Background
Over the years I have been brought into many organizations, large and small, public and private, where the accounting function had drifted off course. The pattern is remarkably consistent. The team is working hard but lacks direction. Key internal control tasks have fallen behind. Reconciliations are incomplete, processes are not documented and accountability has faded.
In many cases this happens because of turnover at the leadership level. A CFO, Controller or senior accounting manager leaves and no one fully steps into their role to manage expectations or maintain structure. Over time, the accounting department becomes reactive rather than proactive.
As new team members join, they do their best to fill the gaps, often developing their own processes without understanding how or why the original procedures existed. Month-end closes begin to stretch longer and longer. Accounts start to drift out of balance. In short, the team is doing work but not necessarily the right work.
That is typically when I get the call.
Initial Assessment: Finding the Root Causes
When I arrive at a new client, my first step is to evaluate the overall internal control structure, not just individual tasks. I look at the accounting process as a whole, from transaction entry to financial reporting.
Smaller companies often lack the resources or headcount to fully segregate duties, so the focus shifts toward compensating controls and accountability. Larger organizations, particularly those subject to SOX compliance, require deeper reviews of policy adherence, approval hierarchies and documentation standards.
Across all company sizes, my goal is to determine why the control environment broke down. The root causes almost always fall into one or more of these categories:
- Leadership void with no one owning the close or control process
- Lack of defined expectations or documented procedures
- Staff turnover leading to loss of institutional knowledge
- No structured month-end close calendar or task list
- Account reconciliations being deferred indefinitely
- Weak or nonexistent review and approval processes
The most common underlying issue is that the accounting team has lost its structure.
Building Structure and Accountability
The foundation of strong internal controls is structure, a predictable process that ensures each task is completed, reviewed and documented on time.
I start by rebuilding the month-end close framework. This includes:
Creating a detailed close calendar with assigned responsibilities
Establishing deadlines for journal entries, reconciliations and reporting
Defining approval levels and documentation requirements
Implementing recurring review meetings to monitor progress
For smaller teams this process creates clarity and accountability. Everyone knows what is expected and when. For larger teams it reintroduces discipline and transparency that may have eroded over time.
Once structure is in place, I focus on reconciliations, the heartbeat of financial accuracy. Every key balance sheet account should be reconciled monthly with clear support and sign-off. I often find accounts that have not been reconciled for months or even years.
By breaking down the process into manageable steps, training the team and enforcing consistency, we turn reconciliations from a back-burner task into a regular high-priority deliverable.
Collaborative Evaluation and Incremental Improvement
I always emphasize that improving internal controls is not about blame, it is about progress. The best results come when the client’s accounting staff and leadership team are active partners in the process.
Together, we walk through workflows, approvals and handoffs to identify where control gaps exist. Sometimes these are small, easily fixable weaknesses, while other times they are deeper process failures that require complete redesigns. Where possible, I take an incremental approach by introducing improvements gradually so the team can adjust and sustain them. But not all companies have that luxury. When an audit or financing deadline is approaching, the improvements must be rapid and dramatic. In those cases I prioritize changes that immediately reduce risk while planning longer-term refinements for sustainability.
Addressing the Core Focus Areas
1. Financial Controls
The first area I target is always core financial controls including reconciliations, journal entries, cash management and segregation of duties. I verify that:
- Each balance sheet account is reconciled monthly
- Journal entries are reviewed and approved before posting
- Access to bank accounts and accounting systems is restricted appropriately
- Supporting documentation is attached to every transaction
Even small enhancements, such as requiring preparer and reviewer sign-offs, can significantly strengthen reliability and accountability.
2. Operational Controls
Next, I review operational controls tied to purchasing, inventory, payroll and IT access. These areas often intersect with other departments, making cross-functional collaboration essential. Examples include:
- Implementing purchase order and invoice approval workflows
- Reconciling inventory movements and investigating variances
- Reviewing payroll change approvals and access rights
- Working with IT to restrict system permissions
Improving operational controls often yields broader business benefits such as better cost visibility, reduced fraud risk and smoother audits.
3. Policy Documentation and Training
Without documentation, even good processes eventually fail. I help clients create or update their Accounting Policy and Procedure Manual, defining how each task should be performed, by whom and with what evidence of completion.
Equally important is training. Many accounting teams have the right intent but lack understanding of why controls matter. By explaining the reason behind each policy, I help teams internalize the purpose and maintain compliance long after my engagement ends.
4. Audit Readiness and Remediation
For companies facing external audits, particularly first-time audits or SOX reviews, documentation and consistency become nonnegotiable. I assist by:
- Preparing schedules and reconciliations in auditor-friendly formats
- Ensuring every balance can be traced back to source documentation
- Addressing control deficiencies noted in prior audits
- Implementing a repeatable documented audit process
This preparation not only satisfies auditors but also builds confidence within the organization’s leadership.
Results: From Firefighting to Focused Execution
When the internal control environment improves, the difference is visible and measurable. The accounting close becomes predictable, financial data becomes reliable and the team becomes confident.
Typical results include:
Reduced close time from weeks to days
Clean reconciliations across all balance sheet accounts
Documented procedures that sustain long-term accuracy
Improved audit outcomes and reduced findings
Higher morale among accounting staff who finally feel in control of their work
These transformations create stability, accuracy and trust, which are cornerstones of a high-performing finance function.
Key Takeaways
Improving internal controls is not about checking boxes. It is about restoring order, clarity and accountability to the finance organization.
Why Businesses Trust CFOBPO
At CFOBPO we help businesses move from reactive accounting to structured, proactive financial management. Whether your company needs a rapid turnaround or a steady path to improvement, the key is the same: structure, reconciliations and accountability. When those three elements align, internal controls stop being a burden and start being the framework for sustainable success.
CFOBPO specializes in helping companies strengthen internal controls, streamline their close process and improve financial visibility.