Summary
A fired or departing finance lead can disrupt your operations. Secure access, document processes, protect internal controls, then onboard replacements or outsource. Stay proactive to avoid financial risk and ensure smooth transitions.
What happens when your Controller is Fired?
Let’s cut to the chase. Removing your internal finance lead can leave your small business exposed—especially when they control access or financial workflows. Reddit’s r/Accounting discussion lays out the risks and recovery strategies.
“When a finance controller is being fired … the company is in trouble”
“Lack of segregation of duties is often why these professionals get further control than they should have.”
Here’s a breakdown of what every owner should do before and after the transition.
1. Understand the Risks
Access risk: The finance lead may have exclusive credentials to banking, accounting systems, and payroll.
Control failures: Lack of segregation between bookkeeping, approvals, and reconciliation can hide fraud.
Data gaps: Missing workflow documentation can derail financial closing and reporting.
2. Quick Emergency Actions
Immediatelyreset passwordsfor all financial software and bank accounts.
Revoke remoteVPNor system accesssynced with the finance lead.
Secure anyphysical or digital backup devicesthey might manage.
3. Document & Audit Workflows
Map out who does what month-to-month (payroll, AP/AR, closing).
Institutedual controlfor reconciliations and vendor approvals.
Review last six months of transactions for irregularities—look for large payments, unexplained refunds, or unusual vendor activity.
4. Interim Coverage: Fractional CFO or Accounting Support
Hire atemporary internal operations expert orfractional CFOto cover missing expertise.
Directories likeSam's Listor firms likeQuickBooks ProAdvisorsor accounting services can step in quickly.
Use 30–60 day contracts to maintain flexibility during hiring.
5. Prevent Future Risks
Buildsegregation of duties: different people reconcile, approve, and record transactions.
Conductbackground/reference checksand financial integrity reviews.
Keep up-to-dateprocess documentationand access logs as part of your internal controls strategy.
Sample Turnover Checklist
| Task | Responsible Party | Completed (✓) |
|---|---|---|
| Reset bank & accounting passwords | CEO or Owner | |
| Audit access logs | IT or external auditor | |
| Secure physical drive and backups | IT / Admin | |
| Document monthly close process | Interim Operations Lead | |
| Implement dual approval workflows | CFO or Lead Finance Manager | |
| Review past 6 months transactions | Auditor or CPA | |
| Hire interim financial lead | Owner/HR | |
| Set segregation protocols in payroll | Internal Ops + CFO | |
| Run background checks | HR before new hire | |
| Archive AND continually update docs | Finance team |
FAQs
Q: Should I bring in an external auditor now?
A: If you suspect fraud or misstatement, yes. They can review account activity during the transition.
Q: Can a temporary bookkeeper fill in?
A: They can help with day-to-day tasks. But only a trained controller or CFO can rebuild controls and processes.
Q: How long should I maintain dual signoffs?
A: At least until you’re confident in new hires and controls—typically 6–12 months after leadership change.
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Author: Kimi, Co‑founder of Sam’s List
Kimi writes from real conversations with controllers, CFOs, and business leaders across industries to bring you practical, no-nonsense financial insights. None of this is financial advice—just what most founders wish someone had told them sooner.
See theAmerican Institute of CPAsfor more on finance leadership roles and standards.
