Staff leave for many reasons, and they take their knowledge and skills with them. Therefore, if you run a business, it is imperative that you know what happens in each of your departments. Otherwise, there can be several unintentional and potentially difficult challenges and discoveries that occur during the turnover.
Below are a few key points that business owners should be aware of regarding their accounting department to ensure a smooth transition during staff turnover.
What to know while your trusted Accountants/Bookkeepers are in still place, and everything is working smoothly:
- Know your Chart of Accounts and understand where transactions are recorded. Run a Profit & Loss Detail report and ensure that transactions are recorded exactly where you want. If your accountants are putting expenses in categories that you would not expect, understand why. Document all movement of funds that happen at quarter-end or year-end.
- Create documentation of processes, calendars, and checklists. Accounting has scheduled activities, some are standard for all businesses (like payroll taxes), and some are unique to your business (like reports that are distributed). Establish an annual calendar of activities, create checklists, and verify all activities are being done. This schedule keeps everyone on track with processes and ensures nothing gets missed if there is a transition to new staff. Document steps for unique activities that only occur annually (such as 1099s) or estimating that is specialized for your business.
- Maintain a list of third-party integrations or software that your accountants use and know the passwords. Make sure you are an admin for your accounting software (QuickBooks, NetSuite, etc.). Other applications could be payment processing, invoice processing, website design to accept payments, bank logins for business credit cards, payroll processing, benefits or 401k processing.
- Check-in regularly. Know what your accountants/bookkeepers are working on. Ask about irregularities in transactions so you are aware of current issues, and you know where to look for problems when transitioning to new staff occurs.
- Regularly review job descriptions for each of your staff as part of their annual review process. Document unique skills that make your current staff productive and efficient. If the time comes to post a job description, you already have a starting point on what your previous accountant/bookkeeper did and skills that made them successful.
What to know during a staffing transition:
- Be prepared for transition time as your new staff learns your business and internal processes. Remind other departments to be patient and helpful.
- Use those checklists, processes, and calendars to ensure nothing is missed. Take extra time to review reports and bank statements to verify that income and expenses are remaining consistent. Running a Profit & Loss report by month can be a very helpful tool to compare the income/expenses for a few months before the transition to current financials.
- Watch for other staff to take advantage of the transition by not following previous guidelines on receipts, approved expenses, PTO requests, etc.
- Have a backup plan. Consider having a third-party accountant/bookkeeper come alongside to support the new staff in their transition. This can relieve some of the day-to-day tasks and allow the new staff to focus on the bigger picture until they find the rhythm in the department.
While staff turnover, particularly in crucial departments like accounting, can present significant challenges for business owners, transition can be a very positive experience. It brings fresh eyes on old processes and can create an environment excited to support progress and innovation. By proactively understanding and documenting key processes, maintaining regular oversight, and preparing for transitions, business owners can mitigate potential disruptions and leverage it as an opportunity for positive change!