Challenge potential partners to detail a robust transition process that includes documentation, effective training, change management, and a structured solution for deploying automation tools. Make sure you understand how the transition will occur, how you will know it’s completed, and how the outsourcer measures success. Outsourcing allows you to focus on core operations while freeing up resources for other business functions.

• Some companies consider handing this information to an external entity a significant security risk.
• This includes receiving, validating, and matching invoices to purchase orders, resolving discrepancies, obtaining required approvals, and ensuring timely payment.
• Our team will prompt you to make early clearance of supplier invoices to score discounts set aside for prepaying clients.
• Businesses that are used to doing accounts payable in-house are also used to a certain level of control.

Automation offers all these outcomes without sacrificing the security or visibility of your AP process. QX delivers high processing accuracy and low operational costs through process excellence, standardized accounts payable (AP) practices, and strategic use of technology. With our solutions, your business will be able to exploit new cost saving avenues, improve working capital management, and build better supplier relationships. To acquire the resources necessary to streamline their internal processes, small and medium-sized businesses often turn to accounts payable outsourcing companies to fill the gap. When assessing the cost and value of outsourcing AP services, it’s important to consider not only the upfront costs but also the long-term benefits.

Costly Payment Processing

Outsourcing is likely to introduce modern AP software as well as collaboration tools to boost your efficiency. Your in-house team will probably need time to familiarize themselves with the same. This is essential to judge how well the outsourcing provider’s privacy and data protection measures match up to yours. Most businesses have a few exceptions and business rules in their accounts payable workflow. As you’re not physically present where the tasks are performed, it can be difficult to manage any issues that pop-up.

• AP outsourcing solutions put efficient systems in place that allow you to pay vendor invoices on time (or even early) to enhance supplier relationships.
• Order.co helps high-performing clients in diverse industries increase the efficiency of their procurement process.
• We employ stringent security measures, such as secure data transfer protocols, encryption, and restricted access to sensitive financial data.
• Other companies prefer to adopt new technology and processes in-house rather than hand control of their operations to another organization.

Vendor management services are essential for cultivating positive partnerships and optimizing supplier communication. 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.

Should you outsource your accounts payable?

To get the security tools and skills they need, many small to medium-sized businesses rely on the outsourcing services of larger and more sophisticated AP experts. An example of an accounts payable is when a company owes money to vendors for goods or services, such as transportation costs, raw materials, leasing fees, and software subscriptions. Asking for references and case studies can also provide valuable insights into the provider’s track record and effectiveness in managing accounts payable processes for other organizations. Selecting the right accounts payable service provider is critical to ensure a successful partnership.

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Streamline your AP process with Order.co

If your team can create value elsewhere in the business by moving to an outsourced AP model, outsourcing might make sense. As the business world becomes more competitive, companies continually look for ways to improve services and increase cash flow. Following the rationale that time is money, businesses use outsourcing to make the most of internal employee time.

As a result, we made a dramatic increase in the productivity level of our company. Accounts payable outsourcing refers to assigning the management of the company’s payables to a third-party service provider. Exceptions and errors in invoicing can delay payroll accountant salary guide payments to suppliers, block your working capital and result in loss of early payment discount opportunities. GEP identifies and manages invoice exceptions and works with your requestors/buyers and suppliers to resolve and expedite payments.

For a business, its accounts payable and T&E processes have a huge impact on its cash flow, regulatory compliances and supplier relationships. However, many businesses continue to struggle with manual data entry of paper-based documents or inefficient processes. Accounts payable outsourcing is the practice of hiring a third party to handle your organization’s AP processes. AP providers come fully equipped with the tools, skills, and technology not only to manage your existing accounts payable functions but also to integrate new capabilities to give you a more streamlined environment. 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.