• Personal Taxes
  • Bookkeeping
  • Accounting
  • Payroll
  • Business Taxes

How To Avoid Agreement Disputes with Contractors

 

Many business owners can avoid disagreements if people take the time to set, understand, and adhere to the “scope of services.”  What is the scope of services?  The scope of services explains the requested services and the outcome or deliverable.  The Scope of Services is an essential part of the proposal, and the service agreement confirms both parties understand.  You can not change this agreement without proper notice and a discussion.  If you do, you will be upset.

 Depending on the type of contractor you hire, your expectations will be different.  Each type of contractor will deliver different services just as different retailers deliver different kinds of products.  Learn more about the top 3 categories of contractors in this blog:  “What To Do When You Hire A Contractor.”

If you need someone to train you and share their professional knowledge with you, hire a professional contractor.  The deliverable here would be to apply their professional training and experience in this field.

A professional service provider applies our knowledge, experience, and skills to your benefit.

  • We fix issues applied from people without professional training.
  • We build a correct plan.
  • We train you on the correct processes.
  • We give you a plan of action for continuing forward.
  • We help you update, maintain, and monitor the process.

Many people hire a professional accountant but don’t understand what we do, and often their expectations are not met.  Why?  Many people do not realize that accounting is more than bookkeeping, so they think professional accountants make things harder than they have to be so that we can earn money.  Many people will take your money and enter whatever the untrained business person what’s entered.  However, I will not do this because we have to follow procedures and compliance.  Combining our accounting knowledge with technical knowledge of how this works in your software is essential and will save us both time in the long run.

Most people hit an easy button by deleting steps or purchasing software without understanding accounting principles, and they think the software will work without this accounting knowledge.  Accounting does not have an easy button.  Using accounting software without accounting knowledge will create incorrect accounting processes and make your software reporting inaccurate.  People waste money jumping software to software because they think the software is the problem.  Understanding the purpose of accounting software and seeking training from qualified accounting professions with experience in your software will help you in the long run.

Terms of Services Image 2

If a client needs financial statements or bank reconciliations, we have to follow a procedure to create accurate information.  Your scope of service will list the services we need to perform to give you the deliverable.  The pricing would include this deliverable, and when you try to add services, you will change your price.  I recommend being honest upfront about the history of your file and your level of understanding.  You will find that yes, the price is higher than you want to pay, but your file will be correct.  A correct file will benefit you in the future.

-Author: Y. Michelle Coard, B.A.S. and A.A.S in Accounting

Training Tutorial Coming Soon


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