Can’t Remember All the People You Have to Pay?

This is where Accounts Payable (AP) management comes in. Depending on the type of business you run, you may be working closely with other companies to buy products, goods, and services. If you find yourself having to manage a full-on vendor portfolio, then outsourced AP management is for you.

Similar to AR management, AP management is more than just paying invoices. It involves finding vendors to hire, working with their teams to set up a purchasing account, managing contract agreements and purchase orders, and, of course, paying the invoices you receive.

Whether you should consider outsourcing your AP management depends on whether your AP workload is large enough to justify outsourcing it. If you only work with a handful of vendors, you can likely manage on your own using something simple like a spreadsheet. However, if you find yourself working with numerous vendors for a variety of products, goods, and services to run your business, outsourcing is a great option.

For example, if you are the owner of a medical or dental practice, you will be working with vendors to purchase things like medical supplies, medical equipment, lab testing services, equipment maintenance and repair services, and more. Oftentimes, in this type of business field, when you work with vendors and purchase items in bulk or with continuous service, vendors will often set up an account for your business that includes a contract, specific purchase ordering methods, and payment terms.

It’s important to note that outsourcing your AP management does not mean that all of the above will be taken care of. Most of the time, outsourcing your AP management means you have a professional who will work with vendors to receive the invoices and process payment, and manage things like payment terms, aging statements, and even issuing 1099s at the end of the year. However, it is typically still the responsibility of the business owner and team to manage things like selecting vendors, setting up contract agreements, and sending purchase orders.

If your business is starting to grow and you are looking to outsource your Accounts Payable management, reach out to us today for a free quote.