How to tell if it’s time to change accountants, what is involved in the process, questions to ask yourself and where to get help with the transition
Whether you’re building new homes, sorting out faulty plumbing, rewiring buildings or installing solar panels – if you are a tradie, you know just how much effort it takes to make sure your business is running smoothly. The last thing you want to be doing at the end of a hectic work day is having to deal with an accountant who does not understand your business needs.
It’s important for you to find an accountant that understands the unique needs tradies have. Luckily for you, the task of changing accountants in New South Wales is a simple process, so you can find a service that is designed to provide tradies with all the assistance they need to run an efficient operation.
Should I change my accountant?
Your accountant plays an important part in the running of your trade business. On top of handling your accounts, they are also responsible for ensuring that your company complies with all tax laws and helping you to operate your business as cost-effectively as possible.
If you feel you aren’t getting the best service for your money from your accountancy firm, it may be time to search for a new one that specialises in accountancy for tradies.
If your accountant is unable to answer your questions or you feel that they are not up-to-speed on account regulations for tradies, then your accountant may no longer be a good fit for your business.
When deciding if you should change accountants, some questions to ask yourself are:
- Do they understand my business?
- Do their office hours suit me?
- Are they easy to contact?
- Am I getting what I pay for?
- Are they up to date with cloud accounting software?
- Will their services suit my needs in the long-term?
Changing to a tradie accountant – what to consider before you make the switch
You want to ensure the process of changing accountants is as simple as possible to minimise disruptions to your business.
Two points to consider before switching accountant include:
Changing accountants shouldn’t be a last-minute decision. If it’s possible, you should find the most convenient time for the switchover between your old and new accountant. Ideally, this would be when there is as little business activity as possible between you and your current accountant such as at the end of the financial year. You should also be communicating with your new accountant to make sure they have the time to receive and process changeover documents from your previous accountant.
For a smooth transfer of accounts, you should ensure all of your bills are paid and neither of you (your accountant and yourself) are waiting on an activity to be completed. Disputes over unpaid fees are the most common cause of delayed transfer between accountants.
Make sure to get a copy of all the documentation like Business Activity Statements, scanned receipts and financial statements that your accountant may have kept or produced for you, so that you can take this to your new accountant. You should also keep a copy at home for your own personal records.
4 easy steps to switching accountants
The relationship between tradies and their accountant is core to the success of their business. Changing accountants is generally a straightforward process but there are certain measures you can take to ensure that common avoidable problems do not occur.
Let’s take a look at the steps involved in the changeover process:
Step 1: Find a new accountant
Some accountants offer a variety of services, while others specialise in certain areas such as accountancy for tradies. Don’t be afraid to call the accountancy firm to explore whether they fully meet your criteria. It’s a great idea to ask them what other types clients they take care of that are in a similar field to yours, to ascertain that they do indeed have a familiarity with your unique business needs.
Step 2: Inform your old accountant
Let your previous accountant know that you’re moving. Your new accountant can also do this on your behalf, and this may be preferable if you don’t wish to have that conversation with them yourself.
Step 3: Get professional clearance
It is common practice for your new accountant to contact your previous accountant to request professional clearance. Your new accountant will also ask for an assortment of information to assist in the transfer.
Step 4: Letter of engagement
Your new accountant will write up a letter of engagement which will include the expectations of each party, the services that are to be provided and the appropriate fees. You will be required to sign the document to begin your contract.
Step 5: Have a planning discussion
Your new accountant should sit down and make the time to have a planning discussion with you about where the business is now, and where you want it to go in the future. This sets some financial targets and allows the accountant to get a clearer picture of what they need to do on their end to help you grow your business and stay a client.
Accountant for tradies in New South Wales
As a busy tradie, it can be stressful enough keeping on top of the day to day operations in your business without the added stress of doing paperwork and record-keeping.
LeVeon is here to take on the extra load of bookkeeping, preparing accounts and filing tax returns, so you can use your extra time to continue providing a quality service to your customers and earning a good living for yourself.
Our tradie accountants in New South Wales can provide you with expert tax assistance and services. Our team are experienced in many different areas of accounting, from bookkeeping and tax planning to asset protection and corporate structuring
You can call our team on 0488 008 259, or alternatively email [email protected] and we will be in touch with you shortly.