A growing business means a substantial increase in business operations. One of the departments that experience such a sudden increase of workload is the Accounts Payable department. All of a sudden, your Accounts Payable staff is processing more invoices than they can fathom.
In such a scenario, a finance manager is saddled with a problem. The solution of which is in deciding whether to hire, optimize or outsource your accounts payable resource.
Let’s break each of these options down to understand their respective pros and cons to your business.
Hire Accounts Payable
Hiring for your accounts payable team, is the most sought after option for most businesses. It is usually beneficial to have an expert in the concerned department on your payroll. Having a dedicated team for accounts payable means having an army of your own, ready to combat the excess of invoice and transactions as and when they arise. However, the process of selecting and screening candidates to find the best suited for the job is not easy. Not only is hiring time-consuming, but also cost intensive.
If your business has money to spare on human resource, then hiring for accounts payable will help you in dealing with the chaos associated with the overload of accounts payable invoices.
Small businesses who are struggling to garner huge profits will especially find hiring unfeasible. The option best suited for them would be to outsource.
Outsource Accounts Payable
Outsourcing is an option best suited for small businesses still struggling to find their footing. When hiring an employee, you not only pay for his skill but also for his time. With outsourcing, you only pay for the job done.
There are many firms that deliver expert accounts payable services whenever needed. You don’t waste time in placing ads on job boards, and screening candidates. An expert is summoned at your service to deal with all your accounts payable related issues.
When you look for a third party to Accounts Payable Outsourcing, be sure to check for it’s reputation. Outsourcing may require the sharing of sensitive data, which in the wrong hands, can deliver a killing blow to the momentum of your business. However, in this day and age of the internet, it is easier to find an outsourcing firm with reputable goodwill.
Optimizing Accounts Payable
For those who have no money to spare and don’t desire spending money on hiring or outsourcing of accounts payable services can opt for a third option. By employing special training sessions for your staff, you can optimize the accounts payable system already existing in your organization.
Undertaking effective communication tactics, studying new accounting software etc. are some methods that can help in optimizing accounts payable within your organization. With the help of such training programs, your staff will be able to handle invoices and other financial transactions with ease and a much more agile pace.
Whether you choose to hire your ap outsourcing , each choice comes with its share of pros and cons. Knowing your business and understanding, it’s standing in the market will help you make a decision that is both effective and lucrative for your firm. Ultimately the choice is yours.