What is Accounts Payable Outsourcing?

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

Table of Contents:

1. ☛ Accounts Payable Services Provider in India
2. ☛ Accounts Payable Services Process
3. ☛ Benefits of Outsourcing Accounts Payable Business Process
4. ☛ Why Outsource Accounts Payable Services to India?
5. ☛ Questions about Accounts Payable Services

Accounts Payable Services Provider in India

Finsmart, as an AP outsourcing company in India, works as your onsite/virtual team handling 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 have a team of experienced accountants who work under the guidance of qualified Chartered Accountants. This helps us manage your complete day-to-day accounting matters On-site or Remote under our outsourcing accounting and bookkeeping services model.

Additionally we have worked on Accounts Receivable project and helped our clients not only manage the receivables in books of accounts but also contributed in clearance of the outstanding.

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

5 Key Benefits of Accounts Payable Business Process Outsourcing

Outsourcing the accounts payable solutions doesn’t only mean transferring responsibility but it is also about making the decision 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 includes:

1. Cost-cutting:

Having or hiring your own 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 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 of Accounts Payable to can do this task in very less time, efficiently, and in a standardized way, also 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 processed 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:

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

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