How to Switch Accountants — A Step-by-Step, Stress-Free Guide for 2026

How to Switch Accountants — A Step-by-Step, Stress-Free Guide for 2026

Switching accountants is one of those decisions business owners typically put off. Not because there are no complaints, but because the transition seems complicated, time-consuming, and risky — especially when your current accountant holds EDS access, all your company's documentation, and knowledge of its financial history. Yet staying with a bad accountant can end up costing significantly more than switching — fines for late filings, missed tax optimization opportunities, and the risk that comes when your company's accounting policy doesn't meet 2026 requirements.

In this guide, we walk through the entire process step by step — from the first warning signs to the moment your new accountant has fully taken over.

Key takeaways

• If you recognize at least three of the seven warning signs (missed deadlines, poor communication, zero reporting, etc.), seriously consider switching accountants

• Always find your new accountant BEFORE letting the old one go, and draw up a document handover certificate

• Revoking the old accountant's EDS authorization is a critical step — without it, they can still file documents on your company's behalf even after your working relationship ends

• Under Article 40 of the Accounting Law, a licensed outsourced accountant must carry mandatory civil liability insurance with a minimum liability limit of €3,000 (or €5,000 if at least one client's net turnover exceeds €300,000) — that can be significantly lower than the actual damage from a serious error

• A typical full transition takes roughly 30–60 days from the decision to the new accountant being fully up to speed

1. Warning signs: when it's time to switch accountants

Before thinking about the process, it's important to confirm the switch is actually necessary. Here are the seven signs we at Balansis hear most often from clients switching from other accounting service providers:

• You find out about VID deadlines after they've already passed. Your accountant doesn't inform you of upcoming filing deadlines, and you only learn about the delay when VID sends a penalty notice.

• Your accountant takes several days to answer questions — or doesn't answer at all. Normal communication is part of the basic service, not a luxury add-on.

• You pay fines for mistakes your accountant made. If you're covering fines out of pocket instead of the accountant taking responsibility, that's a serious problem.

• You receive no reports on your company's financial position. By month's end, you're entitled to at least a balance sheet and a profit and loss statement — not just an invoice for payment.

• Your accountant never mentions tax optimization opportunities. A good accountant actively suggests ways to legally reduce your tax burden — for example, using 2026's alternative corporate tax regime (15% + 6%) or timing profit distribution for a more favorable period.

• You feel your company is "too small" and doesn't get enough attention. Even if your company only has a few dozen transactions a month, it's entitled to full-quality service.

• Your accountant hasn't told you about significant legislative changes. 2026 alone brought several major changes: the new alternative corporate tax regime, the EDS authorization change (secure identification tools only), and the VAT pilot project for food (a 12% rate for a year, from 1 July, on bread, milk, eggs, and poultry). If your accountant hasn't mentioned these, they're not keeping up with industry developments.

If you recognize at least three of these signs, seriously consider switching accountants.

2. Before making the change: what to prepare

Before formally notifying your current accountant that you're ending the relationship, take three preparatory steps.

2.1. Check your contract terms

Read your contract with your current accountant. Pay attention to:

• The notice period. Typically, one month is standard in accounting outsourcing contracts, though some contracts set a longer period or a minimum contract term (for example, six months or a year). This period isn't set by law as a standard — it's entirely whatever your specific contract states.

• The document handover procedure. Does the contract specify a timeframe and format for the accountant to hand over documents after the relationship ends?

• Additional fees. Does the contract provide for any fee for preparing a document archive or exporting data?

2.2. Choose your new accountant before letting the old one go

Never end your relationship with your current accountant before you've found a new one. Reasons:

• The transition period can take several weeks, and during that time someone needs to ensure ongoing filings are submitted.

• Your new accountant can help prepare the document request — a professional knows exactly what to ask for.

• You can time the transition date so it doesn't coincide with filing deadlines (for example, the 20th, the VAT return deadline).

2.3. Prepare a list of everything to get from your old accountant

This checklist will be your main tool during the transition. A detailed list follows in the next section.

