Outsourced Accounts Payable Services
Are back office-related tasks causing a major backlog at your office?
Or do you need help keeping up to date with invoice processing and ensuring fewer data entry errors are made?
Working with accounts payable outsourcing companies can help you stay on track and ensure that your cash flow remains healthy thanks to the assistance of an outsourced AP department.
Contact our team to find out more about this outsourced solution, and be sure to read below for extra information on how your business can benefit from outsourced accounts payable services.
Can accounts payable be outsourced?
Often, companies will choose to outsource accounts payable services to reduce costs linked to hiring in-house staff members.
Also, accounts payable outsourcing can be a good solution for new or startup companies needing the capabilities or workforce to handle accounts payable priorities.
Another plus is that accounts payable and receivable services providers can provide specialist customer support, fostering long-term brand loyalty.
They can help improve cash flow and also reduce the chances of payment fraud.
How much does it cost to outsource accounts payable?
Every accounts payable services company package can be tailored according to a company’s goals and budget.
The size of your business is usually a factor in the cost for AP outsourcing, so keep this in mind if you are considering working with accounts payable services providers.
What is outsourcing in AP?
Some of the main tasks of accounts payable outsourcing include administering invoices and other bill-related priorities.
AP process teams can also match purchase orders, archive records, do reports, and handle any AP function as needed.
Most outsourced partners only use industry-leading facilities and administration (F&A), enterprise resource planning (ERP), and source-to-pay systems, which means that the expertise a company is seeking is already present.
Third-party providers are already trained in these systems and are experts in their field when working with top cloud-based systems.
They can provide a high level of reporting and consistently improve their processes to ensure only the highest-quality services are provided.
Also, thanks to AP automation, third-party teams can speed up processes without compromising quality. and ensuring fewer errors.
They can easily manage all your invoices and ensure that payment terms are met accordingly.
Overall, these outsourced accounts payable service teams can play a key role in strategic cost management, allowing any business to manage its expenses and revenue better.
Working with these providers can further improve your standing with vendors, especially when they receive fantastic service from your business, thanks to the streamlined processes of your outsourced accounts payable services provider.
What are the benefits of outsourcing accounts payable services?
Here are some advantages to keep in mind if you are considering working with an outsourced company.
1. A cost savings solution for your business
When you outsource account payable services, you can negotiate a fixed fee upfront with your provider of choice for operating costs.
This means you are better positioned to stay within budget and manage your business’s financial health more efficiently.
2. Instant access to expert resources
AR teams are already skilled in various processes.
They have critical insights into industry best practices and are optimally trained, which means there is no delay once you have hired your desired team – they can instantly start working on any tasks that you need assistance with.
3. A flexible model that can help you focus on business growth
The choice is yours whether you want a permanent outsourced AR team or only need assistance for a specific timeframe if you plan to hire in-house talent in the future.
This makes it easy to create a solution that works best for your business and how you would like to scale it in the future.
Outsourced AP can further help you to focus on your core business, and help you increase cash flow thanks to the AP process.
Ready to invest in AR services?
Contact our expert team today – we would be happy to assist you with any questions or guidance you might need when choosing an outsourced AR team!
Want Free Outsourced Accounts Payable Advice?
Gain Access to our Outsourcing Consultants today
Ready to start empowering your business?
FAQ's
Have a look below for more information regarding outsourced accounts payable services and working with an AP team.
Why do companies outsource accounts payable services?
There are several reasons why businesses look to third-party providers for accounts payable solutions.
Here are some of the primary considerations:
There is not enough workforce in the office to manage AP tasks
Smaller teams, especially, can benefit from using outsourced accounts payable services, as this could relieve the strain on in-house teams, which often need to juggle several responsibilities.
In the case of more prominent organizations, outsourced AP services can ensure that processes are impeccably managed and that all processes are handled on time.
It is cheaper to work with outsourced teams
No additional hires, no extra training and no other additional overhead costs can save any company a substantial sum of money.
Considering that every cent counts when it comes to company expenditures, it makes sense to work with an outsourced team that charges a fixed fee.
Third-party providers have a razor-sharp focus on all your AR tasks
This leaves less room for error and duplicate payments entry, and gives companies peace of mind that there are no discrepancies in the data entry of their financial records.
Are there any drawbacks to hiring third-party AR service providers?
One of the most important things to remember is that a third-party AP services provider is an off-site partner you work with.
Therefore, a level of trust must be established upfront to ensure that you do not end up trying to micromanage a skilled partner.
Is outsourcing accounts payable services expensive?
Each service package can be tailored according to a business’s budget and needs, which certainly makes working with a third party worth the consideration.
What would AR services typically include?
Several accounts payable outsourcing services can be managed by vetted, professional teams.
A third-party provider can cover several touch points, including processing purchase orders and monthly ledgers, debit memos, and sales tax.
Skilled teams can also manage complete AP automation, thanks to using the latest technology as part of their services for accounts payable processes.