Situation and challenge
Changing accounting firms is one of the most sensitive stages in a company's finance and accounting arrangements. For many management boards, it brings a risk of incomplete data, incorrect balances, missing documents, problems with tax returns and a loss of continuity in day-to-day accounting.
A medium-sized trading company operating in both Polish and overseas markets approached TOP Outsourcing in precisely this situation. The company was already using an external accounting firm, but over time it noticed growing uncertainty in its financial reports, discrepancies in accounting data and insufficient control over receivables and payables.
The management board's concern went beyond accounting quality alone. The company needed reliable financial data for business decisions and was also preparing for an audit of its financial statements. The task therefore required not only taking over the books, but also putting them in order, verifying entries and preparing clear, dependable documentation.
TOP Outsourcing was asked to take over the accounting urgently, analyse the data supplied by the previous accounting firm and introduce a structured accounting outsourcing model for the company.
The problem: the risk of a disorganised accounting handover
The client had been considering a change of accounting firm for some time but was concerned about the transition. The greatest challenge was maintaining continuity of accounting and tax services while putting historical data in order.
The main problems included:
1. Uncertainty about the completeness of accounting documents
The existing accounting work had been handled inconsistently. Reports lacked some supporting source documents, certain transactions had been recorded in incorrect categories, and supplier and customer balances were not reconciled regularly.
This created a risk that the data in the books did not fully reflect the company's actual financial position.
2. Risk of errors during accounting data migration
Transferring accounting records from one firm to another requires careful organisation and control. A lack of procedures can lead to lost data, duplicate entries, incorrect opening balances or inconsistencies between historical data and current records.
The client expected the accounting data migration to be secure, documented and capable of subsequent verification.
3. Concerns about continuity of ongoing accounting services
The company had extensive day-to-day operations. Any accounting delay could affect payments, customer and supplier settlements, tax returns, management reporting and communication with the corporate group.
One of the key objectives was therefore to take over the books without interrupting the company's daily operations.
4. Preparation for the financial statement audit
The approaching financial statement audit required orderly books, reconciled balances, complete documentation and clear supporting schedules.
The client needed a partner that could take over ongoing accounting and organise the data to facilitate cooperation with the statutory auditor.
What TOP Outsourcing did
The solution: a structured handover of the books and a reliable accounting outsourcing model
The TOP Outsourcing team began by preparing an accounting handover timetable. We defined the scope of work, deadlines, responsible individuals and priorities for the first weeks of cooperation.
Our objective was to manage the change of accounting firm so that the client retained full service continuity while gaining reliable information about the condition of its books.
Step 1: Reviewing documentation and assessing accounting risks
The first stage was to analyse the documents and data supplied by the previous accounting firm. Among other things, we checked:
- the completeness of accounting entries
- the accuracy of ledger account balances
- outstanding supplier and customer balances
- agreement between entries and source documents
- the correct classification of expenses and revenue
- the completeness of VAT registers
- the accuracy of fixed asset records
- compliance of the accounting policies applied with the Polish Accounting Act
- potential areas of tax and financial reporting risk.
During the work, we identified, among other issues, a lack of regular reconciliations of receivables and payables accounts, duplicate entries, outdated customer and supplier data, and items requiring further explanation.
Step 2: Putting data in order and reconstructing missing items
After the initial review, we began putting the accounting records in order. This stage involved both correcting inaccurate entries and reconstructing missing information from the available data.
As part of the work, we:
- completed incomplete accounting entries
- reconstructed missing items from transaction histories
- reconciled bank account balances
- reviewed customer and supplier balances
- corrected the misclassification of expenses and revenue
- put the fixed asset records in order
- prepared a list of items requiring a decision or further confirmation from the client.
All significant actions were documented so that the management board had full visibility of the changes made.
Step 3: Migrating the books to TOP Outsourcing's system
Once the data had been put in order, we moved on to migrating the accounting records into the system used by TOP Outsourcing.
The migration included:
- configuring a chart of accounts suited to the company's business
- transferring historical data
- importing opening balances
- checking the accuracy of the transferred data
- introducing an electronic document workflow
- organising the reporting structure
- adapting the books to the needs of ongoing accounting and management reporting.
Appropriate control procedures enabled the data to be migrated without loss of information or disruption to the client's ongoing operations.
Step 4: Preparing a control report after the handover
A key element of the project was a control report prepared after taking over the books. It summarised their condition, the irregularities identified, corrections made and areas requiring further monitoring.
The report included:
- an assessment of data completeness
- confirmation that balances had been reconciled
- a description of the main corrections
- identified accounting and tax risks
- the status of the books after migration
- recommendations for ongoing accounting services.
The report was written to be clear to the management board and useful in subsequent cooperation with the statutory auditor.
Step 5: Moving to ongoing accounting services
Once the handover was complete, the client moved smoothly into ongoing cooperation with TOP Outsourcing.
The new service model included:
- ongoing maintenance of the accounting records
- regular balance reconciliations
- checking customer and supplier balances
- timely preparation of tax returns
- a structured electronic document workflow
- ongoing contact with the accounting team
- access to up-to-date financial data and management reports.
The company gained not just a new accounting provider, but a stable partner responsible for the reliability and quality of its finance and accounting processes.
Results and summary
Results: clear records, service continuity and reliable reporting
The client saw tangible benefits from the structured accounting handover in the very first month of cooperation.
A complete and organised accounting system
The company gained consistent financial records, with reconciled balances, identified errors and data organised to reflect its actual business activity.
No interruption to ongoing services
The change of accounting firm proceeded without disruption. Payments, tax and other settlements, reports and ongoing communication were handled on time.
Greater confidence in accounting and tax compliance
Data verification, control procedures and documented corrections reduced the risk of accounting errors and gave the client greater confidence in the quality of financial data.
Better preparation for the financial statement audit
Reconciled balances, the control report and complete documentation made it easier to prepare materials for the financial statement audit.
Up-to-date financial data for the management board
The reporting model introduced enabled the management board to monitor the company's financial position more effectively and make business decisions faster.
Summary
This case study shows that changing accounting firms does not have to mean disorganisation, interruption or a risk of data loss. A properly planned handover makes it possible to organise documentation, verify accounting entries and introduce a reliable accounting outsourcing model.
By working with TOP Outsourcing, the client benefited from:
- orderly accounting records
- reconciled balances
- clear documentation
- secure data migration
- continuity of ongoing accounting services
- better preparation for the financial statement audit
- access to up-to-date financial data.
TOP Outsourcing supports companies in changing accounting firms in a controlled way, handing over accounting records, putting data in order and maintaining ongoing accounting through outsourcing.
