What does an Interim Accountant Do?

​Imagine the following scenario: Your accountant has turned in their notice and now you need to find a replacement. You’re not confident that you’ll be able to find someone new for the role before they leave. Now you’re left with an important decision to make – do we bring in a temporary accountant to fill the gap or do we juggle those accounting duties ourselves while we hurry to find a replacement and hope the new accountant can catch us up when they get hired?

In our line of work this is more than a hypothetical scenario – it’s a narrative we hear every day from clients!
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Let’s dive into what an interim accountant does and why bringing one in can help your company when it’s experiencing an accounting transition. 

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​As a note, we’re going to specifically focus on the areas where we most commonly help businesses undergoing accounting turnover stage by stage, although we certainly recognize that unique business needs may also necessitate other forms of customized accounting support along the way as well.

Before the Departing Accountant Leaves
Given the current accountant shortage, you are almost certainly going to have a gap after your accountant gives notice before you can bring in a replacement. There’s simply little chance these days that you’ll be able to find a new accountant when your accountant gives their two weeks’ notice to pursue another opportunity. Unless your departing accountant is retiring or moving to another role within the company, which allows them to give a month or more of notice, you will likely find yourself with a gap between your accountant leaving and bringing a new person into the role. This is the main reason interim accountants are hired.

An interim accountant will spend some time with your departing accountant to act as a bridge to share institutional knowledge. They will take the time to get to know the business and ask key questions that are needed to handle the company’s finances while a replacement is sought. This knowledge sharing will equip the interim accountant to not only perform in the best interest of the business while playing their short-term part, but also set a full-time replacement up for success in the role later.

After an Accountant’s Departure
It’s great if an interim accountant can be brought in while the original accountant is still around, but that’s not always the case. Sometimes, an interim accountant is brought in after an accountant leaves, removing the possibility of learning about the business from them directly. And while this may make for a steeper learning curve, it doesn’t curtail their ability to be effective. 

When an interim accountant steps in after an accountant has already left they will look at the numbers and financial statements to get their footing and then keep the ball rolling with undertaking day-to-day accounting activities and maintaining internal controls to avoid business disruption. If the accounting environment that the interim accountant steps into is a mess, they will do cleanup work to establish timely and clear communications, organize and process daily transactions, and document current processes to create or update the company’s accounting manual.

Once a New Accountant is Hired
Once a replacement accountant is hired an interim accountant will typically stay on for a bit to ensure a smooth handoff. They will share institutional knowledge they have gained with the new accountant – either what has been handed down from the former accountant or what they have learned on the job themselves. Sometimes, they will also provide training to get new personnel up to speed on the company’s specific platforms and processes if the business uses systems that the replacement doesn’t have extensive experience with yet.

Furthermore, if there are problem areas or ongoing issues to be aware of an interim accountant is typically far more likely to address the elephant in the room than their predecessor or management because they are more removed from the source of the trouble. Being willing to discuss these impartially with an incoming accountant offers significant benefit to the company because it sets them up for long-term success. 

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​When you need an interim accountant, reach out to us! Our team of US-based accountants and bookkeepers brings a wide variety of experience across numerous industries and business stages. Whether you need help keeping everything operating well as you look for a new accountant, or you need an accounting consultant to come in and clean things up before you can move forward, we have the experienced personnel to help. Contact us today for short-term accounting solutions while you look to hire an accountant full-time.