These FiscalWorks AP/AR Management Services Terms (“AP/AR terms”) apply to our AP/AR Management Services and operate in addition to the terms of the FiscalWorks Subscription Agreement. If there is an express conflict between these AP/AR terms and the FiscalWorks Subscription Agreement, these AP/AR terms shall control. Terms defined in the FiscalWorks Subscription Agreement and used in these AP/AR terms without definition have the meaning given to them in the FiscalWorks Subscription Agreement.

1. AP/AR Management Services

1.1 Accounts Payable (AP) Services

•  Bill Processing: We will establish a dedicated digital channel (such as a specific email address or document upload portal) for you to submit vendor invoices. Our team will monitor this channel, retrieve submitted bills, and perform data entry to record key details—including vendor name, invoice number, issue date, due date, and amount—into your accounting software. A digital copy of the source invoice will be attached to the transaction record for reference.
• Approval Workflow: Once a bill is entered, it will be routed electronically to your designated approver(s) as defined during onboarding. The approver will receive a notification to review the bill details and the attached invoice within the accounting system or a related third-party application. Payments will only be scheduled for execution after we receive explicit digital approval through this system.
• Payment Execution: Following your final approval, we will schedule the payment for its due date or another date specified by you. The payment will be initiated from your designated bank account or credit card via the agreed-upon method (e.g., ACH transfer, third-party payment service, or mailing a physical check). We act as the payment initiator; the actual settlement of funds is handled by the respective financial institutions.
• Vendor Record Management: We will maintain a centralized record for each of your vendors within the accounting system. This includes contact information, payment terms, and, where provided by you, tax identification information (such as a W-9). This organized record ensures accurate payment processing and supports year-end compliance activities like 1099 reporting.
• Reporting: On a regular schedule, typically as part of your monthly financial reporting package, we will provide you with an Accounts Payable Aging report. This report details all outstanding vendor bills, categorized by how long they have been unpaid, to provide you with a clear view of your current and upcoming liabilities.
  
  

1.2 Accounts Receivable (AR) Servicecs

• Invoice Generation: You will provide us with all necessary billing details for your customers, such as services rendered, products sold, rates, and quantities, through an agreed-upon submission process. We will use this information to generate professional, accurate invoices from your accounting system and distribute them to your customers via email or another specified method.
• Payment Application: We will monitor your designated bank deposit accounts or payment processor accounts for incoming customer payments. Upon receipt of funds, we will accurately record the payment in your accounting system and apply it to the corresponding open customer invoice(s), ensuring your receivable balances are up-to-date.
• Collections Support: Based on the AR aging report and your specific, pre-approved collections policy (e.g., “send first reminder at 15 days past due”), we will send standardized reminder emails to customers with outstanding invoices. These communications are professional and courteous in tone. This service is limited to email reminders and does not include making phone calls, negotiating payment plans, or engaging in any activities that would be classified as formal debt collection.
• Customer Record Management (CRM): We will ensure that each of your customers has an organized record within your accounting system, containing their contact information and a complete history of all invoices and payments. This provides a clear and accessible audit trail for all customer transactions and facilitates ongoing relationship management.
• Reporting: As part of your regular financial reporting, we will provide you with an Accounts Receivable Aging report. This report details all unpaid customer invoices, categorized by how long they have been outstanding. It serves as a critical tool for you to monitor cash flow, assess customer payment behavior, and guide your collections strategy.

2. Responsibilities

2.1 Client Responsibilities

• You are responsible for providing all vendor bills, customer billing information, and related data in an accurate and timely manner.
• You are responsible for reviewing all vendor bills for accuracy, legitimacy, and proper coding.
• You are responsible for approving all payments prior to their execution. FiscalWorks will not execute any payment without your explicit authorization through the agreed-upon approval workflow.
• You are responsible for maintaining sufficient funds in any bank account used for payment execution.
• You are responsible for establishing and communicating to us your policies regarding customer invoicing and follow-up on overdue accounts.
• You are responsible for handling all direct vendor or customer disputes.

2.2 Our Responsibilities

• We will process all AP and AR transactions according to your timely instructions and approvals.
• We will follow the agreed-upon workflows for approvals and processing.
• We will maintain accurate records of all transactions processed within your accounting system.
• We will safeguard any financial account information you provide to us for the purpose of executing payments.

3. Fees

Our fees for AP/AR Services are set forth in the Order Form. Fees may be structured as a recurring base fee, a per-transaction (per-bill or per-invoice) fee, or a combination thereof. Fees are exclusive of taxes, which you are responsible for, if applicable.

4. Authorization and Protections

4.1 Authorization

You hereby authorize FiscalWorks to act as your agent for the limited purposes of processing AP/AR transactions as described herein, including contacting your vendors and customers for administrative matters (e.g., confirming payment details) and initiating payments from your designated accounts upon your approval.

4.2 Limited Warranty

We warrant that the AP/AR Services will be performed in a professional and workmanlike manner. Any warranty claim under these AP/AR terms must be made by you in writing within thirty (30) days after performance of the nonconforming AP/AR Service. Our sole obligation and your exclusive remedy for a breach of this warranty is to reperform the nonconforming service or, at our sole discretion, refund you the fees paid for the nonconforming service. Any such refund will in no event exceed the greater of (a) the amount you paid for the nonconforming AP/AR Service or (b) one-hundred (100) U.S. dollars.

4.3 Indemnification

In addition to your indemnification obligations under the FiscalWorks Subscription Agreement, you agree to indemnify and hold harmless FiscalWorks, its officers, directors, and employees from any liabilities, damages, expenses (including reasonable attorney’s fees), penalties, or interest incurred in connection with: (a) any payment executed based on your approval, including payments made to a fraudulent or incorrect vendor; (b) any late fees, interest, or service disruptions resulting from your failure to provide timely information or payment approvals; and (c) any overdraft fees or charges resulting from insufficient funds in your designated payment accounts.

4. Miscellaneous