My Controller is Quitting. What Do I Do?
Over the course of the last year, I have worked with at least six different companies that have had the person the key accounting position (Controller, Accounting Manager, etc.) put in their notice. Turn please presents a challenge for companies, and I've learned that there are some essential things that need to be done when that turnover is in key positions within the accounting department. Today, I'm going to share with you the first three things that I do with my clients that find themselves in this situation. Let's jump in!
Document, document, document
Once someone has left the company, it's very difficult to ask them questions. Most of the questions you likely have can be answered by recording a video and documenting a standard operating procedure of their job responsibilities. Taking the time to compile example, deliverables, emails, and other supporting work papers, makes this transition a whole lot easier. Ideally, you are able to record a video walking through all of their responsibilities, particularly those that pertain to the monthly close cycle.
Obtain Account Logins
You might be surprised by how many different logins and systems that an accounting department can have. What might be. Even more surprising is that those logins and systems aren't always administered by the IT department. It is very often the case that a QuickBooks online or NetSuite license is administered solely by the person in charge of accounting and is tied to their email, and their cell phone for two-factor authentication. It's critical that you understand all the systems that are regularly used and get the appropriate level of access to them. I've said this in some other blog posts, but it bears repeating because it is just that important to maintaining business continuity. Make sure you get those account logins and change the passwords!
Assess and reallocate responsibilities as necessary
Depending on the size of your organization, there can be A variety of options when it comes to continuity for turnover in these accounting positions. Over the last year, I've seen a combination of the following resources used at various organizations:
Hire a consultant (such as myself) to support the transition and backfill for a short period while a new solution is found.
Outsource some or all of the responsibilities to a firm that specializes in the skills needed on a long term basis.
Reallocate responsibilities to other existing personnel (office manager, HR, etc.), and not hire any replacement.
Use the turnover as an opportunity to promote from within and hire for a different position.
Obviously, the best solution for you will depend on your current level of resources and the urgency of needing that replacement. I will tell you that the one thing that every organization had in common at this step was that the responsibilities and priorities of the old controller never matched up 100% with their successor. Even if the company hired a new person in the same position, that new person came in with a different understanding and skill set, then the old person and was therefore more effectively utilized in a slightly different way.
If you need to figure out what the existing controller does, make sure you have access to all the systems that are required for them to do their job, and assign responsibilities so that the business can continue operating in some way after they're gone, which may or may not involve a direct replacement.