As your business grows or undergoes changes, your accounts payable outsourcing needs may evolve. Choose a provider that can offer scalable solutions and adapt to your changing requirements. Inquire about their ability to handle fluctuations in workload, accommodate process changes, and provide additional services as needed. As vendor relationships grow ever more complicated, more and more businesses will need to rely on outsourced providers to re-architect their accounts payable operations.

Dependency on the Service Provider

Countries like Costa Rica have over 300 multinationals with Finance Shared Services Operations supporting North America, The Americas, or in some cases the globe. Accounts Payable is part of the scope of these shared services, in addition to Accounts Receivable and General Accounting that are also very common to find. Finance outsourcing is exploding in the wake of the pandemic – and Accounts Payable (AP) is often the first function CFOs shift to a trusted BPO partner.

In-house operations often require substantial investment in technology and infrastructure. A robust AP software suite alone can cost upwards of $10,000, coupled with maintenance and upgrade fees. By transitioning to an outsourced model, businesses can expect to see a reduction in overall AP costs by as much as 70%, a figure drawn from our extensive experience and market analysis in the field. An example of an accounts payable is when a company owes money to vendors for goods or services, such as transportation costs, raw materials, leasing fees, and software subscriptions. By selecting a reliable provider and implementing additional security measures, businesses can reduce the likelihood of data breaches and financial losses. With less scale, smaller enterprises need more flexibility from outsourcing partners than multinational corporations.

How AP Outsourcing Works

Businesses working with Accenture can benefit from cost-effective solutions and a high level of expertise in managing their accounts payable processes. With over 18 years of experience in the industry, ILM ensures high-quality AP outsourcing services, with expertise in all major payments and ERP systems. In addition to invoice receipt and data capture, ILM also offers services such as PO matching, invoice processing and routing, disbursement, accrual, general ledger, and archiving functions. The, significant time zone differences also negatively impact communication and responsiveness, with internal and BPO teams often working opposite hours. Improving quality and automation, cutting costs, gaining access to a more stable pool of qualified talent, and freeing up internal teams for higher-value activities are common drivers. 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.

Outstanding Benefits of Help Desk Outsourcing

1. In AP outsourcing, activities such as managing short-term debts and creditors are conducted by qualified third-party AP teams.
2. But evaluating your options with a complete understanding of what’s available leads to better business outcomes.
3. A reputable provider delivers instant access to accounts payable best practices, best-in-class talent, and automation tools that maximize AP performance while giving internal teams the bandwidth to become true business partners.
4. Below are our top tips for three areas to consider when choosing the best AP outsourcing provider.

ILM is a Virginia-based provider of accounts payable services to commercial clients, government entities, and nonprofits. They utilize artificial intelligence and machine-learning algorithms in their smart-scanning and exception-handling technology, ensuring efficient and accurate invoice receipt and processing. To ensure a high quality of work, exceptional providers will also track a broader scope of AP key performance indicators (KPIs) like cycle time and number of invoices processed per FTE.

Accounts Payable Process

This information is then used to develop a customized solution that aligns with the client’s specific needs and business objectives. Mid-sized businesses don’t often have the luxury of employing a robust team of security experts, nor do they have the resources to run extensive audits and eliminate risks. To get the security tools and skills what is a secured credit card they need, many small to medium-sized businesses rely on the outsourcing services of larger and more sophisticated AP experts. Every business has unique needs, and your AP service provider should be able to tailor their services accordingly. Whether it’s handling different types of invoices, integrating with your existing financial systems, or scaling services in line with your business growth, the provider should be flexible and adaptive.

Following the rationale that time is money, businesses use outsourcing to make the most of internal employee time. Proper preparation is crucial for a smooth and successful transition to an outsourced accounts payable model. This includes internal alignment and communication to ensure all stakeholders are informed and on board with the change. Additionally, data migration and system integration must be carefully planned and executed to maintain data integrity and minimize disruptions. Review the provider’s service level agreements (SLAs) and performance metrics to ensure they align with your expectations. SLAs should clearly define the provider’s responsibilities, turnaround times, accuracy levels, and other key performance indicators (KPIs).