How to Change Your Accountant Correctly and Safely

Why Do Business Owners Switch Accountants?

The decision to switch accountants is not uncommon. Whether you are concerned about service quality, seeking more transparent pricing, requiring specialization in a specific field (such as e-commerce, startups, or international taxation), or simply feel that there is a lack of personal chemistry — your right to switch accountants is entirely yours.

Self-employed individuals, exempt business owners, licensed business owners, company and association directors, and anyone in a business relationship with an accountant can take this step at any time. However, to avoid tax complications, delays in annual reports, or issues with the tax authority, it is important to follow the correct procedure.

Your Rights as a Client

As an employer or business owner, you have the exclusive right to choose the professional managing your accounts. There is no need to provide an explanation or answer to your previous accountant. Even if there is outstanding debt or payment delays, switching accountants will not be affected — the tax authority will contact you directly regarding financial matters.

Additionally, you are entitled to receive all your documents, reports, payslips, and files within a reasonable timeframe (typically up to 30 days). Your former accountant is required to cooperate in transferring the data.

The Most Common Scenario

Often, business owners find that they are dividing their accounting management among several service providers: one accountant for bookkeeping, another for tax planning, and a third for payroll. This can lead to misalignment, duplicate costs, and lack of oversight. At Ben Or Kook Firm, we offer personalized and focused guidance in your field — whether you are an exempt business owner, a company, a startup, or involved in an international business venture.

Practical Steps: How Exactly Do You Change an Accountant?

Changing an accountant does not involve complicated bureaucracy, but it does require order and advance planning. Below is the complete process:

Step 1: Choose a new accountant before notifying the old one

First, check the new accountant: Does he specialize in your field? Does he offer digital support? What is the service pricing? Ben Or Cook offers a free initial consultation, so you can familiarize yourself with our approach and offer without obligation.

Step 2: Notify the old accountant in writing

Send a formal letter (email with read receipt or registered mail) to the old accountant, informing him of the termination of the relationship. It is recommended to allow a reasonable timeframe (typically 14–30 days) to give him an opportunity to complete pending work. In the letter, also request complete transfer of all documents and files within this period.

Step 3: Transfer all documentation

The old accountant must close all files in the month the relationship ends. Ensure you have received:

• Annual reports from all years you were with him
• Income tax returns filed
• Payroll slips and deductions (if applicable)
• Periodic VAT reports
• Raw accounting files (if they exist)
• Documents related to relocation, international taxation, or pension (if applicable)
• Any other document related to accounting procedures

Step 4: Notify the Tax Authority

Usually, the new accountant will verify your information in the Tax Authority system and update regarding the change of representative. You can also notify the Tax Authority directly through the self-service portal (if you have access) or through the new accountant. This notification is not particularly formal — it is typically a routine update of authorized representative details.

Step 5: Update all relevant parties

In addition to the Tax Authority, you should update:

• The National Insurance Institute (if you are a self-employed person or a company with employees)
• Bank of Israel / your bank (if the accountant was authorized for banking transactions)
• Insurance and pension institutions (if it is a company)
• Local authorities (municipality / council, if applicable)

Step 6: Check the new connection

In the first stage of working with the new accountant, verify that he is aware of all your information: income scope, expense structure, VAT deadlines, payroll, annual reports, etc. This is the time to clarify any questions and ensure there are no gaps in documentation.

Common Mistakes When Changing Accountants — How to Avoid Them

When changing accountants, there are several pitfalls you need to avoid:

Mistake 1: Failing to Document the Transition in Writing

If you only notify your previous accountant by phone or brief conversation, there may be misunderstandings about when exactly the relationship ends. Always send a formal written notice (email or registered mail) with a clear termination date.

Mistake 2: Not Checking Documents Before You Leave

Do not rush to leave your previous accountant without receiving all your files. Verify that your annual reports are in order, that all reports to the Tax Authority have been filed, and that there are no outstanding debts or delays.

Mistake 3: Failing to Notify the Tax Authority

If you do not inform the Tax Authority about the change of representative, reports or notices may be submitted in the name of your previous accountant, causing confusion. Your new accountant can guide this process, but this is something that should be confirmed.

Mistake 4: Not Vetting Your New Accountant Beforehand

Do not choose a new accountant simply because they are cheaper or because a friend recommended them. Check their background, their expertise in your field, and the tone of their service. Ben Or Kook offers a free initial consultation — this is the time to ask questions and learn about our approach.

Mistake 5: Not Notifying Other Relevant Parties

If you have employees, the National Insurance Institute needs to know about your new accountant. If you have a bank account that requires accountant approval, the bank needs to be informed of the change. This may seem like a minor detail, but it can become a major problem if you do not update it in time.

Comparison: What Your New CPA Should Know

When you transition to a new CPA, it is important that they receive a complete picture of your financial situation. Below are the essential data points:

This is not an exhaustive list, but it covers the main points. When you submit this data to your new CPA, they can plan their guidance of you efficiently and properly.

Why Choose a New Accountant — What Should Matter to You?

When selecting a new accountant, don't focus solely on price. The following points are equally important:

1. Specialization in Your Field

If you are a tax-exempt business owner in a specific field (such as technology, healthcare, or construction), choose an accountant with experience in that sector. If you own a startup or e-commerce business, select an accountant familiar with the specific procedures of your industry. Ben Or Kook specializes in freelancers, business owners, companies, startups, e-commerce, as well as immigrants requiring international taxation services.

2. Digital Service and Availability

In today's era, digital service is essential. Check whether the accountant offers digital access to reports, payslips, and files. Also verify their response time — are they available for questions? Ben Or Kook provides comprehensive digital service and high availability.

3. Transparent Pricing

Don't choose an accountant unwilling to explain their pricing structure. Verify whether they charge hourly, per project, or monthly. Also check if there are additional costs or surcharges. Ben Or Kook offers transparent pricing and clear budgeting in advance.

4. Personal Accompaniment

You need to feel that you have a dedicated person managing your accounts, not just an automated system. Ben Or Kook provides each client with personal and dedicated attention.

5. Knowledge of Current Tax Requirements

Tax requirements change over time. Verify whether the accountant keeps up with legal changes, tax rates, and reporting requirements. Ben Or Kook stays current on these matters at all times.