Before the first file, an offshore bookkeeper needs five things from the accounting firm: a signed agreement covering confidentiality and scope, the right level of access to each client's ledger, the firm's written conventions for how books are kept, the prior-period workpapers for every client handed over, and the client notices or consents the firm's own rules require. A named contact on each side, with an agreed way to raise questions, completes the list. Most of the problems in the first two months of an offshore engagement trace back to one of these being missing, and almost all of them are cheaper to sort out before day one than during the first close.
This is written from the provider's side: what we ask for, and why each item matters.
1. Agreement, scope and confidentiality
- A mutual non-disclosure agreement, signed before any client data is shared. It should cover the provider's staff individually, not only the provider's business.
- A written scope for each client, or a statement of work for the engagement. It should cover which accounts are reconciled, how often, the month-end deliverables, what is out of scope, and the deadline for each.
- Data handling terms. Where work is performed, whether data may be downloaded or stored locally, which tools are used, how access is removed when someone leaves, and what happens to data at the end of the engagement.
- Professional standards. If the firm is a US CPA firm, the AICPA Code's interpretations on third-party service providers require the firm to supervise the provider's work and to make sure the provider has the necessary qualifications. The provider should expect to be asked how it meets those requirements.
2. Access, at the right level
Access should be specific to each person, specific to each client, and only as broad as the work needs.
- QuickBooks Online. A firm working through QuickBooks Online Accountant is normally invited through Settings > Manage users > Accounting firms. The firm can then give its offshore team members access to the clients they work on, rather than sharing a login. Where the provider only needs to work on a few clients, a standard user with limited rights may be enough. QuickBooks limits how many accounting firms can be invited to a company, depending on the plan, so check that before planning access.
- Zoho Books. Invite each team member as a user in each organisation, with a role that matches the scope. Some editions include a predefined Accountant role; otherwise create a custom role.
- Banks and payment systems. Prefer read-only access or statement downloads. Payment approval rights should stay with the firm or the client. A provider that can both record and release payments is a control weakness, whatever the level of trust.
- Two-factor authentication on every account, and no shared credentials, ever. If a login has to be shared to make the work possible, the access design is wrong.
- Supporting systems. Document storage, receipts tools, payroll reports and practice management software: list what the provider needs to read and what it needs to write to.
3. Your conventions, written down
Every firm keeps books in its own way. An in-house team learns that by sitting beside a senior. An offshore team needs it in writing.
- Chart of accounts conventions. Which accounts to use for common items, how classes, locations or tags are used, and the names of clearing and suspense accounts.
- Coding rules for recurring vendors and customers. A list of the twenty or thirty most common payees and how each is coded saves more time than any other single document.
- Policies. Capitalisation threshold, prepayment and accrual policy, the materiality level for accruals, and how owner transactions are treated.
- The month-end checklist the firm uses, and the format of the close package it expects back.
- Client-specific notes. Anything unusual about a client, such as related-party loans, a seasonal business or a client who pays personal expenses from the business account, should be written down before the provider meets it in a bank feed.
4. Prior-period workpapers
The provider starts from where the last person stopped, so it needs to know where that was.
- the closing trial balance for the last completed period;
- the last bank and card reconciliations, with their reports;
- the open items list: uncleared transactions, unresolved suspense items, known errors;
- the prior year's adjusting entries and, where relevant, the filed tax return, so opening balances can be agreed;
- payroll, sales tax and other filing histories, if the provider will prepare or support those.
If any of these do not exist, say so at the start. A file that needs cleanup is a different engagement from one that needs monthly maintenance, and both sides should know which they are starting.
5. Client notices and consents
The firm's obligations to its own clients do not change because the work is done offshore. Three areas commonly apply.
- Professional rules on third-party providers. For a US CPA firm, the AICPA Code requires the firm to inform the client, preferably in writing, before confidential client information is shared with a third-party service provider. Many firms add this to their engagement letter.
- Section 7216 consent for tax return information. Before a US firm discloses tax return information to a preparer located outside the United States, it must generally obtain the taxpayer's signed consent under section 7216 of the Internal Revenue Code and the regulations under it. For individual (Form 1040) taxpayers, the consent must follow the format set out in Rev. Proc. 2013-14. There are additional restrictions on disclosing Social Security numbers outside the US. This is a requirement on the US firm, and its exact application depends on the work involved. The firm should confirm it with its own US tax adviser.
- Data protection law. Firms in the UK or EU transferring personal data to a provider in India need a lawful transfer mechanism under their data protection law, typically standard contractual clauses or their UK equivalent, together with a transfer risk assessment. Treat this as part of the agreement in item 1.
6. People and rhythm
- One point of contact on each side, with a named backup.
- An agreed question channel, such as a shared question log or a ticketing board. Avoid scattered emails. Questions should be batched and answered on a set schedule.
- The working-hours overlap and when each side is expected to respond.
- An escalation path for anything that cannot wait, such as a suspected fraud, a missing deposit or a deadline at risk.
Start with one file
Even with everything above in place, start with one client file. Run one full month: reconciliations, the close package, the question log. Review the output against your own standard. Correct the conventions document wherever the provider guessed. Then add clients in groups. The first file is where the conventions are tested, and fixing them on one client costs far less than fixing them on twenty.
Where this fits
The next stage is running the close itself across the time difference. See month-end close when your bookkeeper is ten hours ahead.
Wissen Solutions provides white-label back-office support to accounting firms in the US, UK and other markets through our QuickBooks Online and offshore accounting services. Engagements begin with a mutual NDA and a review of one file.
Sources (checked 24 October 2026)
- Intuit: Invite an accountant to QuickBooks Online
- Journal of Accountancy: Working with third-party experts (November 2022): AICPA ET 1.150.040, 1.300.040, 1.700.040
- Virginia Society of CPAs: Offshoring risk management: section 7216 consent, Rev. Proc. 2013-14, SSN restriction
- IRS: Rev. Proc. 2013-14