3. What your old accountant is obligated to hand over

When ending the relationship, your accountant is obligated to hand over all documents and data related to your company's accounting. Here's the exact list of what you should receive.

Mandatory documents and data to request

1. Primary documents (originals):

• All incoming and outgoing invoices

• Bank statements and payment orders

• Cash receipts

• Contracts with clients and suppliers

• Delivery notes, acceptance-transfer acts

• Expense report documents

2. Accounting registers:

• The general ledger (a record of all account turnover and balances)

• The strict-accountability document register

• The fixed asset register

• Employee personal account cards (if there are employees)

• Monthly payroll calculation registers

3. Filed returns and their proof:

• Printouts or PDF files of all returns filed with VID for the past 3 years

• EDS submission confirmations (unique submission numbers)

• VAT returns and their attachments

• Employer reports

• Corporate income tax returns

• Filed annual reports

4. The accounting database:

• The full accounting software database (for example, Jumis, Horizon, Pats.lv, Excel)

• The database password and access details (if the software is owned by your company)

• A statement of all account balances as of the most recent date

5. Access and passwords:

• Confirmation that EDS authorization has been revoked

• Access credentials for any software purchased in the company's name

• Cloud service account access details

6. Other essential documents:

• The accounting policy (the document defining the company's accounting methods)

• Correspondence with VID for the past 3 years

• Information on VAT refunds filed but not yet received

• Information on any ongoing or planned VID audits

4. The document handover certificate

We recommend drawing up a document handover-acceptance certificate — it protects both you and the accountant from misunderstandings later. The certificate should include:

• A list of the documents being handed over (can be an attachment)

• The date the documents were handed over

• A statement that the documents handed over correspond to the company's accounting records for the period from [start date] to [end date]

• Both parties' signatures

Important: before accepting the documents, make sure you've received everything on the list above. Proving something wasn't handed over becomes significantly harder once the certificate is signed.

5. Revoking EDS authorization

This is a critically important step that many business owners forget. As long as your old accountant has active EDS authorization, they can legally file documents on your company's behalf — including after your working relationship ends.

How to revoke your accountant's EDS authorization

1. Log in to eds.vid.gov.lv with your e-identity (Smart-ID, eID, or eParaksts). Important: since 1 January 2026, EDS can no longer be accessed with a username and password — a qualified electronic identification tool is required.

2. Go to "Settings" → "Users and Their Rights".

3. Find the accountant in the list whose access you want to revoke.

4. Click "Block access to the system" (to block just one specific system, such as EDS) or "Block in all systems" (to block access to all systems the user had access to through this authorization) — these exact labels are confirmed in VID's own informational material on this section.

5. Confirm the change was saved — the system will show a confirmation message.

Authorization can also be revoked in person at any VID customer service center, by presenting an ID document.

A precautionary step: after blocking your old accountant's access, check whether the list contains any other unfamiliar users or outdated authorizations. If, in addition to EDS, your accountant was also granted access to specialized systems such as the customs declaration system EMDAS (relevant if your company handles imports/exports), it's worth separately confirming that access there has been revoked too — don't rely on a single click if your company uses several specialized VID systems.

Source: VID — informational material "How to use the EDS 'Users and Their Rights' section"

6. Onboarding your new accountant

Once documents have been received from your old accountant, it's time to bring the new one on board. Effective onboarding includes these steps:

6.1. Handing documents over to the new accountant

Hand over to your new accountant everything you received from the previous one. The most common approaches:

• Digital handover: all documents are uploaded to a shared folder (such as Dropbox or Google Drive) or sent by encrypted email.

• Physical handover: documents are handed over in person, with a separate handover-acceptance certificate.

6.2. Granting EDS authorization to the new accountant

1. Log in to EDS with your e-identity.

2. Go to "Settings" → "Users and Their Rights".

3. Select "Add New User" and enter your new accountant's personal code.

4. Grant the necessary rights: "View rights," "Edit rights," and "Submit rights" for the relevant document types (employer reports, VAT returns, corporate tax returns, etc.).

