How to Switch Accountants Without Losing a Step

Signs it is time to switch

Owners usually switch for one of a few reasons: returns that are always filed on extension without a plan, tax bills that arrive as surprises, books that are never current, or a firm that does compliance but not the planning or CFO support a growing company needs. If you have outgrown your accountant, staying put has a cost too.

Pick the right moment

You can switch at any time, but some moments are cleaner than others. Right after a return is filed, the prior year is complete and the new CPA can start fresh on the current year. At a quarter end, payroll and sales tax filings have natural breakpoints. Switching in the middle of tax season is possible, but plan for extensions so the new firm is not rushed into filing from books it has not reviewed.

Records to gather or request

Most of what a new CPA needs is yours, and much of it you may already have. Ask your current accountant for anything you do not have copies of. A professional request is normal and your prior accountant does not need to do any additional work beyond providing the records.

• Federal and California tax returns for the last three years, with all schedules and K-1s
• Depreciation and amortization schedules, federal and California
• Basis and capital account records for partners and S corporation shareholders
• Access to the accounting file, or a backup, plus year-end adjusting entries
• Payroll provider access and prior Forms 941, 940, W-2 and California DE 9
• CDTFA sales tax account details and recent returns
• Copies of any open IRS, FTB, EDD or CDTFA notices
• Login details for tax portals, held by you rather than your old firm

Authorizations to sign

Your new CPA will ask you to sign authorizations so they can talk with tax agencies and see your account history. For the IRS that is usually Form 2848, a power of attorney, or Form 8821, a tax information authorization. California uses its own power of attorney declarations for individuals and businesses through the Franchise Tax Board. With these in place, your CPA can pull transcripts, confirm estimated payments and respond to notices directly.

Avoid gaps during the handoff

The riskiest part of a switch is the recurring filing that each firm thinks the other is handling. Build one list of every obligation, its due date and who now owns it.

• Quarterly federal and California estimated tax payments
• Payroll deposits and quarterly payroll returns
• Sales and use tax returns with the CDTFA
• Forms 1099-NEC and W-2 due in January
• City business license renewals
• California Statement of Information filings with the Secretary of State

What the first months look like

A good new CPA starts by reviewing, not filing. Expect a review of prior returns and the current books, a list of anything that needs to be corrected, and a plan for the rest of the year. At Scalesight that review is the free Growth Audit: we look at your statements, cash flow and current tax approach, then give you a written plan and, if we are a fit, a fixed scope in writing. From there we take over from the next open period.

This is general information, not tax or legal advice. Tax rules change and the right answer depends on your facts, so talk with a CPA before acting on it.