Accounting

How to be the Perfect Host: Deploying a hosted Accounts Payable service

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Accounting
Written by Lucy Beck of Palette   
Tuesday, 22 November 2011

But how should you move into the sector, and what solutions do you need?

 

Outsourcing is no longer a term that causes sleepless nights within companies: in fact, there’s a rush to outsource certain key business functions, and Accounts Payable is one of the prime candidates. The continued pressure on businesses to reduce costs and boost efficiency has ensured that interest in outsourcing continues to grow.

As finance professionals, you’re already helping businesses deal with certain aspects of managing their accounts.  So there’s a real incremental business opportunity for you, in offering both existing and new customers assistance with one of the biggest pain points that businesses face:  handling their supplier invoices more efficiently.

If only it was that easy, I hear you say.  Well, deploying a hosted Accounts Payable service for your customers can be straightforward, giving you a rAccounts Payableid return on your investment and then a healthy, recurring revenue stream, as well as an attractive new service to offer new clients.

It’s a question of having the right solutions in place to power and manage the service; and the ability to address potential clients’ fears and questions about outsourcing part, or all of their Accounts Payable to you.  Here’s a practical guide to both of these aspects.

Building the Accounts Payable engine


The first stage of building a hosted Accounts Payable service is setting up a scanning bureau for the invoices of your service users. Once scanned, invoices can then be input to the Accounts Payable solution, which is the heart of the service.

To ease management of clients’ Accounts Payable processes, and to support the provision of flexible services, a cloud-based solution that enables your customers to get quick, secure access to their invoice workflows is ideal.  This Accounts Payableproach removes the need for client software to be installed on the PCs of EIM service users, minimising deployment and roll-out overheads and offering the benefits of a quick-start service.

The solution should also support automated matching of the invoice to its corresponding PO, contract or other supporting documents, so that all evidence for processing the invoice is available to staff involved in the Accounts Payableproval process. Invoices are sent for payment to the client’s finance system when fully processed and authorised by the relevant staff. 

So a cloud-based Accounts Payable solution forms the backbone for your hosted EIM service, but how should you address clients’ concerns about hosting their invoice management with you? 

Addressing the Accounts Payable outsourcing concerns


Customers may worry that outsourcing their Accounts Payable suggests neglect towards some aspects of their business. In fact, the opposite is true, as outsourcing some services will allow them to focus on more productive tasks, improving overall business output.

Here’s the truth behind the common concerns:


  • Loss of control

The customer is still responsible for the Accounts Payableproval of invoices, so outsourcing simply means allowing an outside company to manage the invoice process, and an outsourcing agreement will allow customers to specify certain stipulations with their provider. Web-based architecture enables greater visibility of the Accounts Payable process, and customers can easily access the workflow at any time, from any location.

  • Security matters

Outsourcing companies handle a large amount of highly sensitive data, therefore have a high-level of security in place to ensure this data remains confidential at all times.

  • All or nothing? 

Clients can choose how much of their Accounts Payable they want to outsource, and it’s their decision whether they want to outsource the entire Accounts Payable or just some areas of the process. 

Will the service provider understand my business?


Although your client’s business is unique, their Accounts Payable process shouldn’t be:  it should be managed transparently and according to best practice, both for efficiency and regulatory compliance.

In conclusion, an effective outsourced Accounts Payable service is driven by a flexible, easy-to-use solution that enables your clients to get up and running with the service quickly, to manage their invoices they way they prefer, and to retain control over the key Accounts Payable elements of authorisation and Accounts Payableproval.  Efficiency, flexibility, discretion and offering added value:  all a part of being the perfect host.


 

 
 
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