To see how automation can improve your business outcomes with a scalable solution, request a demo of Order.co. There is no hard and fast answer to the question of outsourcing, as the individual needs of your business, your AP volume, Understanding Prepaid Expenses: Examples & Journal Entry and the structure of your current processes will help determine the best course of action. Take a few pages out of WeWork’s playbook and learn how automation can solve some of the greatest challenges facing your finance team.

And as these providers could be thousands of miles away, keeping track of these duplicates can be difficult. When it comes to accounting and bookkeping practices, this decision responds to a cultural shift in accountancy. With the evolving needs of clients and the introduction of Making Tax Digital for Income Tax Self Assessment (MTD ITSA), UK accounting firms and practices have never been busier. According to Sage Practice of Now 2020 report, 82% of accounting firms report that clients expect more advisory and consulting services and resources from accountants today than they did five years ago.

Why accounts payable outsourcing is gaining popularity

In light of this, it makes sense to take a deeper look into what accounts payable outsourcing is, why it has become so popular. Accounts payable outsourcing is becoming a popular means of making a business more efficient and therefore profitable. For many companies, the number of invoices and bills they deal with puts a lot of avoidable pressure on accounting teams. It’s essential to prepare your in-house employees before outsourcing your accounts payable tasks. As most outsourcing providers charge per invoice, duplication errors can be quite costly.

Each of those listed above is titled as “best” for a certain function, and if that is what you are looking for, it may be the right choice for you. The Beanworks customer service teams are broken into specific sections for any type of questions you may have. They also have robust FAQs and education sections on the site to help you understand their AP processes. Along with the ability to supercharge your AP automation, Papaya Global also offers onboarding, HRIS, payroll, compliance, and cross-border payment services.

Loss of Control in Accounts Payable Outsourcing

Outsourcing presents a unique opportunity to completely revamp the AP process while also freeing up time and money. In this post, we’ll define and add detail to the practice of accounts payable outsourcing, but also examine the alternatives to accurately and efficiently manage a backlog of unpaid invoices, including AP Automation. There is only one word that comes to mind when I think of Haroon Jafree, and that is brilliant! We worked together at Sara Lee (now Hillshire Brands) on numerous business process reengineering projects in accounting and finance, including implementing a Trade Promotions Management System. As a result, we made a dramatic increase in the productivity level of our company. More and more companies are using accounts payable outsourcing solutions every day.

Most in-house teams have a financial supervisor, such as the CFO, to manage issues when employees aren’t present. This way, companies gain huge cost reductions from saved time and improved productivity. While you have to hire employees and spend time training them, you also need to purchase the tools required to do the job! The company’s products can also be integrated with accounting platforms including SAP, Oracle, Netsuite, Microsoft Dynamics, Quickbooks, Sage, and others.

Invoice Processing

If your company handles sensitive financial data and is hesitant to outsource a third-party team, implementing an AP automation solution to keep full control over the AP process may be the best option. The AP department of a company is involved with tasks such as entering data, processing invoices, creating purchase orders, and more. These activities are important for companies as they help keep track of the bills and invoices that need to be paid on a regular basis. To put it simply, accounts payable is the money that a company owes to its vendors or suppliers for products or services that it has received but hasn’t paid for yet. Your Account Payable team processes the vendor invoices and can also help you make the payments to your vendors via Bank ACH/Wire.

• Struggling to transform your accounts payable process to create greater value for your business?
• With an AP automation solution, companies are able to improve efficiency and accuracy, reduce manual labor and errors, and save time and money, while still having control over the accounts payable processes.
• If your company handles sensitive financial data and is hesitant to outsource a third-party team, implementing an AP automation solution to keep full control over the AP process may be the best option.
• The technology that comes with an accounts payable outsourcing provider presents the opportunity to eliminate paper and reduce manual tasks like data entry.

Usually, such third parties use internal servers and cloud storage to store sensitive data. While it serves as centralized access for both parties involved, the data is also prone to potential security breaches and hacks. Set up touchless AP workflows and streamline the Accounts Payable process in seconds.

GEP Is a Leader and a Star Performer Among Procurement Outsourcing Providers

Outsourcing accounts payable with Bestarion goes beyond a simple delegation of tasks. As a leading accounting outsourcing provider, Bestarion elevates the entire AP process through a powerful combination of industry experts and state-of-the-art technology. To address this concern, it is essential to communicate clearly with the potential outsourcing provider. Emphasize the importance of open communication and transparency throughout the partnership. Seeking a provider that prioritizes regular updates, and real-time reporting, and maintains clear lines of communication can help mitigate the apprehensions surrounding the loss of control in the outsourced AP process.

Privacy and Security Concerns

If you’re at that point with your accounting department, there are options out there to help. Outsourcing invoicing and other administrative tasks away from your Accounts Payable team can ensure they’re not overwhelmed and have time to focus on other tasks. Choosing a vendor to help you take advantage of the benefits and opportunities offered by AP outsourcing is a major decision. It pays to partner with an AP vendor that has an established track record, uses industry-leading technology, and provides stand-out customer services. These specialized companies have the knowledge, resources, and technology required to execute and improve the organization’s current AP procedures.

Here, an AP outsourcing provider serves as a bridge, offering sophisticated security measures and cutting-edge technology for accounts payable processes. By doing so, the outsourcing partner effectively reduces the likelihood of a company falling victim to payment fraud or other security breaches. Many accounts payable outsourcing companies work off-site but use modernized technology that can be tracked at every step. With automated tracking in place, businesses can gain real-time access and information on their account payable processes.

Reduce In-House Manual Errors

Businesses should remember that they lose privacy when they are divulging financial information and providing access to sensitive data while opting to outsource AP processes. Organizations dealing with sensitive financial data may be hesitant to use a third-party vendor for their AP processes. The move to outsourcing requires internal stakeholders to champion the project and take it to completion. Many business leaders expect a huge headache in switching from a traditional AP system to a more practical automated one.

Despite the benefits of using accounts payable outsourcing companies to relieve your internal accounts payable department, there are drawbacks to this approach. Even the slightest error discovered in an accounts audit can lead to not only costs but also compliance issues. Manual data entry and the lack of control around Purchase Order requisitions, approval, and delivery account for many account payable errors. 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.

Join our community to get finance, operations, and procurement resources straight to your inbox. Order.co helps high-performing clients in diverse industries increase the efficiency of their procurement process. Many companies outsource their AP for a variety of reasons that make perfect sense for their strategic situation.

Accounts payable outsourcing is the process of hiring a specialised service provider who can take over multiple AP functions that businesses find difficult to handle in-house. While accounts payable outsourcing is a viable option for some organizations, many can get the benefits of outsourcing while maintaining higher efficiency and security using a procurement platform. The efficacy of third-party service providers is difficult to gauge without implementing performance metrics and measurement tools. You may never know if they are billing for idle time, accessing non-work websites, accurately reporting issues, etc., if you don’t set expectations and check that they’re met. Outsourcing allows you to focus on core operations while freeing up resources for other business functions. If your team can create value elsewhere in the business by moving to an outsourced AP model, outsourcing might make sense.