paper processes, or manual data entry, you’re likely paying for inefficiency and missing out on streamlined systems that save time and reduce errors, which is another red flag to switch accounting firms.
How to Switch Accounting Firms Without the Stress
Switching accounting firms is more common than you might think and it can be done smoothly. Here are a few steps that will help with that process:
Step 1: Review Your Engagement Letter
Before making any changes, check the termination terms in your current engagement agreement. Most firms require written notice, and many outline what they will (and won’t) transfer upon exit.
Step 2: Choose Your New Firm
Line up your new accounting partner before ending the old relationship. This ensures continuous support and avoids gaps in payroll, bookkeeping, or tax deadlines.
Step 3: Request a Clean Handoff
Ask your outgoing firm for:
- A Current Status List
- An Open Items List
You should be able to remove the prior firm from your accounting software access, but if there is no accounting software, also request:
- A Current Trial Balance
- Bank Reconciliation Reports
- General Ledger Detail
- Payroll Records
Step 4: Set Expectations Early with Your New Firm
They should verify the following, but if they don’t – make sure you do:
Clarify services, deliverables, communication preferences, software platforms, and reporting schedules upfront.
Step 5: Take Time to Review Your Systems
Changing firms is a great opportunity to clean up workflows, streamline your chart of accounts, and adopt better accounting technology. Use this transition to upgrade, not just replace.
Switching accounting firms can feel like a big step, but staying with the wrong one can cost you time and money. The right firm should feel like an extension of your team, responsive, knowledgeable, and committed to helping you make smart financial decisions. If any of the signs above sound familiar, consider this your invitation to explore better options. A smooth transition is absolutely possible with the right preparation, and your business deserves support that truly matches its goals and potential.
If you’re thinking it’s time to interview new accounting firms, Mod Ledger would be honored to be on your list, to see if we’re the right fit.
