Employee Turnover Happens – Is Your Finance Department Ready?

by Jill A. Shaw, CPA, Managing Partner

Posted on September 16, 2026

Planning an audit requires that auditors assess risks such as misstatements, errors and fraud in the financial statements. While risks certainly vary from entity to entity, one area always considered is continuity of staffing. Employee turnover can cause serious disruption to internal controls if proper planning is not in place. Consider these proactive approaches below to ensure staffing changes do not create unnecessary strains in your organization.

Document Processes: Documentation is what allows all the institutional knowledge to transfer from person to person. Today, processes can change quickly, so once they are documented, don’t forget to update them on a regular basis. This is especially important for routine processes such as reconciliations, payroll processing, and year-end closing. Another thing to consider is where this documentation will be stored. It is important to keep documented procedures in a centralized, accessible location. Also, consider the use of technology in your documentation. There are many apps out there that will help capture a process click by click, so the next person can easily and efficiently follow along.

Cross-Train: Turnover is sometimes planned because of retirements or can be more abrupt. Regardless of the reason, cross-training can be a valuable tool in ensuring that no single person is a bottleneck for critical operations. In addition to mitigating adverse effects from turnover, cross-training has many other benefits. Advantages include promotion of career growth, identifying internal talent, and saving on recruiting. There is a familiar saying that it costs 5 to 10 times more to acquire a new customer than to retain an existing one, and the same is true for employees.

Leverage Automation: Advances in technology have made it easier than ever to leverage automation in business transactions. Where leverage is concerned, consider starting with routine tools such as journal entries, reconciliations, and reporting. This automation will help ensure that operations continue seamlessly even when there are gaps in staffing.

Employee turnover is inevitable, which means how your organization plans for that turnover is critical. From an audit perspective, organizations with a thoughtful plan are often better positioned to maintain strong internal controls and avoid unnecessary interruptions. Taking time now to assess turnover-related risks can help your finance department remain prepared, flexible, and resilient.