Changing Your Accountant – A Safe and Supportive Process

Why Change Your Accountant?

Changing your accountant is a significant step in the financial life of a self-employed individual, business owner, or company. Whether you are seeking better service, a more personal relationship, or a more modern digital solution – the change should be planned and careful. Many change their accountant due to lack of responsiveness, lack of expertise in their business field, or because their previous accountant did not update them on tax benefits or deductions they are entitled to.

At Ben Or Kook, we understand that such a decision requires trust and clarity. We specialize in supporting self-employed individuals, business owners, and companies in Petach Tikva and Ramat Gan, and the transition process to us is an integral part of our service.

Changing Between Accountants – Is It Difficult?

No. In the past, the process of transferring files and documents was complicated. Today, with the digitalization of the tax authority and bank accounts, everything is much simpler. However, there are important steps to take to avoid tax errors, loss of reports, or delays in filing annual reports.

Steps for Changing an Accountant – Complete Process

1. Decision and Review of Your Current Situation

Before you meet a new accountant, it is important to check your current financial and tax status. Request from your previous accountant a copy of:

• Tax advance payment report for the last tax year (if you are a exempt business or licensed business)
• Approved annual report (if you are a company or licensed business)
• Periodic VAT reports (if you are liable for VAT)
• payroll documents (if you have employees)
• Capital declaration (if applicable)
• All correspondence with the tax authorities

2. Selection of a New Accountant

When looking for a new accountant, make sure he has experience in your business field. If you work in e-commerce, startups, new immigration to Israel, or international taxation – it is important that the accountant has expertise in these areas. Ben Or Kook specializes in all of these categories and offers a free initial consultation so you can get to know us and inform yourself before making a commitment.

3. Transfer of Documents and Data

This is the most technical stage. Your new accountant will need:

• Copies of all notices from the tax authorities from recent years
• Bank statements and transaction files (nowadays many firms use cloud folders like Google Drive or Dropbox)
• Saved invoices and receipts
• Record of expenses and income (if you maintain them yourself)
• Employee details and deductions (if relevant)

All of this can be done digitally and does not require physical documents in our time.

4. Coordination with the Tax Authorities

You don't always need to notify the tax authorities about changing accountants, but in some cases it is recommended or required:

• If you are a limited company – you must file a notice of change of accountant with the tax authorities
• If you are a licensed business and there is a change in details – you must update the authorities
• If there was a tax investigation or any issue with your previous accountant – it is important that your new accountant is informed

Your new accountant will ensure that everything is properly documented.

5. Conclusion of Coordination with Your Previous Accountant

This is not a legal requirement, but it is highly recommended: send a formal letter to your previous accountant notifying him of the termination of the agreement. This protects you legally and clarifies to all parties exactly when the transition date is.

Common Mistakes When Changing Accountants

1. Failure to Transfer Important Documents

The most common mistake is when a business owner or company fails to transfer important documents from the previous accountant. This can lead to non-reporting, extended tax returns, or even penalties. Always request from your previous accountant all reports, notices from the tax authority, and bank statements from previous years.

2. Failure to Coordinate with the Tax Authority

Particularly for private companies, you must notify the tax authority of the change of accountant. If you do not do this, the authority may send notices to your previous accountant, which will cause confusion and delays.

3. Failure to Check Previous Tax Status

If your previous accountant did not file reports properly, or if you have outstanding income tax or VAT debt – it will not disappear. Your new accountant will need to deal with it. Always check your status before making a change.

4. Choosing an Accountant Without Experience in Your Field

Not every accountant is an expert in every field. If you work in a specialized field – make sure your new accountant has experience in it.

5. Failure to Document the Transfer Date

Always send a formal letter to your previous accountant indicating the date of termination of the agreement. This is important for both parties and protects against legal liability.

Your Rights When Changing Accountants

According to the Accountants Law in Israel, you have rights in making a change:

• Right to receive copies of all documents: The previous accountant must transfer to you (or to your new accountant) all files, reports and correspondence.
• Right to receive explanations: If there is any issue with the accounts or reporting, the previous accountant must explain it.
• Right to a written opinion: You can request from your new accountant a written opinion on the status of your accounts.
• Right to privacy: All your information is protected under the Privacy Protection Law. An accountant cannot share it with third parties without your consent.

Different Scenarios for Changing Your Accountant

Scenario 1: You Are an Exempt Business Owner

If you are an exempt business owner (annual income up to approximately 305,000 NIS, subject to tax authority updates), the transition is relatively straightforward. You are not required to file VAT reports, and your annual report is simpler. However, it is important that your new accountant is aware of all your advance tax payments and updates you if you are entitled to a tax refund.

Scenario 2: You Are a Licensed Business Owner

As a licensed business owner, you are required to file periodic VAT reports and an annual report. The transition requires more coordination: you need to transfer previous VAT reports, coordinate with the tax authority regarding the reporting transition, and ensure there are no delays or holdups in filing your annual report.

Scenario 3: You Own a Private Limited Company

This is the most complex scenario. A private limited company must notify the tax authority of the accountant change. Additionally, you need to transfer approved financial statements, securities, notices of previous tax audits, and all other company-related information. Ben Or Kook specializes in assisting companies, and we handle this process with maximum care.

Scenario 4: You Are a New Immigrant or Foreign Resident

If you are a new immigrant or foreign resident paying taxes in Israel, there are additional steps: reporting foreign assets (FBAR if applicable), foreign reports, and ensuring you are paying tax on worldwide income. This requires an accountant with experience in international taxation. Ben Or Kook has extensive experience in this field.

Scenario 5: You Have Employees

If you have employees, the transition requires coordination of payroll slips, deductions, national insurance, and study funds. Your new accountant must be updated on all these obligations to avoid errors in the future.

How Much Does It Cost to Change an Accountant?

This is a common question. Generally, switching accountants itself does not require an additional fee – it is part of the standard service provided by a new accountant. However, if there are prior tax issues that need to be corrected (such as unfiled reports or tax debt), this may require additional work and fees.

Ben Or Kook offers a free initial consultation. In this meeting, we review your situation, understand your needs, and provide you with a clear estimate of our service costs.

Factors Affecting Cost:

• Type of Business: A tax-exempt business owner is less expensive than a licensed business owner or a corporation
• Complexity: If there are prior tax issues, this requires more work
• Scope of Operations: A large company or complex business requires more time
• Additional Services: Tax planning, filing tax applications, representation in audits – all require additional fees

Why Choose Ben Or Kook for the Transition Process?

Ben Or Kook Certified Public Accountants serve entrepreneurs, self-employed professionals, and companies in Petah Tikva and Ramat Gan since 2008. We specialize in bookkeeping, annual reports, tax planning, payroll management, and international tax planning.

When you choose us for the transition process, you receive:

• Years of Experience: We have handled dozens of transitions for self-employed professionals and companies, and we know exactly what needs to be done to ensure everything runs smoothly.
• Personal Service: You are not just a number. Every client receives dedicated personal support and availability.
• Digital and Modern: We use cutting-edge technology to make the process fast and easy.
• Complimentary Initial Consultation: You can get to know us, ask questions, and decide if we are the right fit for you – with no financial commitment.
• Expertise in Various Fields: Whether you are an exempt business, licensed business, a company, a startup, e-commerce business, or a new immigrant – we have experience in your field.