How to switch accountants without losing records or missing deadlines
A step-by-step guide to changing accountants or BAS agents in Australia, covering timing, ATO agent nomination, records, software access, final invoices and what can go wrong.
To switch accountants safely: choose the new firm and sign its engagement letter first, nominate the new agent through the ATO's online services (or let them add you as a client with your authorisation), ask the new firm to contact the old one for your records and prior-year information, move software access so the old firm no longer has it, and settle or dispute the final invoice in writing. Time the move away from a lodgement deadline if you can. The main risks are a missed BAS or return during the changeover and records that do not come across.
This guide is part of the checklist for choosing an accountant.
When to switch
The best times are:
- After a year's returns are lodged, so the new firm starts on a fresh year.
- Early in a BAS quarter, so the new firm has the full quarter to prepare.
- Not in the weeks before 30 June if you have trust distribution resolutions or tax planning that the old firm was handling, unless the new firm can take it on immediately.
If you are leaving because the old firm is late on lodgements, check with the new firm whether you are already overdue; waiting can make penalties worse.
Step by step
| Step | Who | What to do |
|---|---|---|
| 1 | You | Get quotes on a full scope; see choosing an accountant |
| 2 | You and new firm | Sign the engagement letter; see engagement letter scope |
| 3 | New firm | Complete identity checks it must make, including any AML/CTF requirements for regulated services |
| 4 | You or new firm | Nominate the new agent with the ATO for each entity and for your individual return |
| 5 | New firm | Write to the old firm requesting records, prior-year returns and relevant working information |
| 6 | You | Change software access: remove the old firm's users; add the new firm's |
| 7 | You | Download your own copies: prior returns, BAS, ATO correspondence |
| 8 | You and old firm | Settle the final invoice or raise any dispute in writing |
| 9 | New firm | Confirm upcoming lodgement dates in writing |
Nominating the new agent with the ATO
Businesses generally nominate a tax or BAS agent through Online services for business, using the business's digital identity (myID) and Relationship Authorisation Manager access. Once nominated, the agent can add the business to their client list. Individuals can nominate through their myGov account. Each entity needs its own nomination: the company, the trust, and each individual. Never give an accountant your myGov or myID login; they should be linked as your agent.
What records you are entitled to
Your business records, such as bank statements, invoices, receipts and your accounting software data, belong to you. Documents the firm prepared for you, such as lodged returns and financial statements, should also be provided to you or the new accountant. The old firm's own working papers may belong to the firm, although professional bodies generally expect members to cooperate with a transfer and provide information the new accountant reasonably needs.
If a firm refuses to release records because of an unpaid invoice, the position depends on which documents are involved and the general law. Do not let a fee dispute stop a lodgement: tell the new firm, who can often obtain prior-year return information from ATO systems. If the firm is a member of a professional body, contact that body; see the complaints guide.
Software: the step people forget
If the old firm owns the accounting software subscription, ask before you announce the switch how the file will be transferred. Options include transferring the subscription to your business or exporting a full archive. Without this, you may lose easy access to years of transactions that the ATO expects you to keep for five years. See record keeping requirements.
If you own the subscription, simply remove the old firm's user access and invite the new firm.
Costs of switching
Switching is rarely free:
| Cost | Who charges | Notes |
|---|---|---|
| Transfer or archive fee | Old firm | Ask for it in writing; may be negotiable |
| Onboarding and review | New firm | Reviewing prior-year files, setting up the client |
| First-year learning curve | New firm | First-year fees are often higher |
| Your time | You | Answering questions the old firm already knew |
Weigh these against the yearly saving. If the new firm is $1,200 a year cheaper but onboarding costs $800, you are ahead from year two. Use the fee estimator to compare.
Common problems and fixes
- The old firm does not respond. Have the new firm follow up in writing; if still nothing, use ATO prior-year data and contact the professional body.
- A BAS falls due mid-change. Agree in writing which firm lodges it.
- Duplicate billing. The old firm invoices for a job the new firm also did. Make the cut-off date clear in your termination email.
- Software history missing. Export before access is cut.
- Payroll mid-cycle. Make sure super contributions under Payday Super still go out on time during the change; see Payday Super mistakes.
Frequently asked questions
Do I need to tell my old accountant why I am leaving?
No. A short, polite email ending the engagement from a stated date, asking for the final invoice and confirming the new firm will request records, is enough.
Can I switch in the middle of a year?
Yes. Just agree which firm completes which lodgements and when the cut-off applies.
Will the ATO tell my old agent?
When the new agent is nominated, the old agent's authority for that client is generally replaced for the relevant accounts, but always tell the old firm directly too.
Does switching affect my lodgement due dates?
Your dates depend on the new agent's lodgement program and your history. Ask the new firm to confirm them.
Sources and where to check
- Australian Taxation Office — nominating a tax or BAS agent, Online services for business, Relationship Authorisation Manager
- Tax Practitioners Board — check the new agent's registration
- CPA Australia, Chartered Accountants ANZ, Institute of Public Accountants — professional body guidance and complaints
- myID — the government digital identity used to access business online services
