How can I check the quality of a bookkeeping firm’s month-end close process?

Pick a handful of clients of different types and ask to walk through their latest closes. You want to see bank accounts matched to the books, loose items cleared, and notes about anything unusual. Ask what happens when the numbers do not agree and who decides how to fix them.

Look for review. Does a second person check the work, and is that sign-off recorded? A firm where the preparer is also the only reviewer has no real safety net. Ask how often adjustments are needed after the close, and how clients are told. Frequent corrections hint at weak steps earlier in the process.

Then look at timing. Ask what day each close is normally done and how often it slips. Check whether the same people are always late. Finally, ask if the process is the same for every client or tailored by habit. You are buying the method as much as the client list, and your accountant can help you judge whether the method will hold up after you take over. Ask for the schedule of recurring adjusting entries, which tells you which accounts the firm finds hard to settle each month.

Key takeaways

• Review actual closes for different client types, not a sample showpiece.
• Confirm a second person reviews and signs off, and that the sign-off is recorded.
• Ask how often corrections follow a close, and how clients are told about them.
• Check whether the routine is written or kept in someone’s head.