As a full-service accounting and payroll firm, Accounting Complete prides itself on offering comprehensive services to meet your business needs, including monthly bookkeeping, annual business tax returns, payroll management, and sales tax preparation. However, even with our all-inclusive approach, some tasks fall outside the scope of these agreed-upon services. These tasks, known as “out-of-scope” work, can lead to misunderstandings, unexpected costs, and inefficiencies if not managed properly.
In this blog post, we’ll define out-of-scope work, provide examples of tasks that often fall into this category, and offer tips to avoid confusion and keep your business running smoothly.
What Does “Out-of-Scope” Mean
Out-of-scope work refers to tasks or services not covered in the original agreement or contract between a client and service provider. In accounting and payroll, these requests go beyond the agreed-upon scope of services, requiring additional time, resources, or expertise.
Out-of-scope work isn’t necessarily a bad thing—it’s often part of evolving business needs. However, addressing it requires proper communication and documentation to ensure both parties are on the same page.
Examples of Out-of-Scope Work in Accounting
Even with a detailed service agreement, it’s common for additional needs to arise. Here are some examples of tasks that may be considered out of scope:
1. Forensic Accounting:
Investigating discrepancies or potential fraud in financial records is outside the realm of standard bookkeeping or tax preparation. This specialized service requires additional expertise and time.
2. Custom Financial Reports:
While we provide standard reporting as part of our bookkeeping services, requests for highly customized or non-standard reports may be out of scope.
3. On-Demand Financial Consultations:
Periodic consultations are often included in service agreements, but urgent, unscheduled requests for detailed financial advice may fall outside the agreed-upon terms.
4. Historical Cleanup Work:
If you come to us with months (or even years) of unorganized financial records, the initial cleanup work to bring your books up to date may not be part of ongoing bookkeeping services.
5. Audit Support:
Assisting with an IRS or state audit requires a level of preparation and involvement that isn’t part of standard tax return filing.
Why Out-of-Scope Work Matters
Failing to define and manage out-of-scope work can lead to:
– Budget Overruns: Additional work requires additional time and resources, possibly resulting in unforeseen costs.
– Project Delays: Shifting focus to unplanned tasks can impact timelines for other projects.
– Strained Relationships: Misaligned expectations can cause frustration for both the client and the service provider.
How to Avoid Out-of-Scope Work
To minimize surprises and ensure smooth collaboration, follow these best practices:
1. Clearly Define the Scope of Services:
From the start, ensure the service agreement is detailed and specific. It should outline exactly what services are included and any limitations or exclusions.
2. Communicate Regularly:
Maintain open lines of communication with your accounting firm. Regular check-ins allow you to address evolving needs and discuss how they might affect your service agreement.
3. Plan for Growth:
As your business grows, so will your accounting needs. Proactively discuss potential future requirements and update your agreement as necessary.
4. Request a Formal Proposal for Additional Work:
If new tasks arise, ask for a clear proposal outlining the additional work’s scope, cost, and timeline. This ensures transparency and helps you make informed decisions.
5. Educate Your Team:
Make sure everyone in your business understands the boundaries of the service agreement. This reduces the risk of unauthorized requests for out-of-scope work.
How Accounting Complete Handles Out-of-Scope Work
At Accounting Complete, we understand that every business is unique, and needs can change. If a request falls outside the scope of our existing agreement, we’ll:
– Discuss the task with you to ensure clarity.
– Provide a detailed proposal for the additional work, including costs and timelines.
– Proceed only after receiving your approval.
Our goal is to ensure that your business’s financial needs are met efficiently and transparently, without unexpected surprises.
Final Thoughts
Out-of-scope work doesn’t have to be a source of frustration. With clear communication, proper planning, and a proactive approach, you can ensure your accounting services remain aligned with your business needs.
If you’d like to learn more about how Accounting Complete can support your business—or if you have a specific need that might be outside the scope of your current services—contact us today. We’re here to help you every step of the way!
For some additional information and resources regarding out-of-scope services and how to combat those, visit these links:
Alignment With Your Greatest Potential
Don’t let scope creep lead you out of bounds