Loss of control – It goes without saying that anytime something is happening outside your building, you’ll have less control, and outsourced AP vendors are no exception. Additionally, it’s unlikely that they’ll be able to conform to your AP workflows exactly, so you’ll be doing things their way. Also, don’t be disconcerted when outsourcing AP and they have eyes into your financials; a loss of privacy is one drawback and vulnerability when it comes to accounts payable internal controls. Vendor relations should be taken as a customer service approach, because vendors can (and will) pull contracts from your company if they find it difficult to work with your business. From missed due dates or non-payments, vendors will be in touch with the AP department to track down the status of their payment which again, takes away valuable time from accounts payable.

• By using our offerings and services, you are agreeing to the Terms of Services and understand that your use and access will be subject to the terms and conditions and Privacy Notice.
• According to most case studies, companies typically use process outsourcing to add value to their businesses and to improve AP dramatically.
• That’s because it’s easy to manipulate the books, or have a fake expense go unnoticed for months, or even years.
• Account Payable Services aid in meeting legal and regulatory documentation requirements.
• It can improve control by instituting standardized processes, enhancing accuracy, and providing visibility into your financial operations in real time.
• An accounts payable company such as AvidXchange provides cloud-based accounts payable solutions, enabling businesses to easily manage and monitor their cash flows while providing an extra layer of security.

But no matter your focus, clearly defining your end goal is essential to measuring your outsourcer’s performance and setting the right expectations for your business. RSM’s FAO technology is scalable, accessible through the cloud and provides real-time, automated reporting. We work with leading technology partners such as Oracle NetSuite, Sage Intacct, Intuit QuickBooks, Blackline, Tallie and Bill.com. Platforms are regularly upgraded without affecting functionality and as improved technology becomes available, we enhance platform offerings as appropriate, so it’s always up to date.

The Pros and Cons of Accounts Payable Outsourcing

GEP’s automated invoice data capturing process using OCR technology ensures accurate invoice data extraction. All standard invoice data and other essential information is captured and uploaded to your ERP system. Outsourcing stock your accounts payable functions can give you the flexibility to quickly scale up or down, depending on changes in business needs. This leaves your AP team free to attend to the value-creation activities of the business.

If there are limited resources within your accounts payable (AP) department, it’s key to identify how the function can scale to better process invoices when volume increases. This is in addition to all of the other financial tasks you need to take on to keep the business growing. Outsourcing your accounts payable processes represents a significant time and monetary investment.

The average cost to process an invoice is as high as $15, and outsourcing or automation may offer up to a sixfold reduction in processing costs. Our focus on invoice mapping and reconciliation has helped our clients clear unpaid bills within deadlines and avoid getting penalized. In the process, we have successfully kept all our clients’ stakeholders happy and assisted them to focus on all their mission-critical issues. By establishing clear expectations and maintaining a strong working relationship with the outsourcing provider, businesses can maintain appropriate control over their accounts payable processes. Accounts payable (AP) outsourcing is entrusting your organization’s accounts payable processes to a third-party company specializing in managing accounts payable. This can range from invoice receipt and processing to vendor management and payment processing.

Benefits of Using an Accounts Payable Service

So while implementing an accounts payable automation system in-house can help reduce invoice processing costs and improve efficiency, you will still have to have in-house employees dedicated to AP functions. Outsourcing accounts payable processes can also give businesses enhanced visibility and control over financial transactions. Organizations can access advanced technology and tools designed to provide real-time insights into their accounts payable operations by working with a specialized provider. Vendor management services are essential for cultivating positive partnerships and optimizing supplier communication. The accounts payable outsourcing process can be highly beneficial to businesses with a high volume of transactions. Tracking all these transactions and ensuring everything has been paid off on time can be a hassle for many business owners.

Hiring third-party suppliers to manage invoicing or bill-related operations is known as accounts payable outsourcing. Companies would benefit from working with accounts payable services providers to ensure timely payments and to increase overall efficiency. Invoice processing outsourcing allows businesses to keep track of invoice statuses in real time. Paper invoices are more likely to be lost in the mail and take a longer time to process.

Enhanced visibility and control

It’s not just about maintaining your accounting, but also providing a platform to drive profits, improve cash flow, and grow your business. Outsourced accounts payable services are scalable to meet the requirements of your business. Whether you experience seasonal fluctuations or significant growth, a dependable outsourcing provider can adjust their services, resources, and technology to meet your evolving needs. Reputable outsourcing providers prioritize data security and employ stringent security measures to safeguard sensitive financial data.

Accounts Payable Outsourcing Services

You should also consider the provider’s fees and pricing model, as well as any additional costs or charges that may apply. Before outsourcing AP, review your provider’s privacy policy and data security measures to ensure they meet your standards. If you handle sensitive financial data, rights reserved information, or other proprietary data, be sure your outsourced provider can live up to your privacy needs.

Industries that Have Benefitted from Our Accounts Payable Services

That way you can stay on top of PO statements and current prices for better management of inventory. At Global Accounting Corp, our accountants will match records namely statements, ledgers, and other payment notes to arrive at balanced values if all transactions align. Else, we will flag dubious payments and those that remain outstanding for further inquiry. Track and process your payables and manage your growing transaction volume at a fraction of the cost. Join our community to get finance, operations, and procurement resources straight to your inbox.

The Role of the Accounts Payable Function

Having a accounts payable services company that helps you with the accounts payable process can help you streamline your cash flow while maintaining an excellent vendor-supplier relationship. Hiring an outsourced accounting service is often cheaper and more cost effective than hiring in-house staff to handle the finance function. By outsourcing, you don’t have any attributed overhead costs that hiring an employee would generate, such as PTO, health insurance, retirement, vacation, Workers’ Comp, and sick days. Also, the value of having an entire team’s expertise, rather than just one internal person (or more), includes reducing the risk of non-compliance and unreliable financials – especially for smaller businesses starting out.

Fraud is an unfortunate result in many small to medium-sized businesses with one person at the helm of accounting. That’s because it’s easy to manipulate the books, or have a fake expense go unnoticed for months, or even years. There are multiple warning signs that can indicate fraud and are oftentimes because of a hardship an employee’s going through, where they feel financial pressure and don’t know what else to do.