With over 18 years of experience in the industry, ILM ensures high-quality AP outsourcing services, with expertise in all major payments and ERP systems. More and more businesses rely on AP outsourcing firms to redesign and streamline their AP processes despite mild hiccups along the way. Accounts payable outsourcing is a handy solution for companies to make their AP processes efficient & cost-effective. Book this 30-min live demo to make this the last time that you’ll ever have to manually key in data from invoices or receipts into ERP software. Usually, such third parties use internal servers and cloud storage to store sensitive data.
Additionally, since the outsourcing team only works on your accounts payable, they can deliver results much faster. If you would like to explore further how Near can help you outsource your accounts payable roles to professionals in LatAm, book a free consultation call today. Set up touchless AP workflows and streamline the Accounts Payable process in seconds.
Difficult to report errors
If you’re still reliant upon cumbersome processes and old technology, outsourcing could help you see results faster and more clearly. Outsourcing is not merely the shifting manual tasks like data entry to an outsourced provider. According to most case studies, companies typically use process outsourcing to add value to their businesses and to improve AP dramatically. Some companies handle sensitive financial data, which makes it difficult or impossible for them to hand it over to third parties.
Get ready for a laugh-out-loud adventure through the murky waters of provider selection. Close your eyes and envision a world where invoices effortlessly glide through the system, akin to graceful penguins sliding and twirling on the glistening ice. Accounts payable outsourcing allows you to witness this extraordinary phenomenon. By entrusting these mind-numbing tasks to the experts, you can bid farewell to the days of manual invoice handling. Embrace the joy of automation and witness the seamless flow of invoices, as if choreographed the role and responsibilities of the managerial accountant by the most talented of dancers.
Accounts payable outsourcing vs accounts payable automation
When outsourcing, especially to a third party, any questions must wait for an answer from another business entity. Outsourcing AP companies have employees that are cross-trained under high standards to cover when absences happen. Join our community of finance, operations, and procurement experts and stay up to date on the latest purchasing & payments content. While you may not be able to access the exact data about their projects, case studies and accounts of the provider’s previous work give you an idea about their quality. This goes without saying, but the quality of work done depends on the service provider you choose. While this does take some of the supervisory duties off your hands, the lack of control can hinder communication, transparency and efficiency.
Use performance monitoring tools
By thoroughly assessing a provider’s capabilities, you can select the best-fit partner for your organization and ensure that your accounts payable processes are effectively managed. Additionally, when you own your own AP process you can turn accounts payable into a strategic partner for your business. 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. If an emergency happens, they likely won’t spend the weekend making it up. Additionally, it’s unlikely that they’ll be able to conform to your AP workflows exactly, so you’ll be doing things their way.
With advanced technology and real-time reporting, you can track every step of the AP process, from invoice receipt to payment. It’s like having a front-row seat to a comedy show, where every punchline is a successful transaction. As one of the leading global professional services companies, Accenture brings a wealth of expertise and innovation to the accounts payable outsourcing arena. They have revolutionized the way businesses manage their financial processes, leveraging advanced technologies like robotic process automation and artificial intelligence. Outsourcing may help your company cut costs and improve services, but over-dependence on third-party providers introduces more risk.
- However, managing them can sometimes feel like herding cats at a catnip convention.
- Outsourcing accounts payable processes can result in a loss of direct control over managing financial transactions and vendor relationships.
- Companies that don’t use e-invoices and other electronic automation tools are likely to lose out to more productive competitors!
- AP software can also increase timely payment processing with automated triggers in the matching and approval process.
How to Solve Accounts Payable Issues: Outsource or Automate?
This leaves your AP team free to attend to the value-creation activities of the business. Upgrading old accounting systems to modern tools is costly and time-consuming. But evaluating your options with a complete understanding of what’s available leads to better business outcomes.
Poor vendor management can lead to issues such as overpayments on invoices, missed early payment discounts, and even loss of contracts with key suppliers. Outsourcing vendor management tasks can ensure that vendor relationships are well-maintained. Choosing between accounts payable outsourcing or automation depends entirely on the size and nature of a business. While AP automation will make its in-house AP processes easier, outsourcing will be ideal for a business looking to reduce its AP workload.