Managing your supplier and vendor relationships takes time and can be challenging; and the more vendors you have increases your risk of costly errors in your accounts payable process.
If you’re struggling to manage a complicated, manual accounts payable process outsourcing may be a tempting option for your business. Before you can make that decision, you need to understand outsourcing and balance the pros and cons of hiring outside help.
What is accounts payable outsourcing?
Simply put, accounts payable outsourcing is when you hire another company to manage your company’s accounts payable process. These providers have all the necessary tools and technology to execute all your business’s accounts payable functions.
Outsourced services can take many different forms, but they all share essential elements in common. The outsourced team needs a way to receive your bills / invoices, a system to enter that data and provide bookkeeping services, an approval process and payment functionality to authorize and schedule payments, and an integration to sync bill and bill payment information to your central accounting software.
Why outsource your accounts payable?
With the right provider, companies can streamline their business operations, refine their processes, and grow revenue. Reputable and first-rate providers will not only take over your tasks but will optimize them. An exceptional outsourced service will introduce new capabilities and develop more efficient business processes to enable this growth.
Benefits of outsourcing
While handing over the reins of your accounts payable workload may seem unnerving it does come with advantages when you outsource your accounts payable to a trusted partner. Advantages such as saving time and money, accessibility to new payables solutions and tools, improved workflow, and added security.
Optimizing technology and tools
The right outsourcing company will provide accounts payable services using automation and the latest technology and tools. This will in turn provide you all the benefits of updated technology at a fraction of the cost.
A more economical option
Outsourcing your accounts payable process is more economical than traditional solutions because there are no overhead expenses that come with an inhouse accounts payable option. These cost savings contribute to improved cash flow and the overall financial health of the business.
A stronger security opportunity
In many cases, outsourcing is the easiest way to eliminate paper invoices, checks, and receipts. Paper processing has long been one of the most significant sources of problems in terms of fraud for accounts payable professionals. Using the security tools and skills of an outsourcing service minimizes the possibility of fraud occurring.
Partner with Redmond Accounting
If you were offered more time in the day to focus on building your business while receiving a more accurate and optimized accounts payable process, would you take it?
My guess is that your answer is likely YES.
So, what do you think?
RAI is dedicated to fueling your success through automation and insight. We reduce your accounting workload, so you have more time for everything else. Find a solution by scheduling an appointment with us, LET’S MEET!
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