Accounts Payable has always been a cost centre for businesses for time immemorial now. However, advancement in AP technology has been helping businesses in transforming it into a revenue generator and strategic partner. But not every business realized the opportunity due to a lack of access to the right technology and AP expertise.
However rapid insurgence of outsourced Accounts Payable Services is now changing the AP game for every business. If you are a business that is yet to leverage technology to improve your AP performance then you must seriously consider outsourcing Accounts Payable and why? Let us find out in this blog today.
Today we first go through the common challenges faced by businesses today. And then let you know how remote accounting firms like Back Office Accountants can help solve those challenges with outsourced accounts payable services. Read on:
Accounts Payable Challenges in 2023:
Preventing fraud: It’s 2023 and still, businesses are finding it to tough prevent Accounts Payable fraud. Billing schemes, check fraud, kickback schemes, ACH frauds, expense report frauds and more, conventional fraudulent practices now got upgraded due to easy access to technology. Fraudsters equipped themselves with the latest tools of the trade that enable them to rob hard-earned dollars and businesses that lack the right technical heft are the ones that are now most vulnerable to AP fraud.
Dropped productivity due to manual practices: Manual tasks in Accounts Payable waste valuable time and resources. Not only do they cost a lot of time and money, but they also add the additional risk of errors, and re-work and make businesses susceptible to fraud. Manual operations also reduce the productivity levels of AP teams that now wants to get stuff done with lean teams.
Lack of healthy vendor relationships: For a business, maintaining healthy vendor relationships is as important as cost optimizations. Yet most businesses due to inefficient invoice management fail to maintain harmonious collaboration. In an ideal situation, this is not difficult to achieve, but invoice processing problems caused by manual processing can create problems every month in paying vendors at the right time. Without the right vendor relations, it is difficult to achieve cost efficiency in the longer run.
Inability to use data for AP optimization: Accounts Payable produces tonnes of data which when mined can provide insights that can be used to improve the overall process. Today businesses are actively leveraging data analytics to find insights that aid in making data-driven decisions.
Advanced AP data analytics can help today’s businesses to identify bottlenecks in the AP process, allocate time &resources, and identify unnecessary spending to optimize cash flow and improve supplier relationships. Businesses that do not employ AP automation forever lack the ability to make data-driven decisions and optimization that improve their overall AP process.
However not every business is equipped with the right AP automation tools to automate the process, let alone leverage AP analytics. Even businesses that do will have equal expertise in AP and AP technology to fully leverage the benefits AP automation offer. This is when outsourcing Accounts Payable can help businesses and how? Read on to find out:
Benefits of Accounts Payable Outsourcing:
Access to the right AP technology tools: Remote accounting firms are equipped with specialised AP tools that can readily automate key steps or complete the AP process. Businesses can now leverage tools that may not be too practical to own by outsourcing their accounts payable.
The way into the best AP talent available: It is always been about the hand that wields the hand than the sword itself. So the right AP strategy must always precede AP technology when one needs to transform their AP process for good. For example, at Back Office Accountants our AP experts create a customized AP process that is in line with the goals and objectives of the business and then pick the right tools that can ensure consistent performance. While tools are available to everyone, the right AP expertise is elusive without a dedicated in-house AP department. By outsourcing Accounts Payable, a business can get access to the best AP professionals in the market effortlessly.
Flexibility and scalability: Outsourced Accounts Payable services can be scaled up and scaled down based on the specific requirements of the business. This flexibility is not found in setting up an in-house AP department which can be quite expensive during the offseason. The flexibility of scaling up and down is particularly helpful to small businesses that aim to improve their financial performance ad gain a competitive edge.
Outsourced Accounts Payable Services help solve all the problems commonly suffered by businesses today. The unique benefits offered by outsourced Accounts Payable Services can help a business turn its Accounts Payable into a revenue generator and strategic partner without the risk of heavy investment. If you are a business that is looking for high-ROI outsourced Accounts Payable Services, you can contact us here: https://www.backofficeaccountants.com/