| Once you have selected an outsourced accounting | | | | on your server. |
| and bookkeeping vendor be prepared to invest some | | | | Pricing – I highly recommend fixed price |
| time in defining the relationship. At a minimum you | | | | contracts. If the outsourced accounting and |
| should have a written agreement defining the following: | | | | bookkeeping vendor is inefficient you should not pay |
| - The accounting statements that you expect and the | | | | for it. |
| time when you expect it. Whatever it is it must be | | | | - Payment terms – there should not be any |
| defined. | | | | upfront payment. You should pay the same way as |
| - You also need to define what quality means. Not all | | | | you pay your staff. |
| defects have equal consequences. We will cover | | | | - Term of contract – It should be |
| quality in accounting in another article in this series. | | | | month-to-month or at will on your part. If you are not |
| - The outsourced accounting and bookkeeping vendor | | | | satisfied with the outsourced accounting and |
| and you need to agree on a quality level. 100% | | | | bookkeeping vendor’s service, why should you |
| accuracy is unattainable. Even the most advanced | | | | pay for it? |
| companies like Toyota target one defect in a million. | | | | - What happens in a termination – the |
| Confusion on this point creates most of the difficulties | | | | outsourced accounting and bookkeeping vendor must |
| in an outsourced accounting relationship. | | | | agree to hand over all files to you and provide |
| - How will the outsourced accounting and bookkeeping | | | | reasonable assistance to the new vendor. |
| vendor work? There are several ways it can be | | | | - Money-back policy – the outsourced |
| done:a. You upload your data to the vendor’s | | | | accounting and bookkeeping vendor should have an |
| server, and they process it. They will email you the | | | | unconditional money-back guarantee for defective |
| reports.b. You transfer your data to the vendor by | | | | work. |
| email, fax, or secure file transfer. They keep the books | | | | - Confidentiality clause. |
| on their machine and send you the reports.c. You give | | | | Now that you have selected a vendor and arrived at |
| them remote access to your server and the | | | | a satisfactory contract, what is next? |
| outsourced accounting and bookkeeping vendor work | | | | |