Switching Bookkeepers Mid-Year: What to Hand Over, and How to Avoid Gaps
Companies change bookkeeper for all sorts of reasons: the books are always late, questions go unanswered, the fees went up, or the business has simply outgrown a once-a-year write-up. You don't have to wait for the year end to switch. A mid-year handover works well, if the line between the old bookkeeper's work and the new one's is drawn clearly.
1. Pick the handover date
- Use a month end. The old bookkeeper completes the books up to that date; the new one starts the day after.
- Choose a month whose statements are already in for every bank and payment account, so the old books can be finished and reconciled.
- Avoid the weeks before a deadline, such as the profits tax return or the audit fieldwork, if you can. If you can't, agree who finishes what.
2. What to get from the old bookkeeper
Ask in writing, with the handover date, for:
- The trial balance at the handover date, and the general ledger for the year to that date, in Excel or another format you can open.
- Bank reconciliations for every account at that date, with any unmatched items listed.
- Lists behind the balances: unpaid customer invoices, unpaid supplier bills, the fixed asset register, prepayments and accruals, and the director's current account.
- Last year's signed financial statements and tax computation, and any open questions from the auditor or the IRD.
- The source documents they hold: invoices, receipts, contracts. You must keep business records for at least seven years (Inland Revenue Ordinance, section 51C), so make sure nothing stays behind.
- Payroll and MPF records, if they ran payroll.
- Open items: questions they were waiting on you for, and anything booked to suspense.
3. Opening balances in the new books
The new books start from the trial balance at the handover date. Every account carries its balance across, and the year's income and costs so far are either carried as totals or imported in detail, depending on what the old system can export. The bank accounts are reconciled again from the new side, so both bookkeepers agree on the same starting point.
4. Bank history and documents
- Bank statements from the handover date onwards, or a feed where your bank offers one (see bookkeeping with a bank that has no feed and the HSBC daily feed).
- Receipts and invoices from the handover date go to the new bookkeeper; anything earlier goes to the old one to finish.
5. Deadlines and other roles
- List the deadlines in the next twelve months and agree who owns each: the profits tax return, the employer's return, the audit (see profits tax return deadlines).
- Check who else the old firm was. A bookkeeping firm is often also the company secretary or the tax representative, and each of those roles needs its own handover. If the tax representative changes, make sure the IRD and your new adviser know.
- Tell your auditor who now keeps the books.
6. Access and logins
- Revoke the old bookkeeper's access to your bank's online banking, payment platforms and shared drives once the handover is complete.
- Grant the new bookkeeper read-only access where you can; they rarely need to make payments.
- Download your data from the old system before the subscription ends.
7. The first month
The first month with the new bookkeeper is the test. Every bank account reconciled to the statement, the opening balances confirmed, and the open questions answered. After that, a well-run switch is invisible: the books simply arrive on time.
How Certanta handles a switch
- Opening balances from the handover date, checked against your bank statements before we start.
- Bank history brought in from statements or a daily feed where available.
- Your deadlines in the portal from day one, with each one owned.
- A to-do list for the gaps: missing receipts and open questions, in one place.
- Published pricing, so you know the fee before you switch (see pricing and ten questions to ask a bookkeeper).
Frequently asked questions
Can I change bookkeeper in the middle of the financial year?
Yes. Pick a month end as the handover date, have the old bookkeeper complete and reconcile the books to that date, and start the new books from the trial balance at that date.
What should I get from my old bookkeeper?
The trial balance and general ledger at the handover date, bank reconciliations, lists of unpaid invoices and bills, the fixed asset register, prepayments and accruals, the director's current account, last year's financial statements and tax computation, the source documents, payroll records, and any open questions.
Who keeps the records when I change bookkeeper?
The company does. Business records must be kept for at least seven years under section 51C of the Inland Revenue Ordinance, so make sure all invoices, receipts and other documents come back to you or to the new bookkeeper.
What are opening balances?
The balance on every account at the handover date, taken from the trial balance. The new books start from them, so they need to be checked against bank statements and the lists behind receivables and payables.
Does my tax representative change when I change bookkeeper?
Only if the old firm was your tax representative and you move that role too. Each role, bookkeeper, tax representative and company secretary, is handed over separately.
How long does a switch take?
The handover itself usually takes a few weeks, mostly waiting for the old bookkeeper to finish and send the records. The first full month with the new bookkeeper confirms everything is in place.
Switching to Certanta?
We start from your balances at the handover date, bring in the bank history, and reconcile the first month before anything else. Open the demo to see what you'd get.
Open the demo See pricingThis article is general information for Hong Kong companies changing bookkeeper, not legal, tax or accounting advice. If your old firm is also your company secretary, tax representative or auditor, each role is handed over separately.