# Post-Merger Integration Checklist: Merging Accounting Systems After an Acquisition
## Objectives of Financial Integration
- Preserve data integrity and audit trails
- Produce consolidated reporting quickly
- Maintain compliance during the transition period
- Minimize business disruption and cash leakage
## Consolidate the Chart of Accounts
### Mapping & Rationalization
- Map target accounts to the acquirer’s structure
- Eliminate duplicates and obsolete accounts
- Preserve historical comparability via mapping tables
### Controls
- Lock legacy structures post-cutover
- Document mapping logic and ownership
## Align Accounting Policies
### Revenue Recognition
- Identify policy differences (e.g., ASC 606 vs local GAAP)
- Harmonize performance obligation treatment and estimates
### Other Policies
- Capitalization thresholds, depreciation methods
- Inventory valuation (FIFO/LIFO/Weighted Avg)
- FX translation and intercompany pricing
## Systems & Data Migration
### Pre-Migration
- Inventory data sources (GL, subledgers, banks)
- Define data quality rules and acceptance criteria
- Dry-run migrations in a sandbox
### Cutover
- Freeze periods and data entry windows
- Reconcile opening balances to legacy closing balances
- Validate subledger-to-GL tie-outs
## Controls, Compliance, and Reporting
### Internal Controls
- Update process narratives and control matrices
- Reassign control ownership and approvers
### External Requirements
- Update tax registrations and payroll IDs
- Maintain separate statutory ledgers where required
- Ensure timely consolidated financials for lenders/board
## People & Operating Model
### Team Structure
- Define Day 1 RACI for close, AP/AR, and FP&A
- Determine shared services vs. outsourced transitional help
### Communication
- Publish a close calendar and integration playbook
- Weekly checkpoints with risk/issue logs
## Day 30/60/90 Milestones
- D30: Unified CoA, bank reconciliations aligned, first consolidated P&L
- D60: Policy harmonization complete, automated intercompany
- D90: System decommission plan executed, audit-ready documentation
## KPIs to Monitor
- Close cycle length, unreconciled items, intercompany aging
- One-time integration costs vs. synergy capture
## CTA
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