“Can you change accountants during the year, and how does the transition work?”
The firm's answer
First understand the business and bookkeeping being transferred
“A transition can be considered during the year too. Before deciding when, we need to know whether this is a limited company, a VAT-registered dealer or a VAT-exempt dealer, which bookkeeping method is used and which software is involved.”
Changing accountants and transferring the bookkeeping system do not always have to happen on the same day. Define exactly what is moving: representation before authorities, ongoing work, payroll, bookkeeping or annual returns.
Limited company: our recommendation is careful planning
For a company using double-entry bookkeeping, a midyear move requires continuity of journal entries, ledgers, balances and reconciliations. When firms use different software, also check how data will be transferred and verified after import.
The firm's recommendation in a typical case: consider completing the bookkeeping year in the existing system and starting the following year in an organized way with the new firm. This is an operational recommendation, not a rule prohibiting a midyear move.
A midyear transition is possible when needed and supported by an appropriate transfer plan. Using the same software may help but does not guarantee an automatic transition; moving between different systems is also possible, subject to the ability to transfer and verify the data.
VAT-registered or VAT-exempt individual business: usually a simpler move
For an individual business actually using single-entry bookkeeping, the transition is generally simpler: gather documents and reports already submitted, agree a handover point and continue with the new firm.
An important distinction: “VAT-registered dealer” and “VAT-exempt dealer” are VAT classifications. The bookkeeping method is determined by bookkeeping rules and the activity, not solely by VAT status. Even a VAT-registered individual may be required to use double-entry bookkeeping, so the specific file must be reviewed.
The key is knowing who handles each period, what information has been transferred and what remains open, so no report is left without an owner and work is not duplicated.
How does an organized transition work?
- Map the business's position: legal structure, bookkeeping method, software, reports submitted and material not yet entered.
- Agree the date and responsibilities in writing: who handles the period before the move, who submits the next report and who prepares the annual return. Also settle the terms for ending the previous engagement.
- Gather and transfer material: income and expense documents, reports and confirmations, balances and equipment and payroll information as needed. Double-entry bookkeeping also requires a trial balance, ledgers, journal entries and reconciliations.
- Check the data: compare imported material with the system and previous reports, checking that the transition has not created omissions or duplicates.
- Update representation and permissions: arrange the new representative's power of attorney and digital permissions as needed, and confirm each firm's remaining responsibilities.
- Start with a clear list: agree missing material, upcoming tasks and deadlines, and retain relevant documents and backups.
What is the answer based on?
The recommendation on when to transfer bookkeeping is the firm's working approach and is considered case by case. Bookkeeping rules set recording requirements according to activity type and scale; they do not simply follow the “VAT-registered or exempt” distinction. Changing representation requires arranging a power of attorney and permissions with the Tax Authority.
This is general information. The transition date and material required depend on the file's position, service agreements and existing systems, and are determined after individual review.