The key roles and responsibilities of the accounts payable (AP) function are as follows:
- Processing invoices: Accounts payable teams verify the invoices received from suppliers and vendors. They check for any errors in the information given on the invoice for appropriate payments and avoid disputes. Outsourced accounts payable services help to process invoices efficiently in less time as they have skilled personnel and advanced technology to automate the process.
- Reconciling statements: The Accounts payable team is responsible for reconciling vendor statements with the company’s records. It ensures that the team has received and processed the invoices accurately.
- Remit payments: Payables issues required payments to vendors on time that strengthen the relationship with vendors.
- Resolving discrepancies: Accounts Payables analyzes and resolves discrepancies if found between invoices and POs. It provides all support or documents to other departments also.
- Reporting: The team reports to the company on vendor payments, and outstanding invoices regularly.
- Vendor Management: Accounts payable team is responsible for effective vendor management. They look at their payment terms and mode to be compliant and avoid legal issues. Whenever the company receives an invoice from a new vendor, the AP team needs to enter the details in the system and maintain the new vendor’s records accurately.
Enterprises can automate their Accounts payable processes by utilizing third-party outsourcing services that have skilled personnel. Accounts payable outsourcing companies ensure that the financial obligations in a business are met correctly and on time.