Document Management & Work Flow in an Outsourced Accounting Process

A well defined and structured approach should beapproach. The starting point is the delivery
involved for making the outsourcing accountingteam-structure which is the foundation of an effective
process work. This article describes the documentservice delivery platform. An effective team structure
management and work flow in an accountingcomprises of a manager, team-leaders and
outsourcing process.team-members (process associates). The scheduling
Document Managementand allocation of work within the team is done through
Accounting outsourcing normally is done in two ways,discussions between the manager and team leaders.
namely working on the back up files of the accountingThe team typically handles a specific set of clients/ a
package or through remote access of data and thesingle large client. The onshore staff can communicate
accounting file.directly with the team leaders and of-course the
In the first process i.e., working on the back up files, thedelivery manager. The associate in turn performs the
source documents and the back-up copy of thework for a specific set of end-clients and reports to
accounting package are uploaded by the client on tothe team leader.
the service provider's server. The service providerAlso, a well defined and clear segregation of clients
then downloads the documents and post quality checkand work responsibilities makes the work-flow
and review; a back-up of the updated accounting file ismanagement easier. The standard operating
uploaded back. The client then downloads the file andprocedure (SOP) for the outsourced processes would
restores the file at their end.also cover work-flow practices.
The management of source-documents is done atThe work (task) allocation procedure (in remote
two levels-access version) followed is-o The US end contact
1) Folder and file management at server levelpoint sends the email to the specific team-leader
A well defined and layered folder and file structurehandling the client, with the list of instructions
should be followed for storing all the data. At least twoclarifications.o All work-related communication (if not
copies of data are always maintained in a uniformemailed directly by US end to team leaders) is
way. The documents are grouped according to theirautomatically forwarded to the team leader through a
transaction type- bank statements, accounts payable,work-flow system (some-times client email a generic id
accounts receivable etc. They are then searchablelike )o The work-flow system also automatically routes
based on relevant key fields. For e.g. vendor invoice isthe mail to the relevant client folder in the mailing
indexed using invoice date, invoice amount, vendorsystem of the team leader. This not only organizes all
name and invoice/reference number.the emails client-wise but also eliminates the possibility
2) Tagging of the scanned/faxed documents to theof missed/not read emails.o The team-leader receives
specific transaction in the accounting file. This is donethe instructions and the files are stored and shared in
only for processes where the accounting software isthe internal LAN server (only accessible to the delivery
accessed remotely. It is done by using specializedteam working on the specific client). Usually the
add-ons (like SourceLink) to software like QuickBooks.process associates are not provided email-access for
In the second process i.e. remote access of the datadata-security reasons.o The process associate logs
and the accounting file, no accounting files areinto the client server remotely and access the relevant
transferred. The source documents may be stored atfolders housing the data and the accounting files. (All
Client/ASP's server or at the service provider's server.other folders would be inaccessible)o Post completion
The service provider logs into the client server andof the work by the process associate, the
accesses the software application (accountingteam-leader would log-in and access the software
package) running on the server and enters the dataapplication to review the work.o Corrections (if any)
present in the source documents. The service providerare carried out by the team-leader.o Clarifications are
has access to only the predefined areas of theraised by the team-leader by directly emailing the
accounting file.specific contact point.o All communication through email
A digital filing structure and document management(attachments and text) should be archived for easy
structures stated above can be followed for theretrieval in future. This data is archived using a clear
management of source documents.folder structure which helps in organizing and storing
Work-flow Managementdata. Clarifications/communications to client is through
An effective work-flow management should bespecific formats which capture all relevant detail clearly
implemented through a comprehensive multi-prongedand standardizes communication styles.