Changing accountants goes smoothly when the records move before the deadline does. Start with what you already have, ask the outgoing accountant for what only they hold, and keep your own copy of everything.
Records you can get yourself
- Prior returns: your copies of recent federal and New Jersey returns, with every schedule. If federal copies are missing, you can view, print or download transcripts from your IRS Individual Online Account (opens in a new tab). A transcript shows most line items but not every attachment.
- Notices: any IRS or New Jersey notices received, with your replies.
- Estimated payments: confirmations for the current year's federal and New Jersey payments.
- Your accounting file: confirm that you own the QuickBooks or other subscription, or can export the file.
Records to ask the outgoing accountant for
- Depreciation and amortization schedules for every asset still in use. The next preparer needs that history to continue them.
- Carryover schedules: losses, credits or other amounts carried into the next year.
- For a partnership or S corporation, the owners' basis and capital records, if they were kept.
- The year-end trial balance and adjusting entries behind the last return, so the books and the return can be tied together.
- Copies of elections filed, such as an S-corp election and its acceptance letter.
Ask in writing, and ask early. Copies of your returns and the schedules behind them are what the next preparer needs most.
How long to keep records
The IRS's general guide in How long should I keep records? (opens in a new tab):
| Situation | Keep records for |
|---|---|
| Most returns | 3 years |
| Income you should have reported was not reported, and it is more than 25% of the gross income shown on the return | 6 years |
| You claim a loss from worthless securities or a bad debt deduction | 7 years |
| Employment tax records | At least 4 years after the tax is due or paid, whichever is later |
| Records for property | Until the period of limitations expires for the year you dispose of it |
Timing
Start the switch well before a filing deadline. Record requests and file exports take time.
What happens next
Tell me the returns involved, the years and whether there's an accounting file through the contact form. Don't send passwords or documents there.
