In 2026, many Australian business owners stay with the "family accountant" for years, even if that firm is too slow, too expensive, or still using paper-based systems. If your business has outgrown its current tax agent, it's time for a change. But how do you "break up" professionally without causing a tax nightmare? Here is our 2026 guide to switching accountants.
Before you talk to your old accountant, finalize your agreement with your new firm. They will send you an **Engagement Letter** and perform an identification check (KYC). Once you’ve signed, they will take over the driver's seat.
This is the most misunderstood part of the process. In 2026, professional bodies (like CA or CPA Australia) require the new accountant to send an **Ethical Clearance** letter to the old accountant. This letter asks: *"Is there any professional reason why we should not take on this client?"* This is also when your new firm requests copies of your previous tax returns, financial statements, and depreciation schedules.
If you're using Xero or MYOB, this part is incredibly simple. You just log into your software, go to the "Settings" and add your new accountant's email as an **Adviser.** You can then remove your old accountant’s access once the "Ethical Clearance" process is finalized.
Your new accountant will log into the **ATO Tax Agent Portal** and "link" your ABN and TFN to their firm. This informs the government that they are now your official representative for BAS and income tax purposes.
💡 Pro Tip: Ensure you have paid all outstanding fees to your old accountant. A firm can legally exercise a "lien" on your books (holding onto your paper records) if you have unpaid invoices, though they generally cannot block your cloud software access.
Moving to a modern, cloud-first accounting firm (like PrepMyBook) gives you the data you need to scale your business in 2026. Don't let loyalty to a slow firm hold your business back. At PrepMyBook, we handle the entire migration process for our clients, ensuring a smooth hand-off every single time. Let's make 2026 your most efficient year yet.
Our onboarding specialists can help you transition your records seamlessly from your current firm to our cloud-first service. Let's modernize your accounting.
Talk to an Onboarding Specialist