How to take over the accounts from a previous accountant without errors

Changing accountants is a common situation, but if it is not done properly, it can lead to errors and unnecessary complications. A well-prepared handover of the accounts protects you from having to track down documents later and from discrepancies with the authorities.

Why the handover matters

Accounting is an interconnected whole in which the individual periods follow directly on from one another. The closing balances of one year are the opening balances of the next, so an error at the start carries through all the books.

If the new accountant takes over incomplete records, differences can arise in account balances, receivables or payables that are very difficult to uncover. A thorough handover therefore saves time and money on both sides.

Which documents to request

The basis is complete documentation for both the current and the closed periods. Without it, it is impossible to verify that the opening balances are correct or to build on the previous work.

• the general ledger and the accounting journal
• the latest financial statements and tax returns
• VAT records and VAT control statements
• asset cards and depreciation plans
• the receivables and payables ledger
• payroll records and HR documents

Checking that the balances carry over

A key step is to verify that the closing balances of the previous period match the opening balances of the new period. Check the balances on the bank accounts and in the cash desk, the unpaid invoices and the state of the assets.

If any figures do not match, deal with it right at the start, while the original accountant is still available. Later on, tracing the causes tends to be much more difficult and costly.

Handover in electronic form

If the accounts are kept in software, agree on a data export or access to the database. When switching to a different program, check that open items and the document history can be transferred.

If a complete transfer is not possible, at least agree on how the old data will be archived, so that you have it available in the event of an inspection, even years later.

Dealing with responsibility

It is advisable to draw up a handover protocol listing the documents taken over and the date of the handover. Clearly define until when the original accountant was responsible and from when the new one takes over the bookkeeping.

• a protocol on the handover and acceptance of documents
• a division of responsibility by period
• access to the portals of the Financial Administration (Finančná správa) and the insurance institutions

A handover dealt with in this way prevents disputes in the event of an inspection and gives both parties certainty about exactly where their responsibility ends and begins.

Verifying that the accounts taken over are correct

Taking over the records is only the first step. The new accountant should then go through the key areas and verify that the previous accounts do not contain errors that could affect taxes or the financial reports.

It is advisable to check in particular the VAT records, the correctness of asset depreciation and the state of receivables and payables. Any discrepancies uncovered are best dealt with straight away, while their origin can still be traced.

• checking the VAT claimed and the VAT control statements
• verifying the depreciation plans and asset cards
• comparing balances with bank statements

Communication and handing over access

Do not forget the practical side of the transition, namely handing over access to the portals of the Financial Administration and the insurance institutions, and to the accounting software. Without them, the new accountant cannot fully take over the bookkeeping.

It is also advisable to inform the authorities of the change of contact person, if they have one on record. Smooth communication during the first few weeks significantly reduces the risk of misunderstandings.

Related articles: Closing the accounting year: a complete checklist for entrepreneurs, Single-entry vs. double-entry bookkeeping: what is the difference and which to choose, Stocktaking and warehouse stock: a practical guide.

Frequently asked questions

When is the best time to change accountants?

The ideal time to switch is at the start of a new accounting period, when the previous period has been closed and the tax return filed. This reduces the risk of balances not carrying over and makes the division of responsibility between the accountants clearer.

What if the previous accountant refuses to hand over the records?

The documents are the property of the business owner, so you are entitled to them. Request them in writing and set a reasonable deadline. If cooperation breaks down, resolve it through the contractual terms or, if necessary, with legal assistance.