In house VS Outsource Accounts Payable Request for Quote
What Is Accounts Payable?
In today’s rapidly growing world, "accounts payable" is a term you hear often when managing the finances of any business. Accounts Payable is a term used to represent the department of a company that takes care of the money owed by the company to suppliers or its vendors.
Challenges of In-House Accounts Payable
In today’s scenario, the in-house accounts payable domain has begun to carry out more tasks, such as reviewing, checking, and approving the invoices or claims for all kinds of payments. It has become a difficult task for small companies or newly start-ups wherein invoices come in huge numbers each day. So, monitoring that activity turned out to be challenging for the in-house accounts payable department.
The in-house accounts payable department deals with a wide variety of issues on a regular basis. The AP department's responsibility is to make payments on time to its vendors. But somehow they face issues in processing a single invoice, and it takes many steps. And in between they made many mistakes, so because of that, their activities were hampered.
However, as with business functions, there are a few more obstacles that the in-house accounts payable department faces while processing, which leads to negative consequences for the company’s businesses. Such as late payments, errors in invoices, and duplicate payments.
Accounts Payable Outsourcing Makes It Easy - End to End Invoice Processing
An outsourcing provider will have the resources to align and streamline accounts payable processes. So, from managing a bunch of invoices, claims, and other accounts payable documentation, it gives in-house professionals the liberty to focus on other crucial business activities.
Outsourcing companies keep track of all the payable activity so that organisations avoid late fines and don’t negatively impact their credit scores. Outsourcing AP activities gives you faster and much more efficient results, which leads to fast processing of invoices.
With an in-house accounts payable team, a manager faces the situation where an employee is on leave and no one is there to handle the dedicated activity. But when you outsource the activity, the company cross trains the people on AP activity and daily standards so that no one should be worried about the pending work and follow ups.
An outsourcing company gives you that relief, so you don’t have to worry about the invoices, errors, daily follow up, etc. By outsourcing the accounts payable, it allows you to fully focus on your core business activities rather than thinking about AP activity.
Oh, and it goes without saying that responsible accounting prevents overpayment, fraud, and ensures compliance and credibility, all of which are imperative to what matters most to successful growth.
The topmost advantages that Osource will surely provide are:
Focus On Growth
You must have dedicated professionals to look after the process of accounts payable. And this activity includes matching invoices or claims, follow-ups, and processing, which is a very tremendous work for them. Now just imagine that outsourcing AP activity to a specialist surely gives you the results. And professionals who are busy with their tedious and tremendous tasks can now easily provide you with revenue-generating results.
You will get efficiency through the SLA’s. A good SLA will always make sure that your work is well organised, reliable and meets the standards. Outsourcing companies make sure that you’re meeting the goals and objectives as per the parameters you have set. AP outsourcing firms use their expertise and knowledge to improve performance in areas such as error rate, follow up, duplicate payments, and so on.
Expertise of a Service Provider
The expertise of the service provider gives leverage to the client by picking up their current process flaws and streamlining the process according to the provider’s years of experience. A good service provider delivers these valuable benefits as per their expertise.
With an effective and robust account payable process, Osource helps its clients maximise their profits and thrive in rapidly changing economies by enabling them with working capital optimization, generating cash savings, managing and planning cash flows, and enabling long term supplier relationship management.