handover

[Hopeful]

Hello everyone
I'm joining a new company as the only senior accountant there responsible for everything,the resigning accountant has 5 days only for the handover,it happened to me before that I worked in a company where the resigning accountant left a mess for me,I had to redo all months! how can I make sure the resigning accountant didn't leave a mess for me full of mistakes as I will be the one closing the year although I will have been there for 1 month only by year end? is there a handover list that can help me
rhanks

 

[BIG E]

You have asked an overly broad question without providing any specific details as to what responsibilities this person had.
If it were me, I would be concerned about which employees have which specific responsibilities in the accounting process, and
learn what accounting controls there are over the accounting process such as monthly bank reconciliations, reconciling of accounts
receivable and accounts payable balances, recording tax (including payroll tax) liabilities along with reconciliation of payroll per the
payroll service provider, contacting the CPA firm handling the corporation tax matters to coordinate your responsibilities, reconciliation of loan balances. But before you do that all, you need to have a working knowledge of the company's accounting system and who to contact should you have program problems.

 

[Hopeful]

You have asked an overly broad question without providing any specific details as to what responsibilities this person had.
If it were me, I would be concerned about which employees have which specific responsibilities in the accounting process, and
learn what accounting controls there are over the accounting process such as monthly bank reconciliations, reconciling of accounts
receivable and accounts payable balances, recording tax (including payroll tax) liabilities along with reconciliation of payroll per the
payroll service provider, contacting the CPA firm handling the corporation tax matters to coordinate your responsibilities, reconciliation of loan balances. But before you do that all, you need to have a working knowledge of the company's accounting system and who to contact should you have program problems.

Thanks for replying
the employee is the only accountant there,he does everything.he uses quickbooks
the shop is a bakery and he does everything including costing.his costing system is basically considering cost to be 27% of sales everymonth.
I mention this because I think it needs review.

you said"contacting the CPA firm handling the corporation tax matters to coordinate your responsibilities" would you please elaborate?

what do you think of my plan of asking him to provide me with raw data for me to make sure of each month's closing and VAT report? to make sure I understand everything and also that he did not make mistakes I would be accountable for with the CPA and tax authorities.

thanks again

 

[BIG E]

I would find out if there are any open issues right now with any taxing authorities - such as tax audits, notices from any government authorities that are unsettled or in process, copies of previously filed payroll, sales and use tax, work comp filings. I would also find out who the entity uses for legal representation when legal issues come up.
You also need to know what specific issues regarding the bakery industry or health department that need to be complied with
I assume from what you've said, you'd be preparing the financial statements for the entity as well?

 

[Hopeful]

I would find out if there are any open issues right now with any taxing authorities - such as tax audits, notices from any government authorities that are unsettled or in process, copies of previously filed payroll, sales and use tax, work comp filings. I would also find out who the entity uses for legal representation when legal issues come up.
You also need to know what specific issues regarding the bakery industry or health department that need to be complied with
I assume from what you've said, you'd be preparing the financial statements for the entity as well?

Yes ,I will be in charge of financial reporting as well,management will hire a fresh graduate later on as they said.

 

[BIG E]

You might be interested in reading this - https://www.irs.gov/pub/irs-pdf/p526.pdf

It discusses on P. 13 the proper tax treatment of donation of food inventory.

 

[Hopeful]

You might be interested in reading this - https://www.irs.gov/pub/irs-pdf/p526.pdf

It discusses on P. 13 the proper tax treatment of donation of food inventory.

thank you