5. Important: don't grant full access to every document type — keep personal documents (such as your annual personal income tax return) outside your accountant's access.

6.3. Introducing your accountant to the business

For your new accountant to work effectively, provide them with:

• A brief company description: field of activity, key clients, suppliers, transaction specifics

• Bank account access: view-only online banking rights (no ability to make payments)

• Contact information: who to reach out to about invoices, contracts, payroll questions

• The previous year's annual report and current balance sheet: to understand the company's financial position

6.4. The trial period

In the first month after the transition, we recommend:

• Checking that your new accountant has filed all ongoing returns by their deadlines

• Comparing at least one payroll calculation against the previous period to confirm consistency

• Discussing tax optimization opportunities — a good accountant will actively propose solutions rather than wait for your questions

7. How long is your previous accountant liable?

A frequently asked question: if VID finds an error a year later during an audit — an error your previous accountant made — who's liable?

The answer depends on whether the accountant was a staff employee or an outsourced provider.

Outsourced accountant:

Liability is governed by the contract between your company and the accountant. A licensed outsourced accountant (licensing has been mandatory for everyone providing these services since 1 July 2023, under Article 38 of the Accounting Law) is required, under Article 40 of the same law, to carry mandatory civil liability insurance with a minimum liability limit of €3,000 (or €5,000 if at least one client's net turnover in the previous reporting year exceeds €300,000). That means: if the accountant's error causes losses, insurance covers them — but only up to the policy's limit. If the actual loss exceeds the policy's limit (which could be close to the statutory minimum if the accountant hasn't opted for higher coverage), the difference may go uncovered and would need to be pursued directly with the accountant, or in court.

You should also expect that contracts often specify a particular liability period (for example, 12 or 24 months after the relationship ends) — but this period isn't set by law; it depends entirely on the specific contract's terms and can be shorter or longer. After the period stated in the contract, liability may be limited, unless the error was deliberately concealed.

Staff accountant:

Under labor law, the employer is liable for an employee's mistakes. However, the employer has the right to seek damages from the employee if the error was grossly negligent or intentional. In practice, this is a complicated process.

Practical tip: before ending your relationship with an outsourced accountant, agree in writing on the liability period and the communication process in case VID has questions about the period during which the accountant handled your accounts. It's also worth asking exactly what coverage your accountant's civil liability policy provides — whether it's the statutory minimum (€3,000) or whether the accountant has opted for a higher limit better suited to your company's transaction volume.

Source: Accounting Law, Articles 38 and 40 (licensing; minimum civil liability insurance limit)

8. A typical transition process: timeline

This timeline is a guideline — the actual duration depends on the contract's notice period and how quickly your old accountant prepares the documents.

Your transition checklist

• Read your contract with your current accountant (notice period, document handover terms)

• Find a new accountant and agree on a start date

• Notify your old accountant in writing of the termination

• Request a printout or export of the full accounting database

• Receive all primary documents (invoices, receipts, contracts)

• Receive copies of all returns filed for the past 3 years

• Sign the document handover-acceptance certificate

• EDS: revoke your old accountant's authorization (and check other VID systems too, such as EMDAS, if used)

• EDS: grant authorization to your new accountant

• Hand over all documents and the database to your new accountant

• Brief your new accountant on your company's specifics

• In the first month, check that all ongoing returns were filed on time

Switching accountants isn't an everyday event, but it isn't an emergency either. Most new accountants are invested in making the transition smooth — it's a matter of their own reputation too. The key is avoiding a situation where documents get stuck "between two accountants" while the next filing deadline approaches.

If you're considering switching accountants, our team can help with the transition process — from preparing the document list to setting up EDS access. Get in touch, or see our accounting services.

Related reading: how to choose an accounting firm and how much accounting costs.

Sources

• Accounting Law, Articles 38 and 40 — the outsourced accountant licensing requirement and the minimum civil liability insurance limit (€3,000 or €5,000)

• VID — informational material "How to use the EDS 'Users and Their Rights' section"

Last updated: September 2026. Information based on official VID materials on EDS use, the Accounting Law, and industry practice.