This means that they receive nothing but paper invoices, manually check them for errors and code them, and then carry them to the proper employees for approval by hand. After the invoice is manually approved, it will then often be paid via check. Paper-based processes have several disadvantages.
For one, relying on manual labor to accomplish all of these tasks can get you into trouble when it comes to scaling. During periods of rapid growth, your company may be held back by your accounts payable team. This frequently occurs because the team is overwhelmed by the mile-high stacks of paperwork on their desks. Paper processes are also more vulnerable to fraud and security breaches. Paying invoices through paper limits the options your suppliers have and can damage your relationship with them, as mail-courier delays can cause late payments. Nobody’s perfect, and when there are hundreds of paper documents to deal with, the odds of simple human error causing havoc are much higher.
For all these reasons and more, many accounts payable teams look for an accounts payable company that can provide them with services or software that can digitize the invoice management process and allow for instant payments to suppliers. Excellent accounts payable management services will facilitate your goals without completely eliminating your control. Ideally, any software the company provides will also be easily integrated into your accounting system. The goal of automation is not simply to add a digital component. That’s why effective accounts payable software actually makes the job easier by performing certain tasks automatically, such as checking for errors and sending the invoice to the proper employees for approval. Digitization reduces the potential for fraud and human error to impact your accounts payable processes and can dramatically increase the efficiency of your team.
One example of an accounts payable services company is AvidXchange. We provide a SaaS solution specifically designed to help middle-market companies embrace the opportunities provided by computerized invoice management so that they can scale and succeed.
Accounts Payable Outsourcing Providers
Accounts payable outsourcing providers are a specific type of accounts payable services company. Instead of providing services or software to help you manage your own accounts payable, finance and accounting outsourcing companies provide a staff of experienced employees who will do things like invoice management for you. This can sometimes be a more affordable option for a start-up company because you do not have to spend time and money on hiring experienced people in permanent positions in your organization. Inevitably, however, outsourcing will often result in a loss of visibility and control over your processes. It is also vital that you find a high-quality outsourcing option. Some invoice processing outsourcing companies may not have the most experienced people. It’s important to remember that an outsourcing company makes the most money by using canned processes and training. This means that they take a one-size-fits-all approach that may not work well with your business or team. Invoice management and accounts payable is too important to just hand off to an organization that you haven’t thoroughly vetted. This is also crucial because the employees of this outsourcing firm will have complete access and control over the invoices coming into your organization. If the outsourcing company is not of the highest quality, your company’s private information could be compromised and important relationships damaged by mistakes. All of these factors need to be considered when comparing accounts payable outsourcing providers.
Accounts Payable Services Providers
There are many accounts payable services providers in the marketplace. Some accounts payable companies may focus on one specific aspect of the accounts payable process, while others may offer you the option to completely outsource the whole thing. What works best for you and your team will vary depending on a variety of factors. However, there are certain things you should look for in the top AP services companies. (Incidentally, AP is short for accounts payable.) One of these things is cloud access. Nowadays, remote work is becoming the norm and more workers are demanding the ability to do their jobs from anywhere. Having a software or service solution based in the cloud meets this demand and gives you 100 percent visibility over your processes no matter where you are in the world.
Another feature you should look for is ease of use. An automation solution provided by an accounts payable services provider is not going to increase your efficiency unless invoices can be reviewed, coded, and approved for payment within just a few clicks. The best accounts payable provider also has the experience you can trust and strong relationships with businesses in a variety of industries. AvidXchange is a great example of a company that has all of these features and characteristics. With a supplier network of over 825,000 different companies, we know how to help you process invoices efficiently and get suppliers paid quickly.
Accounts Payable Services
Going online and looking for an accounting services price list can be a way to compare services and prices that accounts payable companies generally provide. Usually, these services will center around various elements of the invoice management process. There are really only two options when it comes to looking for accounts payable services: automate or outsource. It’s important when comparing accounts payable outsourcing companies to identify if they have the resources needed to provide a smooth and effective service. For example, is the outsourcing company using automation software? If they are not, then they may become a bottleneck during times of extreme growth, and you will have hired an outsourcing company for no purpose. You’ll want to weigh the accounts payable pros and cons and look at automation as compared to outsourcing. The right kind of automation can make processing invoices faster, easier, and better while offering you complete control. Something else you should remember about outsourcing is that once you hire a company you then become dependent on them for your invoice processing. If something happens to that company or to that team, your entire accounts payable could be disrupted. Many companies may choose to avoid these pitfalls by going with a SaaS solution that automates accounts payable. One example of a solution like this is AvidXchange. Our suite of solutions gives you the ability to process invoices electronically and pay them using e-payment systems.
Top Accounts Payable Outsourcing Companies
The top accounts payable outsourcing companies have a large staff of experts who can handle all your accounts payable needs. They are also easy to communicate with. This means that their team is located in a time zone that is easy to work with and all team members speak the same language as you so that there are no misunderstandings. Finance and accounting outsourcing companies will often provide a variety of services, eliminating the need for you to have your own accounts payable team. This can also make it easier for your business to scale because you don’t have to worry about handling the additional paperwork. As we have already mentioned, the best invoice outsourcing and consulting services also rely on some form of invoice management automation. This means that you can get the benefits of automation without having to invest in your own software and training your own employees to use it. Invoice processing outsourcing may sound like a great idea, but it’s important to carefully consider all your options when it comes to the top AP outsourcing companies.
Outsourced Accounts Payable Services
We have been looking at the pros and cons of outsourced accounts payable services. One of the chief benefits of using these accounts payable services is that they can be far more affordable than hiring your own team to handle all the paperwork. Your team may find, however, that instead of outsourcing and consulting services, you may want to look into using automation technology for your team. Automation technology can give you more control over your invoice management process than accounts payable outsourcing. Instead of deciding to outsource bookkeeping, why not go with software that makes it so easy to manage and track invoices, the entire process can be done with just a few clicks? That’s exactly the kind of solution AvidXchange provides.
Accounts Payable Consulting Services
Accounts payable consulting services are different from outsourcing. Using business consulting services refers to the hiring of experts who can help guide your team to follow best practices when it comes to accounts payable. They might recommend the best software to use and then help the team get the most out of it, for example. What is a consultant? They are an expert in their field who is hired for their ability to provide guidance and leadership in a particular area. What is consulting? Consulting is a practice wherein experts help organizations improve their performance. Instead of hiring a consultant or outsourcing, the best way to manage invoices and improve the performance of your accounts payable team may be to start working with an automation solution like AvidXchange that offers so many different benefits.