Choosing an accounting firm is like choosing a "partner." If you get along well, work easily together, and communicate effectively, the relationship can last a long time. However, if you encounter an accounting firm that isn’t a good fit, and you just can’t click while working together, what should the business owner do? Let’s explore this together.

Why do business owners want to change their accounting firm?

1. The previous firm is too small as the business grows.

As a company grows, so do its transactions. The previous accounting firm might not have enough resources or services to support the business expansion. Therefore, business owners may need to say goodbye and find a more capable firm.

2. Difficulty in working together.

Sometimes, businesses have their own systems for issuing documents or managing work processes. If the accounting firm cannot integrate or use systems that are compatible with the business, such as when a company works entirely online but the firm still works offline, this may lead the business owner to seek a firm that can collaborate more easily.

3. Looking for a more affordable accounting firm.

Accounting fees are part of a business’s expenses. If the business feels the monthly fees for the accounting firm are too high or the company isn’t generating enough income to cover this cost, the business owner might decide to switch to a more cost-effective firm.

4. Lack of support and advice.

Some business owners are willing to pay a premium for useful advice from their accounting firm. However, if the firm isn’t providing guidance or is often unavailable for consultation, the owner is likely to look for a firm that is ready to provide more support.

These are just some of the reasons many business owners decide to change accounting firms. Regardless of the reason for the change, what should we know in the process? Let’s take a look.

Documents to Request from the Previous Accounting Firm

When deciding to part ways with your previous accounting firm, it’s crucial to request all necessary documents related to the business. These are the essential documents to obtain:

The longer you’ve worked with your previous accounting firm, the more data you’ll need to retrieve. You'll need to ask for everything from the day you first started working with them to the day you mutually agree to part ways (especially if the firm has never returned the data). So, be prepared that the process of requesting documents back could take the longest time if the firm is not ready to cooperate.

In addition to receiving all accounting, tax, and original documents, another crucial step is to change all passwords to systems previously shared with the accounting firm. These include:

• Tax filing systems with the Revenue Department
• Financial statement filing systems with the Department of Business Development
• Social security filing systems
• Company accounting systems (if used collaboratively online)

This is important to prevent the previous accounting firm from accessing your business data after the termination.

Choosing the Right Accounting Firm for Your Business

If you’ve learned from past experiences that working with a certain type of firm doesn’t work, here’s some advice: if you have the chance to start fresh, don’t begin with the wrong fit.

For example:

If you previously changed accounting firms because the old one was slow and never delivered information on time (even if the price was right), now’s the time to look for a firm that works online or using the system that can integrate with your business systems. Set this as a must-have condition for the new firm to meet.

If you still focus solely on price without considering the workflow, the same issues will likely occur again with the new firm. The relationship will repeat the past mistakes, and the problems won’t be solved.

How Can Online Accounting Firms Improve Your Work?

By working with an online accounting firm, processes can become faster and more synchronized. The benefits of working online with an accounting firm include:

If you’re interested in trying FlowAccount, an online accounting system that integrates smoothly with accounting firms, you can find more details here.

Remember, “every breakup is painful,” but if you don’t want the pain to feel like an ICU visit, it’s essential to prepare in advance. Be sure to request all your business documents before starting fresh with a new accounting firm that truly understands your business and is ready to collaborate effectively.