How do I check how an accounting practice’s staff are paid for busy season?

In an accounting practice, labour cost swings with the calendar. A single month of payroll tells you little, so request records covering a complete cycle and see how pay rises during the busiest weeks. Look for overtime, bonuses, retention payments, seasonal staff and contractors who fill gaps.

Then compare the payroll with the financial statements. Do the figures line up, or are some payments handled informally? Ask the seller to explain any arrangements that are not written down. An unwritten promise of a year-end bonus is still a promise your staff will expect you to keep.

Talk to the senior people, with the seller’s agreement. Ask what they expect to be paid in busy season, how time off is handled afterwards and what would make them stay or leave. Staff who feel overworked tend to be the first to go after an ownership change. Finally, confirm which employees hold professional credentials the practice relies on, and ask your lawyer and accountant how pay arrangements should be documented. Record anything you inherit before closing day. Ask what the practice does for staff in the weeks after the rush, since recovery time is part of pay.

Key takeaways

• Review payroll across a full cycle, not a single month.
• Ask about unwritten bonus or time-off promises and compare them with the statements.
• Speak with senior staff about what would keep them after the sale.