Managed close-as-a-service · what we do
How Ledger Summit delivers this engagement
Each engagement runs the same Ledger Summit transition model: discover the current workflow, prove value with a controlled pilot, design controls and evidence packs, integrate with your stack, and stand up managed support so the gains compound.
What managed close-as-a-service actually is
We run your monthly close for you. Not a checklist tool — actual accounting operations: reconciliations, journal entries, intercompany matching, accruals, deferrals, variance review, management reporting, and an evidence pack your auditor can walk. Tool Box AI handles the workflow and controls; our team handles the judgment.
Think of it as a fractional close department. You keep the controller (or hire ours fractionally — see fractional controller services), and we handle the production line. The model fits companies in the $10M–$200M revenue band that want a 5-business-day close, an audit-ready evidence pack each cycle, and predictable monthly cost — without staffing a 4–6 person close team.
What's included every month
- All bank, credit card, and merchant account reconciliations
- AP and AR sub-ledger reconciliations and exception resolution
- Intercompany matching and elimination entries (multi-entity)
- Recurring journal entries: accruals, prepaids, depreciation, payroll
- Fixed-asset roll-forward and depreciation schedule maintenance
- Variance and flux analysis with controller-grade commentary
- Management pack: P&L, balance sheet, cash flow, KPI dashboard
- Evidence pack: timestamped logs, approvals, source attachments
- Lender and board reporting (if applicable)
- PBC list assembly when your audit kicks off
- Quarterly close optimization review with the controller
What's not included (where the controller stays in the loop)
Managed close handles the production work. Judgment, policy, and external relationships stay with the controller — yours or ours fractionally. Specifically:
- Accounting policy decisions (revenue, lease, impairment, going-concern)
- Significant estimates and accounting judgments
- Board commentary and management discussion
- Auditor relationship, fieldwork sign-off, and management representations
- Tax provision review (we coordinate with your tax provider)
- External lender or covenant relationships
- Hiring, performance, and operational decisions
How it works week by week
| Day of close | What happens | Owner |
|---|
| Last week of month (week 0) | Cutoff prep, recurring entries staged, AR/AP cleanup, supporting schedule refresh | Ledger Summit + client AP/AR |
| Day 1–2 | Bank/CC reconciliations, AP/AR sub-ledger tie-out, intercompany matching | Ledger Summit |
| Day 3–4 | Accruals, deferrals, depreciation, payroll, fixed-asset roll-forward | Ledger Summit |
| Day 5 | Variance review, controller sign-off, evidence pack assembly | Ledger Summit + controller |
| Day 6–7 | Management pack delivered, board/lender reports issued | Ledger Summit + controller |
Industry-specific scope
The base scope above covers most companies. Industry-specific layers add on as needed.
| Industry | What's added on top |
|---|
| SaaS / subscription | ASC 606 revenue recognition, deferred revenue waterfall, contract modification handling |
| Multi-entity holdco | Intercompany matching, eliminations, FX revaluation, CTA tracking |
| Light manufacturing | Inventory cost-flow accounting, WIP roll-forward, cycle-count reconciliation |
| Ecommerce / retail | Multi-channel reconciliation, sales-tax (Avalara) tie-out, gross-vs-net merchant accounting |
| Professional services | Project accounting, WIP, unbilled receivables, time-and-billing reconciliation |
| Healthcare services | Payer-mix reconciliation, contractual allowance roll-forward, multi-location consolidation |
| Real estate / construction | WIP, percentage-of-completion, AIA billing reconciliation, retainage tracking |
Onboarding playbook — first 60–90 days
- Week 1: Discovery. Walk every existing close workflow, document SOPs, identify control gaps, baseline the current cycle time and pain points.
- Week 2–3: Design. Configure Tool Box AI workflow, design the close calendar, build evidence-pack templates, set reviewer roles, document accounting policies in current state.
- Week 4–6: Stand-up. Connect to GL and sub-systems, build reconciliation schedules, test recurring JE templates, dry-run the close calendar against last month's data.
- Week 7–10: Parallel run. Run our close cycle alongside the client's existing process for one full month. Investigate every variance to zero. Auditor walk-through of the new evidence pack.
- Week 11+: Cutover. First production close fully run by us. Daily standups for the first cycle. Hypercare for 30 days post-cutover.
Systems we operate inside
We work inside your existing stack. No tool migrations are required as part of onboarding — though we'll surface any system limitations during discovery and recommend changes if warranted.
| Category | Supported |
|---|
| Primary GLs | QuickBooks Online (Advanced/Enterprise), Xero, NetSuite, Sage Intacct, Deltek Costpoint |
| AP automation | Bill (BILL.com), Ramp, Brex, Tipalti, Stampli, Airbase |
| Expense / corp card | Expensify, Concur, Ramp, Brex |
| Payroll / HRIS | Gusto, Rippling, ADP, Paychex, BambooHR, Justworks |
| CRM / billing | Salesforce, HubSpot, Stripe, Chargebee, Recurly, Maxio |
| Banking | Plaid-supported banks, direct bank feeds, Mercury |
| Ecommerce | Shopify, Amazon Seller, BigCommerce, WooCommerce |
| Tax / compliance | Avalara, TaxJar, Anrok |
Pricing tiers
| Tier | For | Includes |
|---|
| Pilot | Single-entity, <$25M revenue | Full close ops, monthly management pack, evidence pack |
| Standard | 2–4 entities, $25M–$100M revenue | Pilot + intercompany, lender reporting, FP&A review |
| Enterprise | 5+ entities, $100M+ revenue | Standard + multi-currency, project accounting, audit support |
Fixed monthly fee. Quoted after a 30-minute scoping call. No per-transaction or per-reconciliation fees. Industry-specific add-ons (rev-rec, GovCon, multi-currency) priced on top of the base tier.
