Changing your advisory firm can raise questions: what documentation needs to be retrieved, when is the best time to make the handover, whether any information will be lost, or how dealings with the Spanish Tax Agency (Hacienda) and Social Security (Seguridad Social) will be coordinated. The key is to plan the change and make sure the new firm receives all the information it needs to continue managing your affairs without interruption.
In this guide we review the signs that may justify a change, the best time to make it, the documentation you should request and the main aspects that need to be coordinated for an orderly transition.
Why change your advisory firm?
You do not always need to wait for a serious problem to arise. There are signs that your relationship with your advisory firm may no longer be meeting the real needs of your business:
- Recurring errors or issues in filing taxes and formal obligations.
- Poor communication or difficulty getting clear, timely answers.
- Little understanding of the specific financial, tax or employment situation of the business.
- No planning and no proactive information about obligations, risks, grants or possible alternatives.
- A service limited to filing tax forms, with no support in decision-making.
- Excessive response times or a support model that no longer fits the needs of the company or self-employed professional.
The aim of the change should not simply be to replace one provider with another, but to improve the quality of information, forward planning and support in managing the business.
When is the best time to change your advisory firm?
You can change your advisory firm at any time, but the transition is easier if you avoid doing it in the middle of a year-end close, a tax filing season or an important deadline.
- Before setting the date, check which taxes, payrolls, social security contributions, accounting closes or annual accounts are pending.
- If you are self-employed, it may be convenient to coordinate the change at the end of a period or financial year, provided there are no outstanding filings.
- If you are an SME, pay particular attention to the accounting close, the preparation and filing of annual accounts and any audit or corporate procedure under way.
- Check the termination terms of your contract with your current advisory firm and, if applicable, the notice period.
- Allow a few days of overlap or coordination between both firms when the volume or complexity of the business makes it advisable.
Rather than choosing a specific month, the important thing is to pick a date with a light administrative workload and prepare a handover schedule.
Documentation you need to change your advisory firm
The exact documentation will depend on whether you are self-employed or a company, the taxes you file, whether you have employees and the nature of your business. As a starting point, you should prepare and hand over to the new firm the information needed to reconstruct your tax, accounting, employment and corporate position.
Tax documentation
- Current tax registration return and any amendments filed: Modelo 036.
- VAT returns filed and, where applicable, related summary or informative returns.
- Instalment payments and personal income tax (IRPF) returns, as applicable.
- Withholding and payment-on-account forms, including those relating to employees, professionals or rentals, where applicable.
- Informative returns filed, such as Modelo 347 where there is an obligation to file it.
- Corporate Income Tax (Impuesto sobre Sociedades) and payments on account, in the case of companies.
- Information requests, notifications, deferrals, appeals or open proceedings with the authorities.
- Balance sheets, trial balances, general ledgers, journals and other accounting information needed to continue the financial year.
- Invoices issued and received, bank statements and supporting documentation for the accounting entries.
- The relevant accounting books and corporate registers.
- Annual accounts filed and proof of filing, where applicable.
- Deeds, articles of association, powers of attorney, relevant contracts and up-to-date corporate documentation.
Employment documentation
- Employment contracts, payslips and workforce data.
- Contribution information and Social Security documentation.
- Holidays, sick leave, incidents, wage garnishments or other open matters.
- The applicable collective agreement and any relevant individual terms and conditions.
Important: not all documentation has the same retention period. For tax purposes, the general limitation period is four years, but commercial legislation requires certain books, documents and supporting records to be kept for six years, and longer special periods may apply.
How to organise the handover to avoid problems
- Ask your outgoing advisory firm for an inventory of documentation and outstanding obligations.
- Confirm which forms have been filed and which are still to be filed.
- Check whether there are any electronic notifications, information requests or proceedings under way.
- Provide the new firm with certificates, access credentials and authorisations through secure channels; avoid sharing personal passwords where a power of attorney or authorisation route is available.
- Register or link the new firm in the representation or authorisation systems required for the procedures it will be handling.
- Ask the new firm to confirm receipt and to provide a list of anything that may be missing.
Changing your advisory firm in Madrid: what to bear in mind
The basic procedure is the same as in the rest of Spain, as most tax and Social Security obligations are handled electronically. Even so, for companies and self-employed professionals in Madrid it can be useful to work with a firm that is familiar with regional legislation, regional incentives and the local procedures that affect their business.
It may also be worth considering the availability of face-to-face service, sector specialisation and the ability to coordinate tax, accounting, employment and corporate matters within a single team, such as the experts at Afianza.
Frequently asked questions about changing your advisory firm
What happens if my former advisory firm is late or does not hand over the documentation on time?
It is advisable to request the documentation in writing and keep a record of what information is missing. If the delay puts an upcoming obligation at risk, the new firm should identify the available alternatives as soon as possible and prioritise the essential documents. If the dispute continues, it may be necessary to consider the contractual or professional remedies appropriate to the case.
Is there a cost to changing your advisory firm?
The change in itself does not involve any general administrative fee. However, there may be costs arising from the contract with the outgoing firm, from additional closing or reconstruction work, or from the onboarding terms of the new firm. It is advisable to review both proposals in writing.
Do I need to authorise the new firm to act on my behalf before the Tax Agency and Social Security?
For the new firm to carry out certain procedures on your behalf, it will need the appropriate representation, power of attorney, enrolment or authorisation for each body and procedure. The specific method is not the same in every case, so it should be set up during the handover.
How long does it take to change your advisory firm?
It depends on the volume of documentation and whether there are obligations, payrolls, information requests or closes in progress. For simple businesses it can be resolved quickly; for more complex companies it is advisable to plan a transition and keep track of outstanding items.
