Overview of Accounts Payable Service
Managing a bunch of invoices and other accounts payable documentation in a row is a cumbersome task for the organization. This activity also consumes a lot of efforts and time of the Accounts payable department. To save oneself from nonessential activities accounts payable service serves aptly. Accounts payable outsourcing service helps in streamlining the multiple tasks, including scanning, matching, approval, and affirmation. It gives staff liberty to focus on other crucial matter business activities and helps in increasing processing times and quick payments.The accounts payable services helps in operating various task without relying too much on the Accounts payable department.
Book a Free Consultation
Get response within 24 hours
Benefits of Accounts Payable Services
- Cost Reduction Approach
Creating in-house accounts payable department can turn out be way too expensive for the organizations. Though, opting for outsourcing can help in saving cost and time of the organization and accounts payable department. Giving the duties and responsibilities of accounts payable department to a team of well-experienced professionals can minimize the cost of business.
- Boost Productivity
Properly scheduled tasks double the company’s productivity and vibrancy. It is high-time for the organization’s to comprehend with the fact that outsourcing of account payable services will definitely put an end to the extremely time-consuming tasks. It eventually increases the production letting the employees to work with a goal-oriented mindset.
- Leveraging the expertise of an outsider’s accounts payable outsourcing services
Recruiting an accounts payable staff is a tedious and restless job. Organization has to completely invest in employees to get the best out of them. It is required to train them and make them worthy of every task assigned to them. On the other hand, stepping ahead with already experienced and expert professionals will serve you the benefit of accounts payable outsourcing.
- Alleviate Errors
In the process of accounts payable, the possibilities of errors do exist. When the involvement of numbers is more, omissions are likely to happen. However, that doesn’t mean businesses will be welcoming errors. As modern business owners are leaving no room for blunders, especially spreadsheet errors, they are offering their accounts for outsourcing. They feel safer with the coordination of experienced accounts professionals for getting their accounting services managed.
Invoice Indexing and per-defined Workflow for Accounts Payables Service
Going digital with your invoices and generating a workflow can help the business in managing the flow of vendor invoices via going through several approval and quality check process. It also assures the same by proposing small technical changes in the existing system and generates a workflow as per the need for accuracy and timeliness of the payable cycle.
Need of Proper Invoice Processing
Supplier’s role is crucial in the growth of an organization. They deliver payments on time which makes the healthy flow of money consistent in the organization. An accurately processed invoice results in hassle-free clearance of payable and avail the benefit of discounts on early payments as well.
Importance of Payment Processing in Accounts Payable Processing
Credit period is an important aspect to manage by the organization as it directly affects the cash flow in the business. On one hand, paying early gives additional discounts thus saving money for the business and on the other hand paying on due dates allows the business to enjoy complete credit period and maintain working capital available all the time.
Why GRIR Reconciliation is important before making payments to the vendor?
Have you wondered why your team takes a lot of time at the end of the year correcting the ledgers for nominal accounts, or any suspense account? Your inventory and payables need to be reconciled regularly so that your books are up-to-date and show true status of your ledgers. Let us help you in the best possible way.
What is Vendor Statement Reconciliation?
Are you getting statements from your top vendors? Are your payments applied to the correct invoices? Are you charged with the late fees on the statements? Do not let yourself struggle with the dispute merely due to the fact that your statements are not reconciled on time and avoid any undue late fees. Now you can easily focus on issuing 1099 forms on due dates and meet deadlines of annual returns.
What Corpbiz will do in Invoice Indexing?
We will conduct an index of your PO and Non-PO invoices/expenses and then approach the required approval authority. The workflow will help us to get a complete MIS for visibility of invoice status in real time and also maintain all your geographies.
What Corpbiz will do in Invoice Processing?
At Corpbiz we have a team of professionals with thorough knowledge of the Accounts Payable process that skilfully manages all sorts invoices ie, PO based Invoice, Non-PO Invoices, Service or Material Invoice, Work Orders with an exact level of accuracy on applicable taxes, and help your business to update payable in a timely manner.
