Accounts Payable Outsourcing Services in USA

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.

The global economy is recovering from the pandemic, but this is not the time to take your eyes off cost management. Bench provides resources for customer education, including guides to familiarize you with the platform, an FAQ section, and a chatbot on the website. Melio offers an FAQ section, a blog to help you understand the platform better, a help forum, and an email form to send a message to customer support. Remote offers AP outsourcing, along with the ability to outsource your entire HR department.

Smart companies know that they can reduce time, improve the strain on vendor relationships, and save money internally by using accounts payable outsourcing companies for their AP process. Our focus on invoice mapping and reconciliation has helped us clear unpaid bills within deadlines and avoid getting penalized. In the process, we have been successful in keeping all your stakeholders happy and assisting you focus on all your mission-critical issues. Accounts payable (AP) outsourcing companies step in to handle your company’s invoice capture, verification, and payment systems. With reliable accounting staff in critically short supply, a good AP vendor ensures your suppliers and vendors get paid on time, all the while unlocking big potential savings on staffing, equipment, and overheads. The technology that comes with an accounts payable outsourcing provider presents the opportunity to eliminate paper and reduce manual tasks like data entry.

The Pros and Cons of Outsourcing Your Accounts Payable

Take advantage of CTP’s dedicated, secure systems to handle it for you, with more reliability and faster turnaround. But without the right efficiencies and reporting tools, the risk of payments fraud and vendor non-compliance escalates as businesses grow. In fact, according to the 2018 Payments Fraud and Control Survey by the Association for Financial Professionals (AFP), 78% of all organizations surveyed were hit by payments fraud in 2017. Among those that were hit by fraud, 92% said the attacks collectively cost at least 0.5% of their organization’s annual revenue.

Outsourced accounts payable providers have all the resources they need to optimize your process, including automation and reporting tools. Instead of going through the process of acquiring these tools themselves, many companies choose to outsource to get access to their benefits at a fraction of the cost. Being able to hand over crucial AP responsibilities may be good but it comes at a cost.

Accounts Payable Outsourcing Services for Established Companies

We’re all guilty of it, having that ‘I’ll just do it myself’ mentality, and sometimes it works to our advantage, and sometimes it doesn’t. When it comes to your company’s accounts payable process, outsourcing it through an accounting service that provides AP automation could mean the difference between a thriving and struggling business. Of course, outsourcing accounts payable may not be for everyone, but it’s certainly worth exploring. Since 2000, Invensis has been catering to the diverse outsourcing needs of clients for multiple industries and constantly striving to add value to clients’ businesses. When choosing an accounts payable outsourcing company, it’s important to consider factors such as the provider’s reputation, track record, and the types of services they offer. You should also consider the provider’s fees and pricing model, as well as any additional costs or charges that may apply.

With our simple interface, you can fully automate Accounts Payable while having easy access to data and analysis at the click of a button. Plus, you can manage payments with batch approvals, allowing you to authorize the payment of vendors efficiently. We’ll even maximize your rebates by paying your vendors with virtual cards. If you want the benefits of outsourcing Accounts Payable but still maintain control of the processes, P3’s Vendor Payment Automation Solutions tool is the perfect middle ground for your business.

Ryan Davis, CEO of CINC Systems, on Accepting the Unknown

When you outsource the functions of your A/P department to us, that’s exactly what happens. Accounts payable outsourcing is a handy solution for companies to make their AP processes efficient & cost-effective. The most common AP processes that are outsourced are purchase order or invoice matching (0r 3 way matching), invoice automation, discrepancy resolution, and AP administration. A business can opt for what it wants to outsource depending on the magnitude of work and budget involved. Outsourcing companies may not always be transparent in how they deal with your AP processes.

The company also offers out-of-the-box integration with most ERP systems for seamless data transfer as well as process analysis and optimization services. We are available to review, assess and identify solutions and best practices that can improve your AP process. In these cases, there is sometimes a possibility that certain entries will be duplicated. Before outsourcing, it’s wise to educate your employees about the new process so they can work in tandem with your outsourced provider. There’s nothing worse than conducting an accounts payable audit and discovering errors.

