Prepping, in accounting terms, is preparing the client’s files for End of Year Annual Accounts, and it is one of the keys to the success of our system. It’s one of the core functions of the offshore team where it can cover up to 70% of the overall task.

Prepping Service

With Xero you have the client information at your fingertips, why not take advantage of this and start preparing for the End of Year Financials at your discretion rather than at your client’s request?

What do you get from Prepping?

  • In essence, once a client file has been prepped you get close to a set of drafted financial statements
  • You get a personalised client questionnaire
  • You get through your workflow much quicker and in a timely manner
  • You can cut turnaround times on jobs in half
  • You can reduce the number of open jobs by controlling the workflow coming in.

It adds up to more efficiency and less write-offs on jobs which equate to more margins on year-end work.

Case Study

At Findlay & Co we used prepping on all our end-of-year financial accounts. Just after the balance date we would create a list of client jobs for the year and set the priority of when we wanted or expected that work to come in.

We would then start the year end process on those jobs with our prepping team, this included the following items:

  • Bank reconciliations to Xero statement balance
  • Fixed Assets for new assets loaded into Xero and depreciation posted
  • GST details loaded in Workpaper
  • Wages reconciliation information loaded from IRD website
  • Creditor and Debtor Reconciliations
  • Loan and Hire Purchase Reconciliations completed where data available
  • Interest and Investment date loaded in workpaper
  • Repetitive journals and reversals completed
  • Comparative figure check completed
  • Set up Xero Year End Reports, Minutes, report mapping and report codes
  • Tax Return jobs loaded and links to Xero set up
  • Complete analytical review and then create a personalised questionnaire and list of missing information

We did an analysis of our jobs prepped, and on average, the prepping process took about 2 hours to do with the job well over 50% completed. The benefits we got as a result of prepping were enormous and completely changed our accounting firm for the better:

  1. Margins improved dramatically
  2. Turnaround time on year-end jobs went from more than 30 days to under 10 days
  3. Open jobs per staff member went from more than 10 jobs to less than 5 days
  4. Our senior accounting team loved the prepping process as they didn’t have to do the basics of the year-end process. It got to a stage where our senior accountants wouldn’t pick up a job unless it had been prepped.
  5. Clients were happy with the job turnaround and also the personalised client questionnaire as it meant a lot more to them so they completed it more accurately.

How Prepping Works with The Back Room

Initial ScopingWe look over the Xero files you want to be prepped and come back to you with a quotation

On AcceptanceWe get access to the data we need and systems you use plus a priority list of clients to complete

Prepping Prepping completed in a timely manner using our Prepping Checklist

Post Prepping Check-Up and Feedback – It is important to get regular feedback and follow up on post engagement


  • An estimated amount of NZ$200 for each Large Xero client with 15 to 25 employees, 10 to 20 new assets, 5 to 10 bank/loan accounts
  • An estimated amount of NZ$150 for each Medium Xero client with 1 to 14 employees, 5 to 9 new assets, 2 to 4 bank/loan accounts
  • An estimated amount of NZ$100 for each Small Xero client with Sole Trader Partnership/Trust no wages, low assets, and bank accounts

Introductory Offer 25% off for firms signing up before 31 May!

Minimum files per firm is 20, for larger entities that fall outside scope we can quote on a case by case basis, all prices will be in NZD and will only be available to New Zealand Accounting Firms. (Australia will be released in July). For more information see our White Paper on Prepping for Accountants.

Next Steps

Contact Wayne or Scott to inquire.