Vendor Onboarding Checklist

Proper vendor onboarding prevents payment delays, tax compliance issues, and fraud. Use this checklist to ensure you collect everything needed before processing the first invoice.

Why Vendor Onboarding Matters

A solid onboarding process: - Prevents payment delays from missing information - Ensures tax compliance (1099, W-9) - Reduces fraud risk through verification - Creates clean vendor master data - Establishes clear payment expectations

Complete Vendor Onboarding Checklist

Basic Business Information

• [ ] Legal business name
• [ ] DBA (Doing Business As) if different
• [ ] Business address (physical location)
• [ ] Mailing address (if different)
• [ ] Main phone number
• [ ] General email address
• [ ] Website URL
• [ ] Business type (Corporation, LLC, Sole Proprietor, etc.)
• [ ] Date business established
• [ ] DUNS number (if applicable)

Contact Information

Primary Contact (Day-to-Day) - [ ] Name - [ ] Title - [ ] Phone (direct) - [ ] Email - [ ] Department

Accounts Receivable Contact - [ ] Name - [ ] Phone - [ ] Email - [ ] Invoice submission instructions

Emergency/Escalation Contact - [ ] Name - [ ] Phone - [ ] Email

Tax Documentation

For US Vendors: - [ ] W-9 (Request for Taxpayer Identification Number) - [ ] Tax ID Number (EIN or SSN) - [ ] Tax classification verified - [ ] W-9 signed and dated within last 3 years

For Foreign Vendors: - [ ] W-8BEN (individuals) or W-8BEN-E (entities) - [ ] Country of residence - [ ] Tax treaty benefits claimed (if any) - [ ] Foreign TIN if applicable

Banking Information

• [ ] Bank name
• [ ] Bank address
• [ ] Account holder name (must match legal name)
• [ ] Account type (checking/savings)
• [ ] Routing number (ABA)
• [ ] Account number
• [ ] SWIFT/BIC code (international)
• [ ] IBAN (international)

Verification: - [ ] Voided check or bank letter obtained - [ ] Account holder name matches business name - [ ] Banking details verified via callback

Payment Preferences

• [ ] Preferred payment method (ACH, check, wire, card)
• [ ] Payment terms agreed (Net 30, etc.)
• [ ] Early payment discount offered? If yes: ___
• [ ] Minimum payment amount (if any)
• [ ] Payment currency
• [ ] Remittance delivery preference (email, portal, mail)

Insurance and Compliance

General Requirements: - [ ] Certificate of Insurance (COI) obtained - [ ] General liability coverage verified - [ ] Workers’ compensation coverage (if applicable) - [ ] Professional liability (if applicable) - [ ] Your company listed as certificate holder - [ ] Coverage expiration date noted

Industry-Specific: - [ ] Required licenses verified - [ ] Certifications confirmed - [ ] Background check completed (if required) - [ ] Security questionnaire completed (if required)

Contract and Legal

• [ ] Master Service Agreement (MSA) signed
• [ ] Statement of Work (SOW) if applicable
• [ ] Non-Disclosure Agreement (NDA) if applicable
• [ ] Payment terms in contract match system setup
• [ ] Contract expiration date noted
• [ ] Auto-renewal terms understood

System Setup

• [ ] Vendor ID assigned
• [ ] Vendor name standardized (follow naming convention)
• [ ] Tax ID entered
• [ ] Payment method configured
• [ ] Banking information entered
• [ ] Default GL account assigned
• [ ] Payment terms set
• [ ] 1099 reportable flag set correctly
• [ ] Approval routing configured

Verification Steps

Business Verification: - [ ] Business exists (check state registration) - [ ] Address is legitimate (not a vacant lot) - [ ] Phone number answers professionally - [ ] Website matches claimed business

Banking Verification: - [ ] Called bank to verify account (or used verification service) - [ ] Account holder name matches vendor name - [ ] Account is active and can receive funds

Reference Check (for significant vendors): - [ ] References requested - [ ] At least 2 references contacted - [ ] Feedback documented

Vendor Onboarding Form Template

Use this form to collect information from new vendors:

Section 1: Company Information

Legal Business Name: _______________________
DBA (if different): _______________________
Business Address: _______________________
City, State, ZIP: _______________________
Country: _______________________
Phone: _______________________
Website: _______________________
Business Type: □ Corporation □ LLC □ Partnership □ Sole Prop □ Other: ____
Tax ID (EIN): _______________________

Section 2: Contacts

PRIMARY CONTACT
Name: _________________ Title: _________________
Phone: _________________ Email: _________________

ACCOUNTS RECEIVABLE
Name: _________________
Phone: _________________ Email: _________________

Section 3: Banking

Bank Name: _______________________
Routing Number: _______________________
Account Number: _______________________
Account Type: □ Checking □ Savings
Account Holder Name: _______________________

□ Voided check attached □ Bank verification letter attached

Section 4: Payment Preferences

Preferred Payment Method: □ ACH □ Check □ Wire □ Card
Payment Terms: □ Net 15 □ Net 30 □ Net 45 □ Net 60 □ Other: ____
Early Payment Discount: □ No □ Yes: ____
Remittance Delivery: □ Email □ Mail □ Portal
Remittance Email: _______________________

Section 5: Certification

I certify that the information provided is accurate and complete.

Signature: _______________________
Printed Name: _______________________
Title: _______________________
Date: _______________________

Verification Best Practices

Verify Before First Payment

Never pay a new vendor without verification:

1. Confirm business exists: Check state business registry
2. Verify tax ID: Use IRS TIN matching or verification service
3. Confirm banking: Call bank or use account verification service
4. Check references: For vendors over $X threshold

Red Flags During Onboarding

Watch for these warning signs:

Segregation of Duties

Separate these functions: - Vendor setup (one person) - Vendor approval (different person) - Payment processing (another person)

This prevents a single person from creating a fake vendor and paying it.

Ongoing Vendor Management

Annual Review

• [ ] Verify vendor is still active
• [ ] Update W-9 if needed (every 3 years minimum)
• [ ] Renew insurance certificates
• [ ] Review contract terms
• [ ] Update contact information
• [ ] Verify banking details still accurate

When Changes Occur

Banking Changes: - Always verify through known contact - Never accept banking changes via email alone - Document verification steps

Ownership Changes: - New W-9 required - Update tax information - Review contract impact

Vendor Master Cleanup

Periodically review vendor master for: - Duplicate vendors (merge) - Inactive vendors (deactivate) - Missing information (complete) - Outdated banking (verify)

Key Takeaways

• Collect all required information before the first invoice
• Verify tax ID, banking, and business legitimacy
• Use a standardized form for consistency
• Separate vendor setup from payment processing
• Review and update vendor information annually
• Watch for red flags that indicate fraud risk

Want vendors to provide complete information when they submit their first invoice? See how BillerPlus captures vendor data during intake →