Accounts payable (AP) and accounts receivable (AR) are two important financial functions that businesses need to manage. AP is responsible for paying bills to vendors and suppliers, while AR is responsible for collecting payments from customers.
AP and AR can be time-consuming and complex tasks, especially for businesses with a large volume of transactions. This is why many businesses choose to outsource these functions to a third-party provider.
What is Accounts Payable?
Accounts payable is the process of paying bills to vendors and suppliers. This includes tasks such as:
- Reviewing invoices for accuracy
- Matching invoices to purchase orders
- Approving invoices for payment
- Processing payments
- Tracking payments
What is Accounts Receivable?
Accounts receivable is the process of collecting payments from customers. This includes tasks such as:
- Sending invoices to customers
- Tracking customer payments
- Following up with customers on late payments
- Writing off bad debts
Why Outsource Accounts Payable and Accounts Receivable?
There are several benefits to outsourcing AP and AR:
1. Reduced costs
Outsourcing can help businesses save money on salaries, benefits, and equipment.
2. Increased efficiency
Outsourcing providers have the expertise and resources to process AP and AR transactions more efficiently than most businesses can do in-house.
3. Improved accuracy
Outsourcing providers have systems and processes in place to ensure that AP and AR transactions are processed accurately.
4. Reduced risk
Outsourcing providers can help businesses reduce the risk of fraud and errors.
5. Free up staff
Outsourcing AP and AR can free up staff to focus on more strategic and value-added activities.
Outsource Your AP and AR to the Trusted CPA Firm in Orland Park, IL, Elite Accounting and Tax
Outsourcing AP and AR can be a good way for businesses to save money, improve efficiency, and reduce risk. By choosing a reputable provider with the experience and expertise to meet your needs, you can ensure that your AP and AR functions are managed effectively.
Get access to accounting expertise when you work with Elite Accounting and Tax! Get in touch with us for your Orland Park, IL accounting services needs. Book your FREE initial consultation today!