What is the importance of Vendor Data Management? Why should this be outsourced?
Do you have a large number of vendors? Do most of them are One Time or Frequent Suppliers? Are you concerned to have them correctly set-up in your accounting ERP system so that they are reported correctly in your returns?
Hence, the correctly updated and managed vendor databases help in managing the day to day transactions smoothly as well as ensure accuracy tax ability at the end of the year.
Importance of Vendor Help Desk
Some organizations are equally performing well as you are and need their books reconciled timely. A dedicated AP Help desk team addresses all queries coming from your vendor. This is required so that your vendors can be heard well to strengthen the organizational relationship.
Our role in GRIR Reconciliation
We reconcile at the unit level of Purchase Order receiving with the invoices being sent by the vendors and report/clear any variation at frequent intervals. We coordinate with the procurement and the Accounts Payable team to take required action and float a regular MIS for you. Now you can relax on the chair at the end of the year and don’t need to chase your team for the closure of financials on time.
Our role in Payment Processing
All payments are in your controls. Our team prepares an aging of payables, highlights the critical invoices, enlists the top vendors, creates a payment proposal in the accounting ERP system and makes available for your approval and submitting payment file to Bank. Whether you pay daily or weekly we make all the required data available for you to take a decision on your payables.
Our role in Vendor Statement Reconciliation
We reconcile all vendor invoices and the payments issued to them considering all applicable discounts/returns and update the vendor periodically for any difference in the ledger. We coordinate with the vendor's Accounts Receivable team for any required correction.
Our role in Vendor Data Management
We get the required details and tax certificates from your vendors while initial set up and keep them updated frequently year after year. We also address the vendor requests whenever they want their details updated like a change in name, tax ability, nature of business and contact information.
Our role in Vendor Help desk
We set up a dedicated Mailbox and Desk Number so that your vendors can reach you. We log all queries received on the shared mailbox and the help desk number and address them in a sophisticated and timely manner. We also share an analysis of queries and design a solution plan so that such queries are minimized. We create such a team who makes the query resolution a pleasant experience for your vendors.
Frequently Asked Questions
It consists of the full range of necessary accounting activities required to complete a purchase once the order has been placed and the product or service received. The full cycle of accounts payable entails matching documents, approving invoices, issuing checks and recording payments.
The 4 way matching process is used when an operating location is using online receiving and inspection. In 4 way matching an invoice is matched to the corresponding purchase order for quantity and amount, receiving, and inspection information.
The industry average AP clerk can process 5 manual invoices per hour (12 minutes per invoice). This includes data entry, proofing the manual entry, correcting 'fat-finger' mistakes and processing the invoice.
Accounts Payable is a critical function in every finance department. It requires a number of both “soft” and “hard” skills to be truly successful. Many people, even those in other finance roles, are not aware of all the tasks involved in managing a smooth Accounts Payable process.
PO invoice means, you have agreed the prices and quantity before delivery of the product or service and then you get the goods and services and then you receive the invoice. it is called po based invoice. non po based invoice means, there will be some urgent works or bills where there is no purchase order.
Accounts Payable Journal Entries refers to the amount payable accounting entries to the creditors of the company for the purchase of goods or services and are reported under the head current liabilities on the balance sheet and this account debited whenever any payment is been made.
Two-way match is used to compare the invoice received from vendor with the Purchase Order. Three-way match is used to match the details of PO, Goods Receipt and the Invoice document received from vendor.
Note that Accounts payable is a liabilities account, and therefore its balance increases with a credit transaction. The second entry required in a double-entry system is a simultaneous debit to the asset account, Merchandise Inventory.
A General Ledger Code (GL Code) is a string of alphanumeric characters assigned to each financial entry in an organization's ledger.
Accounts payable (AP) is an important figure in a company's balance sheet. If AP increases over a prior period, that means the company is buying more goods or services on credit, rather than paying cash.
