What are the signs it’s time to replace your accountant?

Common triggers include slow responses, missed BAS or tax deadlines, limited advisory input, frequent errors in bookkeeping or payroll, poor software knowledge, or feeling like you have outgrown the current firm.

What are the key steps to switch accountants in Australia?

1) Shortlist a new accountant and agree scope. 2) Authorise the new provider to request professional clearance and records from your old accountant. 3) Update ATO client–agent links and, if relevant, ASIC registered agent via Form 362. 4) Transfer software access and data (Xero, MYOB, QuickBooks). 5) Hand over open jobs (BAS, tax returns, payroll, year-end). 6) Close out final fees and remove old access.

Do I need to notify the ATO when I change accountants?

Your new tax or BAS agent will create a client–agent link in Online services for agents. You may need to accept the link via Relationship Authorisation Manager (RAM) if requested. Removing the old agent can also be done through Online services for business.

What is professional clearance and do I have to get it?

Professional clearance is a courtesy and compliance step where your new accountant writes to your old accountant to confirm there is no professional reason not to accept the engagement and to request transfer of records. It helps ensure a clean, ethical handover.

How long does it take to replace an accountant?

Simple switches can be completed in 1–2 weeks. If there are backlogs, software migrations, complex groups or year-end deadlines, plan 3–6 weeks. Timeframes improve when you provide authorities quickly and keep communication clear.

What should be included in the handover pack?

Typically: prior year financials and tax returns, workpapers, depreciation schedules, BAS lodgement history, payroll data and STP reports, superannuation clearing records, ASIC details, software backups or advisor access, and any open ATO correspondence.

Will my old accountant cooperate?

Most do. They may request settlement of outstanding fees before releasing records. If they are a TPB-registered agent, they should act professionally and provide reasonable access to your information once you authorise the transfer.

How to Replace Your Accountant | What to Do Before You Switch

How to replace your accountant: the simple 6‑step process

Use this practical flow to change accountants with minimal disruption.

Define the outcome. List what must improve: on‑time BAS, fewer errors, better reporting, proactive tax planning, industry expertise, or clearer fees.
Choose your new provider. Shortlist via the Find an Accountant page or the Accounting Services hub. Confirm TPB registration, scope, software proficiency (Xero/MYOB/QuickBooks), and response times.
Authorise the handover. Sign an engagement letter and authority so your new accountant can request professional clearance and collect your records from the previous firm.
Transfer access. Update ATO client–agent links, move or add advisor roles in your accounting software, and review bank feed and document storage access.
Handover open work. Provide deadlines and pack documents for BAS, payroll, tax returns, ASIC agent changes, finance applications and any software migration.
Close out and remove access. Pay any final invoices to unlock records, confirm what the old firm will finish, and remove their access to software, bank data and portals.

Start my handover Get answers in the Help Centre

Australian context to keep in view

TPB registration: Tax and BAS agents must be registered with the Tax Practitioners Board. Check registrations and professional memberships.
ATO links: Your new agent will create an ATO client–agent link. You may need to approve it via Relationship Authorisation Manager (RAM). Remove your old agent once the switch is confirmed.
ASIC agent: For companies, update the ASIC registered agent using Form 362 so annual reviews and company changes go to the right firm.
Payroll/STP: Avoid switching around STP finalisation. Plan the cut‑over just after a pay run and ensure super clearing house and awards settings are correct.
Software ownership: Ensure the business, not the old firm, owns the accounting file and subscriptions. Transfer advisor roles and export backups before removing access.

Talk through your situation

What to compare before you commit

Scope

Confirm what is included: bookkeeping cadence, BAS, tax returns, ASIC, payroll, year‑end workpapers, management reporting and advisory sessions.

Software fit

Check hands‑on experience with your stack (Xero, MYOB, QuickBooks, Dext, Hubdoc, payroll add‑ons). Ask them to outline your end‑to‑end workflow.

