When you think about communicating with your finance team—whether that’s your bookkeeper, CFO, tax preparer, or accountant—it’s easy to assume that once you’ve handed over the numbers, the rest is automatic.
But here’s what most business owners don’t realize: even small changes inside your business can create ripple effects in your financial records, compliance requirements, and reporting accuracy.
If you don’t keep your finance team in the loop, things can get messy fast. Missed deadlines, compliance gaps, inaccurate books, and tax headaches often stem from simple miscommunications.
Whether you’re a solo business owner or leading a growing team, your financial support crew can only work with the information they have. That’s why it’s crucial to keep them informed—before changes happen whenever possible.
Here’s a guide to the key updates your finance team always needs to know (and why they matter).
1. Opening a New Bank Account or Credit Card
Anytime you open a new bank account, savings account, or credit card—whether business or personal (if it’s used for business purposes)—your finance team needs to know immediately.
This matters because every new account impacts your bookkeeping. Your team will need access to download transactions or receive monthly statements to keep your records accurate. If they’re unaware, your financial reports will be incomplete, making cash flow tracking and tax prep far more stressful than they need to be.
Action: Notify your team right away and provide secure access or the first statement as soon as it’s available.
2. Hiring a New Employee
Bringing on a new employee isn’t just an HR matter—it’s a financial event.
Every new hire can trigger:
- New state compliance requirements. If the employee is in a new state, your business may need to register for that state’s payroll taxes, unemployment insurance, workers compensation insurance, and other compliance requirements.
- Payroll setup. Your finance team needs all employee details to set up accurate pay runs, tax withholding, posting payroll properly, and helping you be aware of your responsibilities on remitting taxes and other expenses like workers compensation.
- Reporting deadlines. States often have mandatory new hire reporting deadlines that kick in immediately.
- Sales tax collection. A new hire in a different state may also trigger sales tax nexus for taxable sales and services.
Action: Notify your finance team before the hire starts. Share the full name, address, start date, pay rate, and employment type (W-2 or contractor) to ensure everything is handled seamlessly.
3. Switching Payroll Providers
Moving to a new payroll provider can bring better features and customer service, but the transition isn’t always smooth if your finance team is left out.
Every payroll system handles wages, taxes, and reporting differently. If your bookkeeper and tax preparer don’t have immediate access to the new platform, you risk errors in wage posting, tax tracking, and compliance filings.
Action: As soon as you decide to switch providers, grant your finance team access to the new platform and confirm the exact switchover date. Make sure historical records from the old provider are also saved for reference.
4. Adding New Software or Financial Applications
Business growth often means new tools—whether it’s a fresh CRM, payment processor, or invoicing platform. But every app that touches your financials changes how your money flows.
Common examples include:
- New order entry or inventory software
- A new credit card processor like Stripe, Square, or PayPal
- New invoicing or subscription billing tools
- Any app that tracks payments, expenses, or receivables
If your finance team doesn’t know about these tools, transactions might get missed, double-counted, or posted incorrectly. And just as important as adding new systems is the process of closing out old ones. If a system is canceled before your team can retrieve necessary records—like W-2s or 1099s—it can create major headaches and additional costs to recover access.
Action: Whenever you add or cancel a finance-related app, provide your finance team with login credentials and explain how it will be used or sunset. This helps them set up or wrap up tracking properly from day one.
5. Adding (or Changing) Your Finance Team Members
It may seem obvious, but adding or changing financial professionals—like a new bookkeeper, tax preparer, financial advisor, or CFO—requires clear communication.
When multiple professionals work on your finances, they need to know who’s responsible for what. Without clear handoffs and introductions, gaps or duplication can happen. For example, if no one realizes a new tax strategy was recommended, you might miss out on savings or make avoidable mistakes.
Action: Introduce new finance professionals to your existing team, clarify everyone’s roles, and encourage open communication to keep things running smoothly.
6. Buying or Closing a Business
Acquiring or closing a business creates major ripple effects across your finances. Whether you’re purchasing assets, merging operations, or winding down a division, your finance team must be involved early.
- Bookkeeping: New accounts, systems, and financial histories need to be integrated—or closed out—accurately.
- Asset management: Selling off assets, adjusting inventory, and finalizing write-offs must be recorded properly.
- Tax implications: How you structure the deal (asset vs. stock purchase) can have major tax consequences.
- Compliance: New registrations or dissolutions may be required—especially if the business operates in a new state or industry.
Action: Share the purchase or closing documents, all relevant financial records, and details about affected accounts or systems with your finance team as soon as the change is planned.
7. Adding a Partner to Your Business
Adding a partner is a big step forward—but it changes your business’s financial and legal structure. Your finance team must understand the new dynamics to keep your books and tax filings compliant.
- Equity: Your team needs to update ownership percentages and capital accounts in your books.
- Tax filings: Partnerships introduce new reporting requirements, like issuing K-1s for tax purposes.
- Authority: Your bank accounts and financial documents may need updated signers or authorizations.
Action: Provide your finance team with the updated operating agreement, ownership details, and any banking changes right away to ensure a smooth transition.
Why This Matters
It’s tempting to assume your finance team will ask for what they need. But they don’t always know what’s happening behind the scenes of your business day to day. When you proactively keep them updated, you save yourself from headaches later—whether it’s fixing compliance errors, cleaning up the books, or scrambling at tax time.
Strong financial systems aren’t just about good software or skilled professionals. They’re built through clear, consistent communication and collaboration. Believe me, your team will thank you!
Want Financial Peace of Mind?
If you’re feeling unsure whether your finance team has what they need—or you’re worried something might be slipping through the cracks—the Financial Wellness Assessment (FWA) is designed to give you clarity.
We’ll review your full financial setup, identify risks or inefficiencies, and create a simple, actionable plan to keep your business financially healthy and compliant.
Spots are limited each month. Book an alignment call to find out if the FWA is the right next step for you.
