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How to Outsource Your Accounts Payable in 5 Key Steps

Author

Monica Neumann

https://www.linkedin.com/in/monica-neumann-pmp/
monica.neumann@auxis.com

PMP | Sr. Manager - Finance Transformation

Finance outsourcing is exploding in the wake of the pandemic – and Accounts Payable (AP) is often the first function CFOs shift to a trusted BPO partner. But with so many possible paths, many finance leaders struggle to understand how to successfully migrate the AP function.

Even before COVID, the drumbeat had started to modernize Finance Departments by offloading transactional, low-value work. But the pandemic accelerated the pace – creating mounting pressure for CFOs to minimize costs, maximize productivity, adjust to a remote workforce, and increase their team’s focus on more strategic activities.

At many enterprises, the AP function is ripe for improvement: dominated by manual, paper-based processes, a lack of standardization that drives high exception rates, and poor operational visibility that makes upgrading performance a challenge.

In bottom-performing departments, late payments are all too common as invoice approvals drag for 30-90 days and AP staff waste about a quarter of their time chasing down missing or inaccurate information. Finance & Accounting unemployment levels have also reached record lows in the U.S. – increasing wages and driving high turnover that impacts consistency and errors.

Outsourcing your accounts payable function resolves these challenges and more, with Deloitte reporting that 65% of successful organizations include outsourcers in their delivery model. A reputable provider delivers instant access to accounts payable best practices, best-in-class talent, and automation tools that maximize AP performance while giving internal teams the bandwidth to become true business partners.

AP outsourcing is a proven path to modernizing operations and accelerating digital transformation – when it’s executed properly. Here’s how to outsource your accounts payable function for long-term success: