Selecting An Outsourced Accounting And Bookkeeping Vendor
What should you look for?
1. Relationship with an outsourced accounting and bookkeeping vendor is a long-term one.
2. The work must be beyond reproach.
3. Local presence.
4. Workflow process.
5. Cost.
Just like you do not want to change your accountant every year, you do not want to change your outsourced accounting and bookkeeping vendor every year either. So you need to look at whether the relationship is workable.
Past behavior is the best guide to future behavior. So look at the principals’ business experience and history. Have they been successful in the present or previous efforts? Are they honorable people who you can work with?
The quality of internal accounting and bookkeeping process is seldom scrutinized in a small company until a catastrophe develops. When dealing with an outsourced accounting and bookkeeping vendor, it is critical that you establish quality metrics upfront. If a vendor will not agree to a quality standard, you should not work with them.
Since most of the outsourced accounting and bookkeeping vendors are located in India, it is preferable if you can obtain support from the US. There are companies like SurePrep and Indevia Accounting, which are US companies with Indian subsidiaries.
The outsourced accounting and bookkeeping vendor must have a way of defining your workflow process efficiently and with the least amount of involvement for you. The workflow process defines the source documents that you must provide and the output that the Outsourced accounting and bookkeeping vendor will provide..
Last but not least, you need to consider cost. If the vendors are not close on the first four criteria, a cost comparison will be meaningless. Your preferred vendor should give you an acceptable cost saving, but does not need to be the lowest bidder.
Once you have identified an acceptable vendor, ask them for at least three references and talk to them. This is probably the most important step in the process.
Dev Purkayastha (CEO, Indevia Accounting, Inc.) holds an M.B.A. from Harvard Business School and is a qualified Chartered Accountant. In addition to his accounting experience, he has over 25 years of experience in the venture capital business as well as in investing in public enterprises. For more information on outsource accounting & bookkeeping services please visit:www.indevia.com
Click the XML Icon Above to Receive Business Articles Via RSS!