Turnaround and communication

Agree response times, meeting rhythm, and escalation during deadlines. Who is your day‑to‑day contact and who signs off technical work?

Commercial fit

Compare fixed fee vs hourly, inclusions, change‑order policy, notice periods and how they approach proactive tax planning and cash‑flow reporting.

Compliance coverage

Confirm they will manage ATO agent links, ASIC agent updates, super compliance, STP, TPAR (if relevant) and lodgement calendars.

Security & data

Ask about file ownership, backups, MFA, document portals and how access is granted and revoked for staff and advisors.

See small business options Get matched to a provider

Handover checklist (use before you switch)

Engagement letter signed with the new accountant, with scope and fees.
Authority provided for professional clearance and record transfer.
Copy of prior year financials, tax returns and depreciation schedules.
BAS lodgement history and any ATO payment plans or correspondence.
Payroll data: employee details, leave balances, awards, STP reports, super clearing history.
Software access: owner admin rights confirmed, advisor invites for new firm, full data export/backup saved.
ASIC details and Form 362 prepared (if a company is involved).
Open tasks with dates: next BAS due, next pay run, upcoming tax deadlines, finance applications.
Outstanding invoices with the old firm finalised or a plan agreed.

Request a switching checklist

What to say to your current accountant

You do not need a long explanation. Keep it professional and factual. Let them know you are appointing a new accountant and that they will contact the firm for professional clearance and records. Ask for:

A summary of any open matters and where they are up to.
A list of documents they will provide to your new accountant.
Final invoice and any credits or trust‑account funds held.

Most firms cooperate once you confirm authority. If there are outstanding fees, they may ask you to settle before releasing some materials. Your new provider should help manage this respectfully.

Get help with the email wording

When replacing your accountant is the right call

Missed or late BAS/tax lodgements affect cash flow and ATO penalties.
You only hear from the firm at year‑end and get little proactive advice.
Bookkeeping or payroll errors keep repeating and aren’t addressed at the root cause.
They don’t work in your software or cannot explain the workflow clearly.
Your business has changed (team, revenue, funding, complexity) and the service has not kept pace.

If one or more of these apply, begin the process above or use our Help Centre to narrow the issue first.

Best next steps

Write a clear brief: the current pain, your deadlines, and the first 90‑day outcomes you want. Shortlist two providers from the Find an Accountant page, ask them to outline the handover, then choose the firm that explains the work, sets expectations and owns the timeline.

If your need is narrower, move into the relevant pillar page before you commit:

Bookkeeping Services for cleanup and monthly processing.
BAS Agent Services for GST and lodgement support.
Payroll Services for awards, STP and super compliance.
Tax Accountant for planning and returns.
New Business Accountant for startups and setups.

Speak to a switching specialist See how it works

Frequently asked questions

Is it hard to change accountants?

No. With a clear brief and signed authority, your new firm will drive the process, request professional clearance, update ATO/ASIC links and collect records. Most switches are smooth when deadlines are mapped at the start.

Do I have to tell my current accountant why I’m leaving?

No. Keep it brief and professional. Confirm that a new firm is appointed and that they will be in touch. Your new accountant can handle the detailed handover.

Will I lose my history or data?

You should not. Ensure your business owns the software subscription, export full backups, and give your new accountant advisor access before removing the old firm. Keep copies of financials, tax returns and workpapers.

What timing should I avoid?

Avoid switching right before BAS lodgement, payroll finalisation, or a major finance application unless the new firm can prioritise triage. If you must switch urgently, focus on the immediate lodgement first, then tidy up.

How much does switching cost?

Many firms include a standard handover in their onboarding fee. Extra costs arise when there is a backlog, cleanup, software migration or complex group structure. Ask for a scoped estimate before you proceed.

Where should I start?

Start by outlining your goals and deadlines, then use Find an Accountant or the form below to get help choosing and onboarding the right provider.

How to Replace Your Accountant