How To Sack a Bookkeeper?


Recently, I encountered an amusing situation when a client, under the direction of a new chairperson who was unaware of the extensive work we provided, sent a brief termination email for our bookkeeping services. This experience underscores how entwined the bookkeeping-client relationship can become, highlighting the importance of clear communication.

The Crunch in Bookkeeping Relationships

Sometimes a bookkeeping/client relationship becomes crunchy. That may be for a few different reasons but usually it comes down to lack of communication which leads to distrust or feelings of being undervalued. The first thing I suggest is to organise a meeting to have an honest conversation.

What To Consider When Disengaging a Bookkeeper’s Services?

  1. Review Contractual Obligations: You need to look at their Engagement Letter/Proposal, specifically their Service Terms. There may be a contractual time frame for how much notice you need to provide.
  2. Consider the Timing: Be aware of the financial period if it is near a BAS lodgement due date or the end of the financial year it may be advisable to finish that period with them give them notice and look for a new bookkeeper to start in the next financial period (quarter) or financial year.
  3. Software Ownership: Who owns the accounting software? Be prepared that ending the engagement with a bookkeeper may mean you need to be given administrative control of the software.
  4. Logins and Acess: What other software logins do they have to assist you with your bookkeeping? You will need to remove their access from these.
  5. Access to Software and Documents: Does the bookkeeper have any templates/documents specific to your business that your business needs access to? If the bookkeeper has access as admin, check if it can be shared under copyright.

Finally, beware of a new bookkeeper (or accountant) wanting you to change accounting software. This is like moving house, very expensive and you could also lose information in the process. If the new bookkeeper does not know the software you know and love they might not be an ideal match for your business.

The best approach to this is to keep it amicable and be considerate in how you handle this situation you may need the previous bookkeeper and new bookkeeper to do a handover this can be very advantageous to avoid any disruptions to your business.

Additional Business Concepts Is Here to Help!

To ensure a smooth transition and safeguard your financial interests, consider partnering with Additional Business Concepts. Our expertise in bookkeeping and tailored financial solutions can seamlessly guide you through the process, ensuring continuity and efficiency for your business. 

Connect with us today to discuss how we can support your financial journey and provide peace of mind during transitions.