Accounts payable, on the other hand, involves managing what your business owes to others. AP can mean all your short-term payment liabilities, including payroll and taxes, trade payables, normal business expenses such as raw materials, products for resale, and services.
Managing accounts involves a comprehensive spectrum of transaction processing and administration handling along with keeping tabs on too many papers like invoices, bills, documents etc. However change is possible with more and more control and coordination leading to a shift in resources responsibilities from mere clerical to more analytical level. Generally it’s a month end panic or tax season panic when small business owners suddenly go on spring cleaning session to tackle all the bills, invoices and miscellaneous business documents to make sense out of them. This will lead to chaos, increased risks and missed opportunities.
As a small business owner you are more focused on strategies to grow your business rather than spend time doing routine things like managing your accounts receivables and payables. But is a very important part of your business. You do need to pay your bills on time if you want to have good relationship with vendors and you do need to keep track of who all owe you money. What if you want to do all this without hiring bookkeeping or an accountant?
Outsourcing Accounting and outsourcing bookkeeping is a cost-effective option for small to mid-sized business owners.
Major benefits from outsourcing back office bookkeeping and accounting tasks:
- Save enormous amount of time and costs
- Analysis of reports generated by outsourcing partner of historical patterns of spending and receivables shows the trouble spots to avoid in future
- Benefit from the significant increase in process efficiency, profitability and financial control
Hiring the right Finance Accounting Outsourcing (FAO) partner will ensure that your accounting systems and processes are smoothly managed to increase profitability. Timely reports will ensure well informed decisions are made to increase ROI. Outsourcing provides an opportunity towards successful conversion of transaction management, documents management, eliminating duplication leading to increased efficiency and productivity gaining an edge over competitors.