Service levels
- Close cycle time: 5 business days from period close to management pack delivery (Standard tier); 7 days for Enterprise tier with multi-currency consolidation
- Evidence pack delivery: Same day as close sign-off
- Inquiry response: Same business day during business hours; next business day overnight
- Audit fieldwork support: Lead support response within 4 business hours during fieldwork periods
- Cycle escalation: Controller-level escalation if any close cycle is at risk of missing the SLA
- Quarterly close review: Standing 60-minute review with the controller to surface optimization opportunities
When this works (and when it doesn't)
| Strong fit | Not a fit |
|---|
| PE portco that needs a 5-day close immediately | Companies wanting their team to do the work, just better |
| Founder-led $10–100M business without a controller | Heavily regulated industries needing in-house staff |
| Multi-entity teams losing nights/weekends to close | Teams using exotic ERPs we don't yet support |
| Teams transitioning between controllers | Sub-$5M revenue (a CAS firm is more cost-effective) |
| Audit-readiness needed in 6 months for refinance / M&A | Public companies (need in-house SOX team) |
| Companies that want fixed-fee predictability | Companies preferring usage-based pricing models |
Off-boarding and transition back to in-house
Some clients eventually decide to bring close back in-house — typically when they hit the scale where a 4-person close team makes sense (~$200M+ revenue) or when they're heading toward IPO and want full SOX-readiness staffing. We've designed off-boarding to be structured and clean.
- SOPs for every workflow are maintained continuously, so they're current at off-boarding
- 60-day structured transition: knowledge transfer, parallel run, hand-off cycle
- System access and configurations transfer cleanly — Tool Box AI workflow can stay or be retired
- Final close and evidence pack delivered through transition
- 30-day post-transition advisory available on retainer
- No lock-in clauses; written 60-day notice
Frequently asked questions
Do you replace our controller?
No. We replace the production work behind the controller — reconciliations, JEs, schedules, evidence packs. The controller (yours or ours, fractionally) keeps judgment and review. Most teams find this is the right division of labor.
How fast can you take over?
Pilot teams typically have us running their close 30–45 days after the scoping call. Standard tier: 60 days. Enterprise: 75–90 days. We do a parallel run for the first month so nothing breaks.
What systems do you support?
QuickBooks Online (Advanced/Enterprise), Xero, NetSuite, Sage Intacct, and Costpoint as primary GLs. We integrate with Bill, Ramp, Tipalti, Stampli, Stripe, Shopify, Salesforce, HubSpot, and most major payroll and HRIS tools.
Will my auditor be okay with this?
Yes — and they're usually relieved. We deliver evidence packs your auditor can walk: timestamped logs, approval routing, attached source data, controls matrix. PCAOB amendments now expect this kind of documentation; we build it in.
Can we move off the service later?
Yes. We document every workflow as we go, so handing back to an in-house team is a structured transition (typically 60 days). No lock-in clauses; written 60-day notice.
What happens if we have a special transaction (acquisition, spin-off, accounting standard adoption)?
Special transactions are scoped separately. We coordinate with your controller on opening-balance work for acquisitions, conformity adjustments for accounting standard adoption (ASC 842, ASC 326, etc.), or carve-out accounting for spin-offs. Pricing is project-based.
How do you handle our existing PBC list when audit kicks off?
The evidence pack is most of the PBC list already. We assemble the remaining items — typically representation letters, certain confirmations, and policy memos — in the first week of fieldwork and stay engaged through the audit cycle.
What if our team prefers handling some workflows themselves?
We can scope partial — e.g. we run reconciliations and you handle accruals, or we run sub-ledgers and you handle GL. We'll be honest if a partial scope creates more friction than it removes.
How does this differ from a CAS firm or outsourced bookkeeper?
CAS firms typically handle bookkeeping (transaction-level data entry and basic reconciliation). Managed close handles operational accounting (close cycle, JEs, intercompany, evidence, controls). The line is roughly the difference between data entry and accounting operations. CAS firms work for sub-$5M companies; managed close works at $10M–$200M.
Are there any data-residency or security constraints we should know?
Tool Box AI runs in your environment for clients with CMMC, HIPAA, or strict data-residency requirements. For most clients we run a SOC 2-aligned shared environment. Discovery covers this in the first week.
What happens if our cycle has an emergency between closes?
Off-cycle work — significant transactions, audit responses, board prep — is scoped on a per-engagement basis. Standing weekly office hours with the senior accountant cover routine ad-hoc work.
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