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Onboarding. What on earth is it and why does it take so long?
Up until a few months ago, I would have thought that onboarding meant hustling onto a plane or train. It conjured up images of adventure and precious vacation time, however it’s not the kind of onboarding that we talk about in bookkeeping circles.
Onboarding is the process of getting a business set up with the systems and processes that a bookkeeper or bookkeeping practice will use in order to provide bookkeeping services for that business going forward.
So, what does that entail exactly? Well, here’s a list of tasks and processes that may or may not need to be completed in order for a bookkeeper to take over the task of maintaining your business books:
- Review previous bookkeeping records and assess whether they’re complete, accurate and up to date
- Review previous tax return(s) to see how the business data has been recorded and submitted to CRA in the past
- Determine the volume and scope of work to be completed a) to catch up and b) to be done on an ongoing monthly basis
- Establish which platforms, systems, apps and integrations will be utilized to maintain the books going forward
- Set up and configure said platforms, systems, apps or integrations
- Customize the chart of accounts so it meets the particular needs of the business
- Connect bank accounts, sync transactions and upload data that’s older than 90 days
- Categorize all year to date transactions for the current fiscal year
- Reconcile all accounts against their respective bank statements for each month in the fiscal year
- Review, update and analyze all accounts receivable information
- Review, update and analyze all accounts payable information
- Review HST returns. Are they up to date? Are they being calculated properly?
- Is petty cash part of the business operation? If yes, how is it being tracked and reconciled? Is it currently balanced?
- Establish processes for the collection, evaluation and retention of source documents
- …and so much more.
Needless to say, it’s a very thorough process. Additionally, the later in the fiscal year that onboarding takes place, the greater the volume of data to comb through.
Don’t let any of these details overwhelm you, though. If you’ve reached a stage in your business operations where you’re no longer able to provide the detail and attention to your books that they require, please don’t hesitate to contact a bookkeeper. While the onboarding process can range from mere days up to several weeks, the sooner you allow a bookkeeper to get started assisting you, the sooner you can celebrate taking charge of your finances!
The fine print:
The information and opinions expressed by Lori K Aitken on this blog are based on her own personal experiences. Please consult your own legal and accounting professionals for specifics regarding how any of the topics covered here may apply to your business’s unique structure, needs, or operational policies and procedures.
