How to Prepare Books for a New Bookkeeper to Take Over

Organize financial records, reconcile accounts, and document processes before handing off to a new bookkeeper.

  1. Reconcile all accounts through the transition date. Complete bank reconciliations, credit card statements, and loan accounts through your chosen cutoff date. Clear all outstanding reconciling items — research and categorize every unmatched transaction. Your cash balance in QuickBooks or Xero must match your bank balance to the penny.
  2. Organize source documents by month and type. File receipts, invoices, bank statements, and vendor bills in chronological order. Create digital folders if you operate paperless — name files with date and vendor (2026-03-15_OfficeDepot_supplies.pdf). Missing documentation costs your new bookkeeper 2-3x longer to research transactions.
  3. Document your chart of accounts and coding rules. Write down which expense categories you use for recurring purchases — office supplies vs. equipment, repairs vs. improvements, contractor payments vs. employee wages. Include your depreciation schedule and any multi-year prepaid expenses. One page of notes prevents weeks of cleanup later.
  4. Compile vendor and customer contact information. Create a spreadsheet with vendor names, contact info, payment terms, and account numbers. Include customer billing contacts and payment methods. Add notes about any special arrangements — net-60 terms, automatic payments, or seasonal billing cycles.
  5. Prepare access credentials and login information. List all financial accounts, software logins, and third-party integrations your bookkeeper needs. Include banks, credit cards, PayPal, Stripe, accounting software, and payroll systems. Set up view-only access initially — upgrade permissions after the transition period.
  6. Schedule overlap time for knowledge transfer. Plan 4-6 hours of direct handoff time over 2-3 sessions. Cover monthly closing procedures, recurring journal entries, and reporting deadlines. Walk through your most complex transactions from the past quarter — equipment purchases, loan payments, or multi-entity transfers.