Changing Your Tax Adviser — Key Points to Consider!

Most business owners work with their tax advisory firm for many years — long-term cooperation is the norm in this sector. Nevertheless, no one should hesitate to change their tax adviser: there can be very good reasons for doing so!

With high-quality, tailored tax advice, you secure significant financial and business advantages. If your current tax firm, for example, is not making sufficient use of the potential for tax optimisation, switching to a more capable tax expert will save you a great deal of money in the long run.

Do you want to change your tax adviser for this reason or another? Or are you still weighing up whether a change is right for you? In either case, it is worth looking more closely at this topic. The good news — whether you have decided or are still deliberating — is that you can switch tax firms without any difficulty. There are no costs involved, and the effort required is manageable.

Nobody changes their tax advisory firm lightly. However, it would be detrimental from a business perspective to stay with a tax firm that fails to fully convince. But what does this mean in concrete terms? What reasons might make it advisable to look for a different tax adviser?

A good working relationship between a business owner and their tax adviser requires a foundation of mutual trust. Does your tax adviser miss an important submission deadline for a tax return? Or fail to lodge an objection against a tax assessment in time? In such cases, the relationship of trust is fundamentally undermined — change your tax advisory firm!

Further potential shortcomings can also tip the balance: some tax advisers, for example, miscalculate anticipated tax payments, and the actual amounts demanded turn out to be significantly higher. For the self-employed, this proves to be a source of frustration that can, in the worst case, create liquidity difficulties. This too is a compelling reason to change tax adviser.

Are you faced with an urgent problem but unable to reach anyone at your tax firm? Or is the earliest available appointment too far in the future? Do you always speak to different members of staff at the firm, none of whom can give you a well-founded answer? By switching your tax advisory firm, you are making the right decision!

Many tax advisers work as generalists. They cater equally to private individuals and business owners; in the business segment, they advise companies of any size and from any sector. The disadvantage is that the required degree of specialisation is usually lacking.

Other tax advisory firms, by contrast, focus on particular target groups: Guhr Steuerberatung, for example, supports primarily freelancers (members of the liberal professions) and small to medium-sized businesses. The firm also has sound sector knowledge in areas such as law practices, medical practices, IT, and the skilled trades. As a business owner, you benefit from this specialisation!

Many business owners want a comprehensive service from their tax advisory firm and appreciate it when firms take advantage of the benefits of digitalisation. Does your tax advisory firm limit itself to core tasks such as filing tax returns? Does it make only sparse use of digital tools? Switch to a better tax advisory firm! Guhr Steuerberatung, for instance, offers valuable additional services such as taking on your financial and payroll bookkeeping. The experts handle these tasks largely digitally, which reduces the workload and therefore the costs.

Have you made the fundamental decision to change your tax adviser? Now carry out the switch step by step! The most important tip is: first find a new tax advisory firm that is a perfect match for your requirements. Arrange a consultation and discuss the future working relationship. Only then should you give notice to your current service provider. Tax advisory for businesses is an ongoing process — avoid finding yourself without a tax adviser in the interim!

Think carefully about what you expect from a tax advisory firm. What services do you require? Do you need specialist advisory services such as restructuring advice or succession planning? Also find out in detail about the firms you are considering — for example their additional services, digital offerings, and references. Once you have found the ideal tax advisory firm, you can take the next step: giving notice to your current provider.

There are two options when terminating a tax advisory engagement:

- The contract explicitly contains a notice period: In this case, you must observe this period. If there is good cause — such as negligent advice — you may give immediate notice of termination. Does the contract not contain a notice period, but your tax adviser relies on a corresponding provision in the general terms and conditions? Under German case law, this is not sufficient — you are entitled to terminate without observing a notice period.

- The contract contains no provision regarding a notice period: In that case, you benefit from § 627 BGB (German Civil Code). This provision stipulates that clients of a tax firm may terminate the advisory agreement at any time and without giving reasons.

Your future tax adviser will understandably need all relevant documents from the previous firm. These include:

- at least the annual financial statements for the last three years

- at least the tax assessments for the last three years

- a schedule of fixed assets

- management accounts (betriebswirtschaftliche Auswertungen)

Your previous tax adviser is required to make these documents available. The handover takes place with minimal effort: as a rule, the new adviser receives access to the electronic documents via a DATEV interface.

The final step: revoke the power of attorney granted to your former tax adviser and inform your tax office accordingly. Issue a power of attorney to your new adviser so that they can identify themselves to the office.

As a business owner, are you considering a change of tax adviser and looking for a competent firm with impressive knowledge across many industries and a consistent focus on the advantages of digitalisation? You have come to the right place with Guhr Steuerberatung!

Can you simply change your tax adviser?

You can change your tax adviser at any time, provided no notice period is stipulated in the contract. Otherwise, the contractually agreed notice period applies. You may give immediate notice of termination for good cause. Negligent advice with negative financial consequences, or missing relevant submission deadlines for tax returns, constitute good cause, for example. If your tax advisory contract contains no notice period, you enjoy complete flexibility — you do not even need to give reasons for your notice.

What does changing your tax adviser cost?

There are no fees for changing your tax advisory firm. The Tax Advisers' Fees Ordinance (Steuerberatergebührenverordnung) makes no provision for such a cost item. However, certain services may be charged twice. Your previous tax adviser may have begun a piece of work, for example, and the new tax adviser completes it again from scratch. For this reason, ensure that as many tasks as possible are completed before you switch.

How do I change my tax adviser?

Changing adviser requires you to terminate your current tax advisory engagement. Find your future tax adviser beforehand to avoid any gap in service! After giving notice, all relevant documents are transferred to the new firm — this now happens largely or entirely electronically. It is important that you revoke the power of attorney from the previous adviser and issue one to their successor.

How do you give notice to a tax adviser?

You should submit your notice in writing. State the date on which the termination is to take effect. If you have agreed a notice period in your contract, you must take it into account. Do you wish to give immediate notice for good cause? State this good cause and, as a precaution, also give ordinary notice. If the good cause you cite proves to be legally untenable, the ordinary notice of termination with its notice period will take effect.