Key takeaways
- When the head of accounting is absent, payment approvals stall, closes are delayed, the team becomes unsettled and controls get bypassed.
- In the first few days, put responsibilities and deputies in writing and check bank authorisations, approval limits and the four-eyes principle.
- Review the closing calendar, go through open items and document knowledge while the information is still to hand.
- Internal cover only works with sufficient expertise and relief from day-to-day work; otherwise the person who sets priorities is missing.
Contents
When the head of accounting is unexpectedly absent, day-to-day business often carries on for a while – until the first close comes round, approvals are missing or queries from auditors and banks go unanswered. Acting early prevents a vacancy from turning into a problem with payments or the financial close.
01The biggest risks
- Payment approvals and payment runs stall – suppliers are kept waiting and early-payment discounts are lost.
- Month-end and year-end closes are delayed; reporting to management, the group or the bank is missing.
- The team is unsettled, responsibilities become blurred and knowledge is lost.
- Controls such as the four-eyes principle are bypassed for lack of time.
02Immediate steps in the first few days
Who takes over approvals, reconciliations and queries on an acting basis? Put deputy arrangements in writing.
Check bank authorisations, approval limits and the four-eyes principle; prepare the next payment run with care.
Which deadlines are coming up – month-end close, group reporting, VAT, annual accounts? What is critical?
Payables, receivables and unreconciled accounts: where is a backlog building up?
Keep them informed transparently, set priorities and name contacts. A team that knows where it stands keeps working.
Document access rights, ongoing issues and special cases while the information is still to hand.
Practical tip
Document access, ongoing issues and special cases straight away, while the information is still to hand.
03Internal solution or Interim Head of Accounting?
An internal deputy can work if someone has the technical depth and is relieved of day-to-day tasks. Often, however, the team is already at full stretch – and then the very person who sets priorities and makes decisions is missing. An Interim Head of Accounting takes over leadership without a long induction, keeps day-to-day business stable, supports the close and, in parallel, brings structure to whatever has been left undone.
04What matters in an interim solution
- Experience with your ERP system or comparable system landscapes.
- Experience in closing work under German GAAP (HGB) and, where relevant, IFRS.
- Leadership experience – both functional and line management.
- A clear focus on the handover to the permanent head.
05In practice
At Live Nation Entertainment, Loretta Schneiders, as Interim Team Lead Accounting, led a team of 20 people across accounts receivable, accounts payable and artist accounting during a transformation, reorganised processes and deputised for the Head of Accounting on escalations.
Loretta Schneiders
Senior interim finance leadership with an international outlook. Clarity in numbers. Structure in processes. Leadership with impact.