Unhappy with how reachable your current bookkeeper is, surprised by a price increase, or simply ready for a firm that fits better with how your business has grown? Many entrepreneurs put off switching for a long time, afraid it will be complicated or that something will go wrong with their administration. In practice, switching to a different bookkeeper is usually a straightforward process, provided you approach it in a structured way.
Short answer
You can generally switch to a different bookkeeper at any time, although switching around the turn of the year or after a financial year has been completed is often the most convenient. Three steps matter: correctly terminating your current contract, having your administrative file transferred, and making sure your new bookkeeper gets timely access to the necessary systems and data. With a bit of planning, no return needs to be missed and the transition usually runs without problems.
Why do entrepreneurs switch?
There are various reasons for looking for a different bookkeeper. Some entrepreneurs have grown and need a firm that also advises on, for example, a BV structure or investments, while their current bookkeeper limits itself to basic bookkeeping. Others run into poor availability, notice that returns are filed too late, or deal with changing points of contact, meaning they have to explain how the business works all over again each time. A price that is no longer in proportion to the service delivered, or simply the wish to switch to a firm that works with modern accounting software, are also commonly heard reasons.
Step 1: terminating your current agreement
First check your contract or your current bookkeeper's general terms and conditions for the notice period. Many administration firms apply a notice period of one month, sometimes running up to three months for longer subscriptions. Give notice in writing, for example by email, so that you have confirmation of the date on which the collaboration ends. In your termination, also state that you want the file transferred to your new bookkeeper, so that this is immediately on record.
A good bookkeeper will, in principle, simply cooperate with a switch. Should a dispute unexpectedly arise, for example over an outstanding invoice, that can sometimes delay the transfer. Try to resolve that kind of issue in advance as much as possible, so the transfer does not get stuck on an unpaid bill.
Step 2: having the file transferred
Your current bookkeeper usually has a complete file on your business: the administration of recent years, previously filed returns, the latest annual accounts, any correspondence with the Tax Authority and, for a BV, the articles of association and shareholder resolutions. Explicitly request that this file be transferred to your new bookkeeper. This can be done digitally, for example via an export from the accounting package, or as separate files.
Important items to have transferred in any case:
- The full bookkeeping of the current financial year up to the switch date
- The annual accounts and returns of recent years
- Outstanding items: accounts receivable, accounts payable and any payment arrangements
- Payroll administration, if you have staff employed
- Correspondence with the Tax Authority, for example about an ongoing audit or deferral of payment
- Access to, or an export of, the accounting package used
Are you taking the accounting package itself to the new bookkeeper, or are you switching packages too? Both happen. If your new bookkeeper works with a different package, a clean export of the existing administration is usually enough to get up and running quickly.
Step 3: contact between old and new bookkeeper
In practice, a switch goes most smoothly when the new bookkeeper contacts the old bookkeeper directly for the handover. That way you don't have to act as the go-between for all the technical details yourself, and the new bookkeeper can ask targeted questions about, for example, the accounting principles used or outstanding matters. Give your old bookkeeper written permission for this, so they know they are allowed to share data.
Also ask your new bookkeeper to do a brief check of the administration provided before the switch is finalised. That way, any backlog or incomplete file comes to light early, rather than only at the next return.
What is the best time to switch?
There is no moment at which switching is impossible, but some moments are more practical than others. Switching around the turn of the year, just before the start of a new financial year, is the most straightforward for most entrepreneurs: the current financial year is still wrapped up by the old bookkeeper, and the new financial year starts entirely with the new bookkeeper. That way nobody has to step into an administration halfway through a financial year that was set up by someone else.
That doesn't mean you have to wait until January if you are already unhappy now. Many bookkeepers simply take over an ongoing financial year, for example as of 1 July, and update the first half of the year based on the figures supplied by the previous bookkeeper. Only with a complex administration, for example with multiple BVs or an ongoing tax audit, is it sometimes wiser to first finish a quarter or the financial year before switching.
Do keep an eye on the deadlines for your returns. If a VAT return is due in two weeks, it is practical to still have the current bookkeeper file it, so that no deadline falls between the cracks during the handover.
Case study
The owner of a small installation company, set up as a BV, had for some time been unhappy with his bookkeeper's slow response times. Invoices for the annual accounts sometimes only arrived months after the end of the financial year, which meant he only got a late picture of his results. In October he decided to look for a new bookkeeper, gave written notice on his contract with a one-month notice period, and agreed with his new bookkeeper that the handover would take place after the current VAT return was finalised. As of 1 January the new bookkeeper started fully, with a complete file of previous years, and within a few weeks he already had a first interim report. Because the switch took place around the turn of the year, no administration had to be taken over halfway through a financial year.
What should you do yourself to make the switch go smoothly?
Start giving notice in good time, so you don't get stuck on a long notice period. Explicitly ask for the full file to be transferred, not just the figures for the current year. Give your old and new bookkeeper permission to liaise directly with each other, and keep an eye yourself on the upcoming return deadlines, so you know who is still handling which return during the transition period. Also always keep your own copies of important documents, such as earlier annual accounts and returns, so you are never completely dependent on the transfer by a third party.
Frequently asked questions about switching bookkeepers
Do I have to give my current bookkeeper a reason for switching?
No, that is not required. A written termination observing the notice period is sufficient. Some entrepreneurs do briefly give a reason, for example because it keeps the handover on good terms, but it is not necessary.
Can my old bookkeeper refuse to transfer my file?
Your administration is your property, so in principle no. In the case of an outstanding invoice, a bookkeeper can sometimes invoke a right of retention, delaying the transfer until the bill has been paid. So make sure any outstanding payments are settled before finalising the switch.
Do I owe my old bookkeeper anything if I switch?
Only for work that has actually been carried out and not yet paid for, and for the remaining notice period if that has been contractually agreed. Switching itself is not a reason for an extra fee, unless that is explicitly stated in your contract.
What if my financial year has not yet been completed at the time of switching?
That is not a problem, but it does require a bit more coordination. The new bookkeeper then needs the figures up to the switch date, plus a clear picture of which returns have already been filed and which still need to follow.
How long does a switch usually take?
This differs per situation, but count on a few weeks between the termination and the moment the new bookkeeper is fully operational. With a simple sole-trader administration this can be quicker; with a more extensive BV administration with staff it can take a bit longer.
Considering a switch? Read more about our bookkeeping for freelancers and our services for BVs, including guidance through a handover.
