Blog

Corcentric’s wide range of product solutions such as accounts payable outsourcing, invoice processing, as well as accounts receivable, makes us an essential part of the success of any company. With a relentless focus on the customer, Corcentric works with businesses to improve cash flow and achieve the operational efficiency they’ve been searching for. Outsourcing accounts payable processes can result in a loss of direct control over managing financial transactions and vendor relationships.

• A company purchases items on credit which then needs to be paid back in a set amount of time.
• Through AvidXchange and QuickBooks integration, users may automatically check purchase orders on QuickBooks with invoices received and processed on AvidXchange.
• However, whether your goal is to improve efficiency or cut costs, you must define it clearly at the start so that you may measure the performance of your outsourcer and set appropriate expectations for your company.
• Finally, when handling their accounts payable operations, firms have several alternatives.
• An AP outsourced business solution might sound like it operates more efficiently, so it can improve your bottom line.

For example, automation without improving the Accounts Payable process just makes a poor process go faster. Inexperienced teams also face challenges in identifying and resolving process exceptions that might break automation. The basic expectations are apparent and demand documented methods to ensure that bills are paid on time and correctly.

Your invoice processing costs are too high

To get the security tools and skills they need, many small to medium-sized businesses rely on the outsourcing services of larger and more sophisticated AP experts. 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. Although some of the differences related to these costs are based on the organizations’ industries, organizations that had adopted accounts payable automation tended to see reduced costs.

• An alternative to outsourcing to a company specializing in accounts payable is outsourcing to an individual or team of AP professionals.
• But no matter your focus, clearly defining your end goal is essential to measuring your outsourcer’s performance and setting the right expectations for your business.
• By investing in invoice outsourcing and consulting services, the integrity of invoices can be secured in a cloud-based platform.
• Many outsourcing firms far and wide are available to offer a multitude of services.
• Accounts payable outsourcing is the business practice of using a third-party vendor to administer invoice or bill related processes.

However, an outstanding partner should also have the tools and skills to help you work smarter in a post-pandemic world. The most well-known nearshore locations are in the United States, Egypt, and India. 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.

Depending on where the vendor is located or if they have a distributed staff, you may find one with near-constant uptime when they are utilizing technology like AP Automation. Potentially reduced costs – It’s possible that outsourcing your AP duties will be more cost-effective than hiring and training your own team. You won’t have insurance, pensions, or office space and equipment to worry about, so depending on your situation, outsourcing may save you money. When considering a major change to your processes, it helps to explore all your options. AP automation (discussed later in this article) may provide the efficiency and visibility of outsourcing while allowing your company to maintain control of its processes. This leaves your AP team free to attend to the value-creation activities of the business.

Accounts payable outsourcing alternative: BILL

Make sure you understand how the transition will occur, how you will know it’s completed, and how the outsourcer measures success. But an exceptional partner should also have the tools and expertise to help you work smarter in a post-pandemic world. Companies outsource their accounts payable operations in part to gain access to better tools and processes. nonprofit needs assessment Of course, this rapid change in processes can cause problems in-house, especially if your employees are used to your old procedures. If the outsourcing provider goes bankrupt or has a security breach, your company will be affected too. Your accounts payable process may be put at risk, and switching to another system can be expensive and time-consuming.

But by considering factors such as cost, scalability, and the level of control desired, you can make an informed decision about the best approach for your business. Businesses should establish clear communication channels and expectations with their outsourcing provider from the outset to address communication challenges. This may include regular progress updates, meetings, and clearly defined points of contact to ensure that any issues or concerns are promptly addressed and resolved. We are extremely pleased with the exceptional hospital billing services provided by Invensis.

They provide a range of services, such as invoice receipt and processing, vendor management, and payment processing, ensuring timely and accurate payments for their clients. When considering accounts payable outsourcing, it’s essential to understand the services provided by accounts payable outsourcing companies. They offer a range of technology, personnel, and value-added consulting services to help manage your accounts payable processes more efficiently. Some of the most frequently outsourced processes include invoice receipt and processing, vendor management, and payment processing. Accounts payable services providers and accounts payable consulting services offer different solutions depending on business needs, and not all of them are created equal.

Why Choose APS?

Outsourcers who outsource transition as an afterthought may jeopardize fure results. To avoid service gaps, you must adequately transfer knowledge from one team to another and maintain up-to-date documentation. Look for an outsourcer that wants to develop a long-term alliance with your company. Commitment to continuous improvement, as well as tangible business benefits, should be priorities. The best outsourcers are not only adept at the technical details of their sector but also able to identify and solve problems in the entire Accounts Payable lifecycle.

Tips for successful accounts payable outsourcing

Conduct a cost analysis to determine if outsourcing your AP processes could improve efficiency and reduce operational costs. 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. As the business world becomes more competitive, companies continually look for ways to improve services and increase cash flow. Following the rationale that time is money, businesses use outsourcing to make the most of internal employee time. Communication challenges can arise when working with an outsourced accounts payable provider, particularly if there are language barriers, time zone differences, or lack of clarity in communication.

Improved efficiency

One of the biggest benefits of outsourcing accounts payable processes is the potential for significant cost savings. The improved efficiency mentioned in the previous point will lead to savings in several areas, such as reduced invoice processing costs and increased vendor discounts. Improved efficiency in accounts payable processes can also lead to better cash flow management and a more strategic use of financial resources. Outsourcing accounts payable processes can lead to significant improvements in efficiency for businesses. By leveraging the expertise and technology of a third-party provider, organizations can streamline their AP workflows and reduce the time spent on manual tasks such as data entry and invoice processing. Efficient invoice receipt and processing can lead to cost savings and improved accuracy, reducing the likelihood of manual data entry errors and facilitating better cash flow management.

They utilize artificial intelligence and machine-learning algorithms in their smart-scanning and exception-handling technology, ensuring efficient and accurate invoice receipt and processing. Before outsourcing AP, review your provider’s privacy policy and data security measures to ensure they meet your standards. If you handle sensitive financial data, rights reserved information, or other proprietary data, be sure your outsourced provider can live up to your privacy needs. 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.

Scalability and the ability to quickly expand your work services

Accounts payable (AP) outsourcing is entrusting your organization’s accounts payable processes to a third-party company specializing in managing accounts payable. This can range from invoice receipt and processing to vendor management and payment processing. AP outsourcing firms will be handling their client’s accounts payable in real-time, and there isn’t always an opportunity or bandwidth to run everything by an internal accounts payable department.

The use of AP experts and sophisticated technology helps them identify risks and reduce the incidence of fraud. Outsourcing your accounts payable processes may be cost-effective for a business. In-house AP processes require hiring people, investing in training materials, and equipment/software which can be quite expensive for a business.