The company’s processes are fully Sarbanes-Oxley compliant and compatible with all major accounting and ERP systems. The company claims its software can reduce data entry errors by 83% with automatic header and line item capture, reducing the time typically spent by AP staff on entry by at least 50%. The biggest players in the AP outsourcing industry include payment processing specialists, specialist software suppliers, and end-to-end outsourcing service suppliers. These companies are providing technology, people, and value-added consulting services.

Costly Payment Processing

The website includes an extensive FAQ section and support forum, as well as live chat and phone support to reach customer service outside of normal business hours. Choosing a reputable third-party processor is an essential step in reaping the benefits of outsourcing your AP tasks. Outsourcing your accounts payable functions can give you the flexibility to quickly scale up or down, depending on changes in business needs. This leaves your AP team free to attend to the value-creation activities of the business. According to recent reports, hiring one employee can cost as much as $4,425. If your business is making do with paper invoicing and optical character recognition (OCR) to manage your AP processes, you already know the challenges of outdated systems.

• Accounts payable services set up and maintain AP automation software to ensure accurate data is reliably pushed to your accounting system.
• If your outsourcing provider charges by invoice, take extra caution to avoid duplicate submissions.
• In her spare time, she’s a self-proclaimed chef, lives in the middle of the woods, and has a frequent flyer card for birdseed and dog bones.
• Apart from streamlining invoices, accounts payable outsourcing companies also reduce the incidence of errors in invoices.
• So when the invoices stack up, it’s time to take a moment and create a game plan to scale your Accounts Payable department in the best way for your business.

Skilled outsourcing providers can make a company’s AP processes more efficient; thus improving the cash flow. Switching to another outsourced accounting services provider may be time-consuming and costly. Hence, selecting a credible outsourcing company to work with is essential.

For instance, you can implement Stampli’s best-in-class AP Automation software and train your team within days. It would take you a week just to set up introductory calls with outsourced vendors. If you truly just don’t want the headache of accounts payable and you’re willing to accept some of the limitations listed above, then outsourcing may be a good fit for you. When choosing to outsource AP, a company fractional cfos will need to hand over their historical data as well as any in-house documents, which some might find concerning. Its always best to research a provider’s privacy policies and security measures before engaging with them to make sure they meet your privacy requirements. There are two sides to every story, and that means there are some reasons way company might want to avoid outsourcing the AP process.

Outsourcing your accounts payable processes can help streamline payments and save on labor, time, and errors. Adopting an AP automation software can get you better control of invoice data capture, security, and help in better data analysis to increase business efficiency. But it involves incurring other costs such as investing in the software and allocating time for training the employees to use the software. The process of delegating ap outsourcing services to a third-party provider that handles the payment of a company’s bills and invoices is known as accounts payable outsourcing. This can include tasks such as reviewing and verifying invoices, processing payments, reconciling vendor statements, and resolving discrepancies. Over the years, we have built a comprehensive list of accounts payable processing services across industry verticals.

Or, you can choose to install intelligent AP automation software that poses little risk to your security. When considering outsourcing, develop a list of potential accounts payable outsourcing companies to evaluate for cost, capabilities, security, data privacy, customer service, and business strength. For many firms, the AP personnel tasks are not always as integrated into the business as another function such as operations, so it can be an attractive offering to outsource some of the paperwork. Of course, there are some downsides to using third-party accounts payable outsourcing services.

• Accounts payable outsourcing can be helpful for companies lacking the resources and automation software to manage their own AP process.
• Accounts payable outsourcing services are common with companies struggling to maintain a balance between vendor relationship management and liquidity.
• According to Ardent Partners’ Accounts Payable Metrics that Matter in 2020, the top challenges holding AP back are exceptions, lengthy invoice approval times, and too much paper.
• Inevitably, outsourcing requires you to hand over data to a third-party.

Corpay One calls itself “spend management” and specializes in helping fast-growing companies make their spending more efficient. They help to set up bookkeeping, streamline payments to your vendors, and allow you to manage your employees’ spend via custom controls. They also provide a Corpay Mastercard for your company and can assist with gaining lines of credit. Essentially, AP process outsourcing transfers tasks and responsibilities to another company for efficient management. AP automation uses business intelligence software to manage your in-house systems (with lower total costs on your part). This frees your in-house AP department to focus on higher-level tasks and attend to the core business processes that enhance your company’s performance and improve service levels.