The Finance and Accounting Outsourcing market in the U.S. is estimated at US$18.3 Billion in the year 2021. The country currently accounts for a 45.7% share in the global market. (Strategyr)
Accounting functions require a specific skill set which makes accounting related tasks the top outsourced function, next to IT tasks.
Business owners seek to hire offshore teams to manage all financial transactions, from fixed payments and variable expenses to bank deposits and budgets, while allowing the business owners to save and do more.
Finance and Accounting Outsourcing
Finance and Accounting Outsourcing is outsourcing services to a third-party provider with a talent pool of qualified candidates who are well-versed in accounting principles, able to work comfortably with numbers, can adapt to a fast-paced work environment, have excellent accuracy, attention to detail, planning and organizational and communication skills. Aside from these the ideal candidate should also be well-versed in accounting softwares. Finance and Accounting Outsourcing is designed to supplement the business with accounting services.
An outsourced accountant can provide support to a company by contributing to the overall efficient operation of the Finance and Accounting department. Outsourced accountants can manage all financial transactions, such as managing fixed payments and variable expenses to bank deposits and budgets, processing invoices, maintaining accounting records, auditing financial documents and procedures, reconciling bank statements, and calculating tax payments and returns.
Outsourcing finance and accounting services provides remote day-to-day accounting support as effectively as in-house accounting departments
Another term used in the same context as Finance and Accounting Outsourcing is Finance and Accounting Offshoring. The key difference is that the location of the outsourcing provider is taken into consideration. Finance and Accounting Offshoring is a type of outsourcing which is the process of businesses hiring, building, managing a dedicated team or staff through an outsourcing partner located outside a company’s geographical location to support business processes.
Accounts Payable Outsourcing
By definition, Accounts Payable is the finance and accounting term defining goods or services a company owes to suppliers or service providers which are purchased via credit. These accounts payable are subject for payment or clearing within a defined timeline therefore there must be proper accounting and management to avoid corresponding penalties.
Accounts payable management is an integral part of the accounting cycle. This process ensures that suppliers a company works with are paid properly and on time. The process is highly transactional and repetitive which makes accounts payable management a perfect function to delegate to an outsourcing provider. It is in fact one of the most outsourced functions.
Accounts payable outsourcing is enlisting the services of a third-party provider in providing back-office support on functions under the accounts payable management process such as invoice and billing management.
Accounts Payable Outsourcing lets businesses solve the challenge of having to deal with the increase in the volume of transaction and deal with scaling operations to better fit the increase in transactions. Having to outsource the processes, aside from helping businesses with the volume of transactions involved in accounts payable management, also ensures proper cash flow management and ensures talent continuity.
Your outsourced staff can work with whatever existing systems or software you currently use for your database and payments processing. The advantage of accounts payable outsourcing is it streamlines the approval process, allowing for efficiency and fast turnaround.
Leveraging detail-oriented outsourced staff knowledgeable in accounting software to process invoice records enables efficient day-to-day operations of accounts payable management.
Here are some tasks you can delegate to your outsourced finance and accounting team.
Tasks you can delegate in Accounts Payable Processing
Accounts Payable (A/P) Data Entry
With Accounts Payable Outsourcing, upon receipt of invoice from suppliers you already have a delegated team to provide the corresponding invoice data capture.
An outsourced accounting personnel or team can collate, identify invoice eligible for payment, categorize invoice for you for proper records keeping for documentation and audit purposes. Invoice scanning can be done manually via transcription, or automatically with the assistance of invoice scanning software or company-wide accounting systems or cloud-based collaboration tools with embedded machine learning features that allows for fast data extraction.
Purchase Order Matching
This process is a critical aspect of the accounts payable process for proper accounting.
Upon receipt of the invoices, your outsourced team can review whether stated services in the invoice versus actual services provided match. Some parameters to check in the purchase order and invoice are the agreed terms, supplier’s invoice, original purchase order price, purchase order receipt, quantity ordered, and physical quantity received.
Depending on the setup, once invoice and purchase orders are matched, outsourced accountants can forward the invoice to internal staff for proper invoice review. This is to ensure the invoice subject for review has details that comply with financial policies and regulations.
Records Monitoring
A systematic review of all current accounts payable ensures proper management. Accounts payable outsourcing allows you an outsourced team to review outstanding or pending payables to ensure proper processing, documentation and timely payment and avoid double posting or duplication.
Reconcile accounts payable
Similar to data entry, accounts payable reconciliation can also be done manually or with the use of cloud-based collaboration software. Accounts Payable outsourcing lets you delegate the Accounting Reconciliation Tasks such as reconcile all Accounts Payable & Retainage Payable, Reconciling Credit Card Payable, and preparing and executing other related tasks.
Why Outsource Accounts Payable Tasks to Connext Offshore Teams?
Connext Global Solutions provides offshore expert accounting and financial services support at all levels with our cost-effective custom outsourcing solutions.
Connext Global Solutions has industry standard operational controls that can support commonly used Accounting software such as:
- Xero
- WorkflowMax
- MYOB
- Dynamics
- QuickBooks
- Zoho Books
Connext Global Solutions has a tremendous talent pool of employees, including Accounting professionals. The company provides custom outsourcing solutions by providing high caliber back office and technical support from our industry experts that streamline business workflows.
Businesses looking to outsource Accounting functions can tap from our talent pool of:
- Bookkeepers
- Accounting Associates
- Junior CPAs
- Senior CPAs
- Controllers
Start building a scalable support team of Finance and Accounting experts. Outsource your end-to-end Accounts Payable workflow with Connext Global Solutions today.
Connext Global Solutions helps companies build custom, dedicated support teams in the Philippines. Learn more about Connext Global Solutions.
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