guide: how to switch to outsourced accounting

GuideHow to Make the

switchOutsourcedAccounting

to

How long will it take?

Plan on 2 - 4 weeksif your books are up-to-date.

It could take longer ifyouʼre behind on your books.

10Things youʼll need

to get

started

1. Make a LIST of things that you love/hateabout your accounting.

If you have a sense of whatʼs frustrating you about your current accounting system,you can point that out to your new accountants before they get started.

Thereʼs nothing worse than realizing that the original problem with your old accounting model is still present six months into your new process.

2. Identify your accounting goals.

What do you hope to gain from their expertise? Are you looking for a betterreporting system? A better way to track cash or profits?

If you focus on your most valuable goals first, you can manage theexpectations gap.

3. Backup your accounting software before you start.

Itʼs a good idea to backup your software even if youʼre not switching accountingservices yet.

If you make a switch, and then decide later that itʼs not a good fit, then you canreturn to your backup and restore your information.

4. Create access to the accounting software.

Your new outsourced accounting team is going to need access to your software.We usually get a copy of our clientʼs QuickBooks files and host them on oursecure server for access via the Internet.

Or your new outsourced accountant could have you create a VPN, or use a servicelike logmein.com.

5. Opt for “view only” access at first.

Ask your banker and credit card companies for login credentials that are “view only.”

This keeps you protected as you learn how to work together.

If it doesnʼt work out, you can simply shut off the access point.

6. Review your aging reports.

There are usually invoices or bills in the system that havenʼt been applied correctlyover the years.

Print out these aging tables and write notes on which accounts need to beremoved or adjusted.

7. Complete the paperwork.

Your new accountants will likely have a proposal for you to sign along with someadditional paperwork to fill out.

Donʼt put this off until later. If you do, youʼll end up tying your accountantʼs hands.

8. Get a copy of your last tax return and sales tax return.

This will help your accountants tie your records to the last filings you sent tothe IRS and local tax agencies.

9. Think software.

Set your new accountant up on all necessary software systems like time tracker,billing modules, etc.

10. Make a list of memorized bills.

Take the time to think through all of the expenses that need to be paid for each month.

Make sure your new accountant knows who the vendors are, when payments aredue and how much should be paid.

How to Keep theBusiness Running

During Setup

Hire the outsourced accounting team during a down time.

Make a plan before you start: create a road map with them with specific outcomesattached to actual dates.

Identify a champion on your team that will work directly with the outsourcedaccounting team.

Get your accounting team up to speed on the essentials quickly: start them onreconciling cash and invoicing customers first.