What to do when your bookkeeper or accountant is retiring

If your bookkeeper has shared that they are planning to retire, you may be wondering what this means for your business. We have helped several business owners through this exact situation. Most of them did not realize how much their bookkeeper handled until they started thinking about the transition. The good news is that with the right steps, this does not have to disrupt your business.

Here is what to do first.

• Make sure your books are up to date. Ask your current bookkeeper to complete all reconciliations through the most recent month. This means your bank accounts, credit cards, loans, payroll liabilities, and sales tax accounts should all match their statements. You do not want to inherit unfinished work.

• Confirm you have full access to everything. That includes your accounting software, payroll system, bank feeds, merchant accounts, and any apps connected to your bookkeeping system. Make sure the login information is in your name or your business name, not your bookkeeper’s personal email.

• Request key reports. Ask for a current profit and loss statement, balance sheet, accounts receivable report, and accounts payable report. These give you a snapshot of where your business stands financially. Save copies for your records.

• Clarify outstanding items. Ask if there are any unresolved issues such as unreconciled accounts, unpaid invoices, missing receipts, or upcoming tax deadlines. It is much easier to address these while your current bookkeeper is still available.

• Create a transition plan. Decide when the last day of service will be and when the new bookkeeper will begin. If possible, allow for a short overlap period so questions can be answered smoothly.

• This transition is also a good opportunity to review your processes. Are your financial reports easy to understand. Are you receiving regular updates. Do you feel clear on your cash flow and profit. A change can be a chance to improve.

• Find a new bookkeeper as soon as possible. The sooner you bring someone in, the smoother the transition will be and the less disruption your business will experience.

If your bookkeeper is retiring and you are unsure what to do next, we can help you review your books, organize your accounts, and create a smooth handoff plan. Schedule a consultation with us. We are here to help you move forward with confidence.