How to Switch Accountants (and When You Should)

EverStone CPA
Jun 25
3 min read

Switching accountants is normal, straightforward, and — when the time is right — one of the better decisions a business owner can make. The process involves signing an engagement letter with your new firm, authorizing them with CRA, and requesting your records from your previous accountant. Most transitions are completed without disruption to your business or your filings.

Signs it may be time to consider a change

1. You cannot get a timely response

Your accountant does not need to answer in minutes, but unanswered calls or emails over several days — especially outside peak periods — is a real problem.

2. You are always reactive, never proactive

An accountant who only contacts you at year-end is providing compliance, not advice. Tax planning for incorporated owners in the Fraser Valley benefits from conversations throughout the year, not after it.

3. Surprises at year-end

If you regularly receive an unexpected tax bill that no one flagged earlier, that is a planning failure. Good tax work anticipates, not just reports.

4. You do not understand what you are signing

Your accountant should explain your T2 return, financial statements, and any elections in plain language. If you have stopped asking because you expect no useful answer, that is a sign.

5. You have grown and your accountant has not grown with you

A good fit for a sole proprietor doing $80,000 may not be the right fit for an incorporated company doing $600,000 with employees and succession questions ahead.

Switching is normal and professional

Professional standards govern how transitions are handled. Your previous accountant is required to release your records. There is no penalty for switching, and the vast majority of transitions are handled without friction. A brief, courteous notice is sufficient.

The handover process, step by step

Step 1 — Choose your new accountant first

Complete your due diligence and sign an engagement letter before notifying your current accountant, so there is no gap in service.

Step 2 — Authorize your new accountant with CRA

Your new accountant will ask you to authorize them through CRA's Represent a Client system, which lets them access your accounts and communicate with CRA on your behalf. This replaces the previous authorization.

Step 3 — Request your records

Your past returns, financial statements, and original source documents belong to you. Your previous accountant may keep their own working papers but must return your records. Your new accountant typically handles this firm to firm.

Step 4 — Brief your new accountant

A good onboarding meeting covers your structure, recent history, open CRA matters, and your goals.

The best time to switch

The cleanest time is after your most recent year-end filing is complete. If your situation is urgent — an unresolved CRA matter or an overdue filing — do not wait; address it first.

What to expect from a good relationship

Responsive communication within one to two business days on routine matters
A year-end planning meeting before your year-end closes
A clear explanation of your returns before you sign
Proactive flags when CRA rules change
An annual review of salary, dividends, and compensation
Transparent, predictable fees

Frequently asked questions

Will switching accountants trigger a CRA audit?

No. CRA does not audit businesses because they changed firms. This is a common but unfounded concern.

What if my previous accountant still has unfiled returns for me?

Address this explicitly during the transition. You will decide whether the previous accountant completes those filings or your new accountant does so from the available records.

Do I need to tell my old accountant why I am leaving?

No. A brief notice by email that you are transitioning to a new firm is sufficient.

EverStone CPA in Abbotsford works with incorporated business owners across the Fraser Valley who are ready for more responsive, proactive accounting. If you are considering a switch, book a no-obligation 30-minute conversation at everstonecpa.com.

Written by Sunny Dhillon, CPA · EverStone CPA, Abbotsford · Last updated: June 2026. General information, not advice for your specific situation. For CRA rules, see canada.ca.