Accounts Payable Outsourcing with All of the Pros and None of the Cons

Businesses are always looking for ways to maximize profit and reduce costs. Since 1989, outsourcing has become one of the best solutions for getting jobs done not only efficiently but also cost-effectively, helping businesses take productivity to new heights. One of the most common and critical of these practices is accounts payable outsourcing.

However, some businesses have found that outsourcing their accounts payable had caused a lot of problems for them. Communication problems, lost invoices, and audit errors are some of the issues discovered.  Why did things go wrong? How can you avoid making the same mistakes? AwesomeOutsourcing is here to provide you with a solution.

Accounts Payable Meaning

Webster’s New Universal Unabridged Dictionary defines accounts payable as: “a liability to a creditor, carried on open account, usually for purchases of goods and services.”

You could say that “accounts payable” is simply a fancy term for money owed when buying goods on credit. If a company orders supplies from its suppliers, they would incur a short-term IOU that they need to pay on time to avoid getting defaulted. In business terms, this is referred to as accounts payable or AP. This is used to keep track of money owed, to whom, and when you have to pay it.

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This is one of those bookkeeping tasks best done by someone else to free you up to concentrate on running your business. There are plenty of outsourcing firms that provide accounts payable services, but we are here to provide you with a better option.

Before that though, let’s take a look at why you would want to outsource.

Benefits of Accounts Payable Outsourcing

Outsourcing helps your business achieve its potential because of these factors:

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Problems of Accounts Payable Outsourcing

If those benefits sound good to you and you are ready to find a BPO firm to handle your accounts payable, hold on for just a minute, because these problems might happen to you:

trouble with accounts

To be fair, these problems can be avoided by choosing the right outsourcing firm, one that you can trust.

There are many outsourcing firms out there that value their clients and ensure that your dealings with them are as smooth as possible. However, you still can’t beat the less expensive option of outsourcing directly.

How to Beat the Problems Involved in Accounts Payable Outsourcing

If you have been reading everything thus far, then you already have an idea where we are going here.

The solution to your problems: Outsource directly to the Philippines!

Instead of entrusting your accounts to another company, you can simply hire an accountant or a virtual assistant yourself. Doing this will allow you to enjoy the best of both worlds by having an employee that you can supervise and also allowing you to cut costs by outsourcing offshore.

Why the Philippines? Because the Philippines has an English-speaking population of 63.73%, higher than other popular outsourcing countries like India (12.18%), China (less than 1%), Thailand (27.16%), Brazil (5%), or Poland (37%). Plus, because of the low cost of living, you can hire a Filipino online employee for as little as $2 an hour.

It can be argued that outsourcing to South-East Asia might be cheaper, but outsourcing to Eastern Europe would make communications easier. However, this does not apply to the Philippines, where English is an official language, obviating the disadvantages of other Asian countries.

The Philippines is very westernized and is highly attuned to American culture. There are never any serious communication issues when working with a Filipino.

Advantages of Accounts Payable Outsourcing to the Philippines Directly

Aside from all the existing benefits listed above, outsourcing directly to the Philippines can give you the additional benefits:

accounts

You can find thousands of Filipino accountants and virtual assistants over at Onlinejobs.ph with varying levels of experience. You can register for the monthly fee of $69, find the employee you are looking for, and cancel your subscription when you are satisfied with the employee you have hired.

Too Good to Be True?

We are not going to pretend that outsourcing to the Philippines is absolutely problem-free, nothing is. However, if you familiarize yourself with Filipinos and know what to expect, then you can pre-empt issues that might occur.

You might also need to invest time in training them and acclimatizing them to your business. Plus, you’re going to have to start giving them raises when they deserve it (they’re not robots).

Spending a little time getting to know them and training them is a very small price to pay for all the benefits that they can provide for your business. We think it’s worth it. Outsourcing to the Philippines is one of those smart business decisions that is rarely talked about and could be the key to elevating your business to the stature you’ve always dreamed for it.

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