Document Management & WorkFlow in an Outsourced Accounting process

A well defined and structured approach should be involved for making the outsourcing accounting process work. This article describes the document management and work flow in an accounting outsourcing process.

Document Management

Accounting outsourcing normally is done in two ways, namely working on the back up files of the accounting package or through remote access of data and the accounting file.

In the first process i.e., working on the back up files, the source documents and the back-up copy of the accounting package are uploaded by the client on to the service provider’s server. The service provider then downloads the documents and post quality check and review; a back-up of the updated accounting file is uploaded back. The client then downloads the file and restores the file at their end.

The management of source-documents is done at two levels-

1) Folder and file management at server level

A well defined and layered folder and file structure should be followed for storing all the data. Atleast two copies of data are always maintained in a uniform way. The documents are grouped according to their transaction type- bank statements, accounts payable, accounts receivable etc. They are then searchable based on relevant key fields. For e.g. vendor invoice is indexed using invoice date, invoice amount, vendor name and invoice/reference number.

2) Tagging of the scanned/faxed documents to the specific transaction in the accounting file. This is done only for processes where the accounting software is accessed remotely. It is done by using specialized add-ons (like SourceLink) to software like QuickBooks.

In the second process i.e. remote access of the data and the accounting file, no accounting files are transferred. The source documents may be stored at Client/ASP’s server or at the service provider’s server. The service provider logs into the client server and accesses the software application (accounting package) running on the server and enters the data present in the source documents. The service provider has access to only the predefined areas of the accounting file.

A digital filing structure and document management structures stated above can be followed for the management of source documents.

Work-flow Management

An effective work-flow management should be implemented through a comprehensive multi-pronged approach. The starting point is the delivery team-structure which is the foundation of an effective service delivery platform. An effective team structure comprises of a manager, team-leaders and team-members (process associates). The scheduling and allocation of work within the team is done through discussions between the manager and team leaders. The team typically handles a specific set of clients/ a single large client. The onshore staff can communicate directly with the team leaders and of-course the delivery manager. The associate in turn performs the work for a specific set of end-clients and reports to the team leader.

Also, a well defined and clear segregation of clients and work responsibilities makes the work-flow management easier. The standard operating procedure (SOP) for the outsourced processes would also cover work-flow practices.

The work (task) allocation procedure (in remote access version) followed is-

• The US end contact point sends the email to the specific team-leader handling the client, with the list of instructions/clarifications.
• All work-related communication (if not emailed directly by US end to team leaders) is automatically forwarded to the team leader through a work-flow system (some-times client email a generic id like info@xyz.com)
• The work-flow system also automatically routes the mail to the relevant client folder in the mailing system of the team leader. This not only organizes all the emails client-wise but also eliminates the possibility of missed/not read emails.
• The team-leader receives the instructions and the files are stored and shared in the internal LAN server (only accessible to the delivery team working on the specific client). Usually the process associates are not provided email-access for data-security reasons.
• The process associate logs into the client server remotely and access the relevant folders housing the data and the accounting files. (All other folders would be inaccessible)
• Post completion of the work by the process associate, the team-leader would log-in and access the software application to review the work.
• Corrections (if any) are carried out by the team-leader.
• Clarifications are raised by the team-leader by directly emailing the specific contact point.
• All communication through email (attachments and text) should be archived for easy retrieval in future. This data is archived using a clear folder structure which helps in organizing and storing data. Clarifications/communications to client is through specific formats which capture all relevant detail clearly and standardizes communication styles.