UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington D.C. 20549

FORM 8-K/A

Amendment No. 1

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 31, 2009

TRANSCEND SERVICES, INC.

(Exact name of registrant as specified in its charter)

One Glenlake Parkway, Suite 1325, Atlanta, GA 30328

(Address of principal executive offices, including zip code)

(678) 808-0600

(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Explanatory Note

This Form 8-K/A amends the Current Report on Form 8-K filed by Transcend Services, Inc. on September 3, 2009 by including financial statements required to be filed under Items 9.01(a) and 9.01(b) pursuant to Rule 3-05 of Regulation S-X. In addition, the abbreviation of Medical Dictation Services, Inc. has been changed from “MDI” to “MDSI” to avoid any confusion with Medical Dictation, Inc. (“MDI”) which was acquired by Transcend in 2005.

On August 31, 2009 Transcend purchased from Dorothy K. Fitzgerald, all issued and outstanding shares of common stock of Medical Dictation Services, Inc. (“MDSI”). MDSI operated on a fiscal year ending March 31.

The required audited annual financial statements of MDSI as of and for the periods ending March 31, 2008 and 2009 are filed as Exhibit 99.2.

The required unaudited interim financial statements as of June 30, 2009 and for the period then ended and are filed as Exhibit 99.3.

The required unaudited pro forma condensed balance sheet as of December 31, 2008, unaudited pro forma condensed consolidated statements of operations for the year ended December 31, 2008, and unaudited pro forma condensed consolidated statements of operations for the six months ended June 30, 2009 are filed as Exhibit 99.4.

The representations, warranties and covenants contained in the agreements identified above as exhibits were made only for the purposes of those agreements, are between and among the parties to them, as of specific dates, and are solely for the benefit of those parties. The agreements may be subject to contractual limitations agreed to by the parties as well as standards of materiality that differ from those generally applicable to investors, and may reflect an allocation of risk. Various provisions may be interpreted differently by the parties, and may be waived or modified. While the agreements constitute public disclosure under the federal securities laws, when reading representations, warranties and covenants in those agreements, investors should consider the foregoing, as well as information provided by us in this filing and in our other filings, and should not rely solely upon such agreements as characterizations of an actual state of facts.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

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