Outsource Accounts Payable Service Provider in India - Finsmart

Accounts Payable Outsourcing Services

Finsmart Solutions Accounts Payable Processing Solutions are flexible and provide clients with the capacity of scaling up their internal team to focus more on core activities.

What is an Accounts Payable Outsourcing Service?

Accounts Payable, also referred to as AP, refers to a business department or branch responsible for making payments owed by the client’s company to other small suppliers and creditors. When a business decides to hand over this Accounts Payable process to a third party, it is known as Accounts Payable Outsourcing.

Accounts Payable Services Provider in India

Finsmart, as an accounts payable outsourcing provider in India, works as your onsite/virtual team transforms your accounts payable function into an efficient automated process. Besides, vendor queries and communications are handled on your behalf, which truly frees you up from day-to-day liaising and coordination tasks.

Finsmart solutions has a team of experienced accountants who work under the expert guidance of qualified Chartered Accountants.This helps us manage your complete day-to-day accounting functions On-site or Remote under our outsourcing accounting and bookkeeping services model.

Additionally, we have worked on the accounts receivable project and helped our clients manage the receivables in books of accounts, and contributed to the clearance of the outstanding.

Our team effort has helped us become one of the top accounts payable outsourcing companies in India.

Accounts Payable Services Process

The basic accounts payable process includes three documents in general: the purchase order (PO), goods receipt, and vendor invoice. The organization’s purchasing department sends the PO to a vendor with information regarding the requested merchandise, quantity, and price to initiate a purchase.

Upon receiving the goods, a goods receipt document is generated, which has information like shipment, including any damages or quantity disparity. The vendor sends a vendor’s invoice for getting the payment of the goods. The accounts payable department receives the vendor invoice, and the payment to be paid to the vendor is started.

Step 1

Invoice Receipt

Customer’s Electronic Invoices are received.

Step 2

Data Storage

Image and Data Capture: All documents are stored as images and all invoice images are viewable.

Step 3

Process and Route

Invoice documents are processed according to agreed business rules with the customer. Invoices are routed to the relevant customer executives for approval.

Step 4

Book and Archive

The invoices are posted to relevant GL after deduction of appropriate taxes.

Step 5

Report

Periodic reports with details of overall spent, cost centre wise spent or product wise spent can be shared with agreed frequency

5 Key Benefits of Outsourcing Accounts Payable Business Process

Outsourcing the accounts payable solutions doesn’t only mean transferring responsibility but it is also about deciding to work with a third party that helps in providing value to your business.

It also helps in improving your accounts payable process. The most common benefits of outsourcing accounts payable function include:

1. Cost-cutting:

Having or hiring your in-house accounts payable staff and all the software or programs they require can sum up to a large amount, i.e. it can be costly for a company. Having the services handed over to a third party can result in having experienced and well-equipped accounting professionals to do the same job but at a comparatively lower cost.

On the other hand, you will also reduce the transactional cost for AP processing because outsourcing might pay by the number of invoices instead of by the hour.

2. Standardization:

Most accounts payable outsource service providers use completely automated processes combined with their years of experience in the accounting field. Additionally, all your invoice copies and statements are processed quickly. That’s what their expertise is in, and this is what their core services are.

In short, the company you outsource this work to, Accounts Payable can do this task in very little time, efficiently, and in a standardized way, reducing the normal paperwork that the in-house accountants do.

3. Less to no Errors:

Humans making errors can lead to costly consequences for the company. The common mistake made by many companies is that they use spreadsheets to track accounts payable, there is much possibility that errors are already present in the process.

However, when the AP Process is outsourced, the companies use automated processes to make fewer or no common errors in the process.

4. Constant Coverage:

An in-house AP department would require hiring a supervisor who will look after the handling and scheduling issues in the absence of the employees.

An outsourcing firm has cross-trained employees working on accounts and maintaining common standards. So you can be completely hassle-free about anything not being covered.

5. Timely Payment to Vendors:

For a small and medium-sized business, having a timely and proper cash flow is important due to limited cash resources. Having a proper timely AP process helps in the company’s appropriate working and saves small businesses from incurring huge losses.

The outsourced AP company helps pay the outstanding dues in time, thus also helping maintain a healthy relationship with the vendor or supplier.

Why Outsource Accounts Payable Services to India?

At Finsmart, we use advanced workflow, industry best practices, and standard quality. We provide all our customers with minute-to-minute information on the process stage invoice, approvals exceptions, and the organization’s outstanding liabilities.

