An Overview On Outsourcing Accounts

An Overview On Outsourcing Accounts

Accounts Payable is one of the most frequently and popularly outsourced processes in the domain of finance and accounts. The vendor company has a lot of customized offerings for the clients to make the whole process, right from the transition of the process from the clients’ platforms to the ultimate service delivery, seamless. The process starts with scanning of the manual invoices to the format suitable for various ERPs to work. Once the invoices are scanned, they are loaded into the various ERP platforms on which the invoices would be processed. The whole purpose of outsourcing the AP process is to pay off the creditors on time. This is also to make the whole process compliant to various accounting standards providing timely transaction reports to be posted to general ledger as well as to handle various customer queries and complaints in a very organized and professional manner.

The service providers offer the service of a suitable accountant to the clients to manage the whole accounts payable process in an effective manner. Managing the daily inflow of invoices to be paid and tracking the due date of the same as well as ensuring the payment within time takes a lot of expertise, knowledge and managing skills. Also, there are a lot of approvals which are needed to be taken to pay for some critical facility invoices like electricity ensuring that the approval process does not delay the payment of the invoice, which may attract disconnection of the power.

The services of an accountant also include maintenance of vendor data as the ERP will recognise only the vendors which are already setup in the system. And for the same purpose if a new vendor appears on the invoice, the same should be immediately setup in the system with various approvals from the clients’ end. The monthly estimate of the cash outflow has to be made at the beginning to keep the fund available in the treasury so that the payment runs do not get hampered due to unavailability of funds. Visit this link for more info about the accoountant in Newton.

The service provider also takes care of doing the monthly reconciliations and reporting activities to the client for the purpose of Journal Entry creation. Apart from this, a supplier helpdesk is maintained which is completely devoted on attending suppliers’ queries via calls or emails. Nevertheless, the team has to be well informed about the whole process with proper information on the happenings as well as the working knowledge of the ERP platform being used. The outsourcing of AP process is undoubtedly cost effective and it is beneficial to the business houses as the service providers are bound by service level agreements to provide on-time and accurate service at all time.

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