When to Change Your Accountant?

You may already experience one of these points:

  • Dissatisfaction with the quality of service
  • Poor communication or delayed responses
  • The accountant cannot keep up with your business growth
  • Lack of tax optimization advice
  • Breakdown of trust in the relationship

Optimal Timing for Changing Your Accountant

Ideal time: The end of the year (November-December), when the current accountant finalizes the fiscal year, completes closing tax returns and reports. This allows the new accountant to start fresh from January.

Changing during the year: Also possible, but it is recommended to wait until the end of a reporting cycle (monthly, quarterly). In urgent cases, the previous accountant can prepare a mid-year closing before the handover.

Steps to Change Your Accountant

1. Preparation and Choosing a New Accountant

Before terminating the old accountant, find a new one. Important factors include:

  • Appropriate professional experience and references
  • Use of modern, online accounting systems
  • Transparent pricing
  • Positive client reviews

2. Terminate the Contract with the Old Accountant

  • Review your contract for termination conditions
  • Write a formal termination specifying reasons and notice period
  • Seek mutual agreement as it benefits both parties
  • Notice periods usually range from 1 to 3 months

3. Arrange Authorizations

Three key authorizations need to be handled for the change:

  • NAV (tax authoAuthorization (ÚJEGYKE): Via https://onya.nav.gov.hu client portal, client approves the accountant's request, processed usually within one hour.
  • Company Gateway Authorization: Performed by the client's company gateway representative, separate from NAV authorization. The new accountant must be assigned here.
  • Local Municipality Authorization: Via https://ohp-20.asp.lgov.hu/, must be done separately for each municipality. For Budapest headquarters, choose Budapest Municipality.

4. Handover of Documents

This is the most critical part of changing accountants. All documents must be handed over and received based on a written record.

Basic Documents:

  • Articles of association
  • Appendices to the founding documents
  • Court registration decisions
  • Signature specimen of the representative
  • Bank account agreements
  • Loan contracts
  • Organizational and operational rules
  • Accounting policies
  • Correspondence with NAV and local authorities

General Ledger and Analytical Documents:

  • Full and current general ledger extracts
  • Account cards for all invoices
  • Analytical records such as VAT, fixed assets, inventory, receivables/payables

Closed Year Documents:

  • Profit and loss statements
  • Balance sheets
  • Supplementary notes
  • Corporate tax returns
  • Local business tax returns
  • VAT returns

Payroll Documents:

  • Employment and commission contracts
  • Employee base data
  • Detailed payroll data (net/gross breakdown, contributions)
  • Vacation records
  • Health insurance declarations
  • Personal income tax and contribution returns

Accounting Documents:

  • All current year vouchers
  • Outgoing and incoming invoices
  • Bank statements
  • Cash vouchers
  • Inventory movement documents

Starting Cooperation with the New Accountant

Handover and Receipt

Request detailed records of document receipt from the new accountant. Experienced firms usually list required documents in the contract.

Review and Organize

The new accountant reviews the documents and supplements any missing data. In some cases, re-bookkeeping might be necessary.

Important Notes

Responsibility

  • The new accountant is only responsible for the work they perform
  • The old accountant remains responsible for previous periods unless the new accountant re-books those periods

Costs

  • The old accountant may charge for compiling documents
  • The new accountant may have additional fees for the handover and organization

Documentation

Carefully document every step to protect both parties and provide evidence in case of disputes.

Summary

Successful accountant switching requires thorough preparation, precise documentation, and constructive cooperation with both accountants. Managing authorizations, full document handover, and seamless contact with the new accountant ensure that the change does not disrupt your business operations.

With the right professional approach, changing accountants is not only possible but often necessary for business growth.

At Everest Accounting, you can be confident that your accountant change will be smooth and successful! Contact us now for a quote, and our Account Managers will assist you.