Third-party accounts management companies have modern facilities and software to efficiently and accurately accomplish tasks. As a specialized accounts payable outsourcing services company, we have been successfully delivering customized accounts payable services that are suited to the specific needs of each business. We have assisted many organizations across the globe to simplify their accounts payable workflow, limit access and establish superior control, and prioritize invoicing processes. These have honed our skills to a level where we can meet your needs with full competency.

They’ll even negate many of the problems that have plagued AP departments for decades. If you’re considering working with one of the many noncumulative preferred stock, you must weigh the advantages with the disadvantages to make sure it’s the most beneficial decision for your business. Make sure you go through your provider’s privacy policy and data protection measures carefully.

This dependency might be hazardous, especially if the outsourcing firm of a business’s outsourcing partner faces bankruptcy or data breaches. Businesses that work with outsourced Accounts Payable service providers may have problems validating issues or mistakes with an external firm. An outsourced Accounts Payable department does not ensure transparency when reporting errors and difficulties. The best providers of account payable outsourcing have developed effective procedures that enable businesses to pay their vendor invoices sooner or on time. Faster payment of bills increases the likelihood of good vendor and supplier connections and obtaining early payment discounts. You can avoid issues with data security or performance quality by vetting your service provider and having a thoughtful onboarding process.

• AvidSuite for Financial Services features ASCEND, an AP automation solution that utilizes artificial intelligence to quickly read and capture critical invoice data.
• AP automation uses business intelligence software to manage your in-house systems (with lower total costs on your part).
• This is essential to judge how well the outsourcing provider’s privacy and data protection measures match up to yours.
• Both can help take a load off of your Accounts Payable department, reduce errors, streamline processes, and save your company money in the long run.
• Businesses should establish clear communication channels and expectations with their outsourcing provider from the outset to address communication challenges.

When you’re outsourcing Accounts Payable, you’re hiring an outside team to fully take over and run your AP department. An Accounts Payable outsourcing company will utilize automation software to maximize efficiency and accuracy. Alternatively, automation technology can be implemented in-house and be operated by your Accounts Payable team. Accounts Payable outsourcing and automation sometimes get used interchangeably, but there is a difference between the two.

In contrast to Parisian nearshoring, nearshore outsourcing to Latin America enables agile real-time communication with American teams. Shared or comparable time zones, a westernized culture, direct flights from many major cities, and solid English fluency are all available. Top performers in offshore locations are seldom ready to work overnight shifts that conform to American work hours. North American company executives must frequently compromise on internal and BPO teams working different schedules to avoid high turnover and lower quality. Typically, bottom performers can achieve large improvements and ROI by first focusing on the median performance level.

Related Services

Businesses that outsource accounts payable can gain better accuracy, better security, and quicker payments, which improves cash flow and overall efficiency. As a provider of accounts payable solutions for middle-market firms, AvidXchange can assist organizations in automating their accounts payable processes. AvidXchange offers purchase-to-pay solutions for a variety of industries, including real estate, construction, financial services, health care, technology, and software. Partnering with accounts payable services providers can bring benefits to your business. Accounts payable solution providers can assist you in managing your accounts payable processes. By hiring a third-party vendor, you can leverage the latest technologies to streamline your workflows.

Regarding the benefits, outsourcing accounts payable can provide organizations with access to the most up-to-date tools and technology to help them streamline their invoice-to-pay reconciliation. Ideally, accounts payable services should be able to offer customized automation solutions for business-specific accounting needs. By outsourcing accounts payable processes to service providers that can provide efficient automation solutions such as AvidXchange, organizations may be able to pay their vendor invoices on time and accurately. Accounts payable outsourcing can offer significant benefits to businesses, including cost savings, improved efficiency, and enhanced visibility and control over financial transactions. Efficient payment processing is another key service provided by accounts payable outsourcing companies. By ensuring timely and accurate payments to your vendors, your organization can benefit from improved cash flow management and reduced invoice processing costs.

Here to help with the challenges you face

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! Offer suggestions around researching the privacy policies and security measures prior to engaging with the outsource partner. An Accounts Payable department that is managing the AP process on its own (in-house) is most likely overwhelmed, especially if you’re a small business with piles of invoices coming in each day.

Faster turn around times

While outsourcing helps a company cut costs and improve its service levels, it can often limit their independence. Most businesses still use outdated and expensive systems like optical character recognition (OCR), or even paper invoicing, to manage their AP processes. Ask potential providers about their data privacy and security policies and any certifications or audits they may have undergone to demonstrate their commitment to safeguarding your financial information.

Enhanced visibility and control

Considering all this, organizations often find that outsourced accounting services can offer cost-effective rates that work out cheaper in the long run. Companies often rely on several software tools to support their various accounting operations; for example, ERP (enterprise resource planning) software, invoice processing applications, workflow technologies, and more. A dependency on multiple tools leads to various challenges, such as a complex procurement process, increased maintenance, and more intensive employee onboarding and training programs. A top concern of 41% of organizations is human errors due to manual inputs that lead to inaccurate data and accounting mistakes. These mistakes can lead to wrongfully inflated payments, late payment penalties, or other accounting errors that can drag on time and resources. Paro offers a full suite of outsourced bookkeeping and accounting solutions, including accounts payable, to solve your problems and drive growth.

Outsourcing to Software

Essentially, it’s an IOU, and involves the combination of travel expenses, vendor payments, and operating costs. While managing an internal AP team is simple, it is more difficult to manage outside service providers. You have no influence over how they manage your accounts or carry out back-office operations.

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. Accounts Payable outsourcing is the decision to hire a third party with the specific expertise and technology to take over the AP processes, such as receiving vendor invoices, tracking business debts, and making payments on time. Many vendors from across the globe offer Accounts Payable services, and businesses that utilize them can save time and money and take loads of stress off their employees. By establishing clear expectations and maintaining a strong working relationship with the outsourcing provider, businesses can maintain appropriate control over their accounts payable processes. Outsourcing the AP function is becoming more and more common as companies realize they can improve operations without making an in-house investment in technology.

Inaccurate Data Impacts Financial Visibility and Forecasting

Businesses with growing transaction volume can especially benefit from the expertise of a fractional bookkeeper or accountant. As the business grows and talent is stretched thin, the finance department runs the risk of missed, late or inaccurate payment, which can cost the business in the short and long term. A flexible solution can bring the business up to speed as it scales without a full-time commitment.

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. By partnering with us, you can tap into the vast pool of talented professionals in Latin America, drive growth, and increase the financial health of your company. We’re then responsible for keeping your team on track and ensuring they have everything they need to complete their work to a high standard, while you maintain control of their objectives and deadlines. A higher education degree or certificate is not necessary for an accounts payable officer to successfully perform their duties.

Duplicate invoices may also result in duplicate payments, higher expenses, and decreased profitability and cash, all of which can severely limit cash flow management. When senior management is looking at these expenditures from a high level, they will certainly be interested in investigating all alternatives for lowering those expenses for invoice processing, including outsourcing. While outsourcing accounts payable is a viable solution for some, it can leave you open to certain risks inherent to working with a third party. AP automation, on the other hand, can help companies achieve many of the same positive business outcomes in terms of efficiency, accuracy, and profitability.