Do you have a hard time keeping track of your vendors? Do you feel like you’re scrambling to get payments out? Outsourcing accounts payable may be the answer.
If you want to know more about the benefits of outsourcing, check out our blog on those benefits here. If you feel like you’ve got accounts payable handled, but need a little help managing your payroll, check out our blog on outsourcing payroll here.
What Is Accounts Payable?
Accounts payable, also known as AP or just “payables”, refers to your company’s outstanding bills. Usually this means payment owed to vendors or creditors. Some examples include vendor invoices, legal fees, or contractor payments.
The part of AP that is most complex is establishing a standard process for your payables. Having a process in place that accounts for all the unique parts of your company is essential to minimize stress.
Why you Should Consider Outsourcing Accounts Payable
- Focus on relationships. By outsourcing AP, you separate yourself from the conversations about money. This way, you can keep a positive relationship with outside vendors.
- Signals growth. Outsourcing accounts payable means you have a dedicated department to handle your AP. To outsiders, this gives you an increased sense of credibility. This is particularly important to vendors, who may like the extra assurance that they’ll be paid for their products or service.
- More oversight. Outsourcing accounts payable gives you an extra set of eyes to make sure that all payments are accurate and timely.
Outsourcing Accounts Payable with Encurio
- Discovery. To understand AP, first we have to understand your accounting as a whole and the AP processes you already have in place. What type of vendors do you work with? How do they submit invoices? How do you process them? How do you pay vendors?
- Change. After learning about your current process, we will recommend adjustments to improve the process for you AND your vendors.
- Continuing Communication. Nothing is perfect the first time. Expect an adjustment period! Generally within 6-8 months we reach a point where your processes are as close to perfect for YOU as possible. Communication is the key to helping us understand the nuances of your business and your needs.
- Growth minded. Structured processes are the foundation of every business. Our priority is helping you build processes that will help you succeed into the future. When the time comes to bring your AP back in house, there’s already a structure in place that makes the transition smooth for you and your vendors.
What’s Left on Your Plate
- Approval. Before payment goes out, someone on your team must approve the payment. This doesn’t have to be you! You can designate someone on staff to give the final go-ahead on your behalf.
- Funds. It’s your responsibility to make sure that we have the funds for each payment you approve.
- Communication. Beyond establishing your processes, timely communication is essential to make sure you’re receiving the best level of service! Without communication, processes can’t keep running.
The Road to Peace of Mind
Small business owners are often forced to juggle several roles as their company grows. Outsourcing accounts payable to someone you can trust gives you the space to focus on other aspects of your business. Giving up control of such an integral aspect of your company may be scary, but the benefits far out weigh the growing pains.
If you’re in over your head with your AP and looking for relief, consider setting a meeting with us to see what outsourcing accounts payable can look like for your business.