Accounts payable or AP is simply something that a company owes that needs to be paid. Its the opposite of accounts receivable, From refunds to debts, to loans, anything that a company owes and needs to be paid regardless if paid full or partial, its considered as accounts payable. For a company, this is important because any delays in payables could mean potential trouble and with a company’s reputation is on the line, it should be taken very seriously.
The problem is that this is just one of the problems that companies are always struggling to take care of, not just with companies that are having a hard time keeping up with their payables, but because if you are a person owning a business, this isn’t your focus. Your focus is to make a profit and not lose some of it because of obligations and you want this as the least of your problems.
The traditional way:
The traditional way and what has been done over the years is by hiring people to come in and solve accounts payables and keep it in order. If you are a company that has a ton and a ton of paperwork, you need people that will sort all of it and help keep track of everything. This is not just because its an obligation but its also an essential data for your financial reports.
The advanced way:
The advanced way is to invest in people, process, and systems to be used to organize everything and keep everything efficient. Not all companies will opt for this unless they really have a big account payable that is in dire need of an upgrade. On all things, this is the most costly since businesses have to either make or buy a 3rd party software to manage everything, build process around it and hire the brightest minds to organize it and make it work by tailoring it to a company’s needs and demands.
The better way: Today, the above mentioned are still applicable but there’s a better way that a company is able to get the people, the process, the tools and results at a very low cost and that is by outsource payment services. By doing so the company is able to save money. The services are very cheap and yield’s great results, this is one of the reasons why many outsourcing has been really successful.
Outsourcing accounts payable tasks is a new business model that has been utilized by various business and this is because accounts payable is a no simple thing. Its company credibility and while accounts payable isn’t part of the vision and goal, it’s always part of company liabilities and reports. By outsourcing accounts payable services, a company will no longer need to hire a ton of professionals, buy a system and make a process because everything is offered by an outsourced service that is ready to use. If you think that you’re a company is struggling with accounts payable, you might want to consider your options in outsourcing such services.