Our 24×7 customer facilitates proper response to vendor enquiries. We also maintain the maximum security of customer data.

Here are a few 5 key reasons why you should consider outsourcing the AP services to India:

☛ A combination of the latest technology and outsourcing reduce on cost significantly
☛ On-time payment eliminates the hassle of late fees, and also you might get discounts for making payments early
☛ Complete visibility of the invoice status, open invoices, paid invoices through a variety of reports
☛ View co-relations between checks issued & invoices that have received payment
☛ A systematic record of all invoices for audit purposes

Related Questions

What are accounts payable?

The amounts that are due to the vendor for goods or services that are not yet paid for.

The total sum of all the outstanding amounts that are pending by the company to the vendors is known as accounts payable.

It is recorded in the balance sheet as Accounts payable under the Liabilities section.

What are accounts payable and accounts receivable?

Accounts receivable is the current asset account department that keeps track of the amount that is to be received from any third parties.

Again, these third parties can be banks, companies, or even people who borrowed money from you. One common example is the amount owed to you for goods sold or services your company provides to generate revenue.

The accounts payable are exactly the opposite of the accounts receivable, but you owe the money to third parties. The accounts payable comes under the asset section in the balance sheet.

What are the accounts payable process?

The accounts payable department has a set of procedures to follow before making payments to the vendor. These guidelines are important because of the value and volume of transactions.

The process involves:

☛ Receiving the bill: If goods were purchased, the bill helps trace the quantity that is received.
☛ Review bill details: The accounts payable department ensures that the bill includes vendor name, authorization, date and verifies and matches the requirements to the purchase order.
☛ Updating records after bills are received: Ledger accounts are needed to be updated based on the received bills. The manager’s approval might be required at this stage with the approval hierarchy attached to the bill value.
☛ Making timely payment: All payments are processed before or at the due date on the bill, as agreed upon between a vendor and a purchasing company. Required documents are prepared and verified. Details entered on the cheque, vendor bank account details, payment vouchers, the original bill, and purchase order needs are scrutinized.

Why are accounts payable important?

Accounts payable management is important for any business because it takes charge of clearing the entity bills on a timely basis, which helps maintain a strong and long-term credit relationship with the vendors.

When there is uninterrupted cash flow, then only the vendors provide an uninterrupted supply of goods and services.

Good AP process ensures that there are no overdue charges or late fees charged. Frauds and thefts can be avoided by following the standard accounts payable process.

How to outsource your accounts payable?

You are just one click away from outsourcing accounts payable and receivable services; Fill the contact form or contact us on +91 98224 06432, and our experts will get in touch with you.

Reviews

What People Say

Our clients have always trusted our expertise when they outsource accounts payable services. Here’s they shared experience about our accounts payable services.

Software Platforms

We Work With

The main challenge in appointing accounts payable outsourcing service providers is the knowledge on different software’s. Over period of time we have developed capabilities to work on different MIS and ERP platforms like QuickBooks, QuickBooks Online, Xero, Sales force, ZOHO, Oracle, SAP, Microsoft Dynamics, Sage, Time maker etc. including customer’s customized software’s.

Our Team Is Trained On

Smart Accounting Add ons

Finsmart Solutions is advance technology accounts payable outsourcing service providers in India as we works with a variety of cloud add-ons to provide you with world-class service in accounting. Our expertise helps our clients to outsource accounts payable services from any part of the world.

Have Questions?

FAQ'S

How does Outsourced Accounting work with Finsmart Solutions?

With new technology, working as your virtual/outsourced accountant/partner has become simple. You can opt for any of the following delivery models: Remote, Visit Based Or Dedicated Resource and we would be able to customize the solution accordingly. Our team is well trained to work on the accounting software of your preference ensure deliveries are met as per the set date plans.

What time zone you work in?

We have the flexibility to work in any time zone as preferred by the client, be it real-time, overlapping time or offshore time.

What is your cancellation policy? What if I prepaid for the year?

We want you to work with Finsmart Solutions because you’re happy with the service, not because you signed a contract. You can cancel anytime with one month notice period

Can I speak to someone who has or is working with you?

Yes of course! We want you to be sure that you are making right decision by choosing us and hence we would be glad to share our references with whom we are working with.
However this can be done post our initial discussions about your service requirements and our proposed service offering.

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