Vendor Onboarding Checklist
Vendor record in accounting system with all required fields populated. Document folder complete: W-9, NDA, MSA, bank details. Access provisioned and logged with expiry dates. Welcome email sent. 30-day check-in scheduled. Vendor tracking sheet updated: onboarding complete.
Before you start
- New vendor approved by finance and legal (PO or contract signed)
- Vendor contact confirmed (name, email, phone)
- Internal system access list prepared by department head
- Vendor name, legal entity name, and primary contact
- Service type and contract value
- Systems or data they will need access to
The steps
- Send vendor onboarding packet — Email the vendor a W-9 (or W-8BEN for international), an NDA if unsigned, a secure bank-details form — never plain email — and the MSA or SOW for signature. Give them five business days. Log the send and due dates in the vendor tracker.
- Verify and file returned documents — On the W-9, check legal name, EIN format and signature date. On bank details, check routing and account numbers against a voided cheque or bank letter, not the form alone, for anything sizeable. File everything as VendorName_DocumentType_YYYY-MM-DD.
- Set up vendor in accounting system — Create the record with the legal name from the W-9, payment terms from the contract (Net 30 unless stated), payment method, the 1099 flag for US vendors over $600 a year in services, expense category and cost centre. Attach the W-9 to the record.
- Provision system access — Grant only what the contract scope requires. For each system, log the permission level, the date granted and an expiry set to the contract end date. Send credentials through a password manager share, never plain email.
- Send vendor welcome and point-of-contact info — Email them their internal point of contact with Slack handle, how to invoice — address or portal, required fields, Net 30 — the escalation path, and an NDA reminder if they are touching shared systems. Confirm access works before calling onboarding done.
- Schedule 30-day check-in — Book a 30-day check-in with the internal contact and the vendor: access issues, whether invoicing is working, any scope to clarify. Set the reminder for day 25 and log the date on the vendor record.
- Mark onboarding complete and update vendor log — Update the tracker: documents received, accounting setup date, access provisioned per system, completion date. Tell the department head the vendor is cleared to start, and archive the onboarding thread.
If it goes wrong
Vendor delays W-9 and department wants to start work immediately
Work can begin, but payment must be held until W-9 received. Communicate this clearly to vendor and department head. Do not make exceptions — IRS backup withholding rules apply.
Vendor sends invoice before being set up in accounting system
Log invoice with received date, hold for processing until setup complete. Communicate expected payment date to vendor. Do not pay outside the accounting system.
Access granted beyond contract scope by department head
Flag to IT and legal. Access beyond scope may violate NDA or create liability. Revoke over-provisioned access and revert to contract-scoped access only.
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