Streamlining & Optimizing Upstream And Downstream Accounts Payable With Managed Services
UPSTREAM AND DOWNSTREAM OF ACCOUNTS PAYABLE
Organizations rely upon efficient and effective financial operations to keep their businesses running smoothly. As such, investments in technologies, services, and personnel to achieve cost reduction and improved accuracy are essential. Among these necessary investments is the implementation of upstream and downstream accounts payable solutions with managed services. In this article, we will explain how managed services can improve the upstream and downstream processes of accounts payable and provide step-by-step guide on how to deploy such solution.
Managed services are an ideal way to streamline and optimise end-to-end financial operations, particularly those related to accounts payable. It refers to an arrangement wherein the an external provider completely takes control of the enterprise?s accounts payable processes. This includes processing invoices, creating payment files, insurance records, and looking after reconciliation services. Even data entry and help desk services are part of the package of managed services.
Furthermore, this approach to organizing accounts payable processes is especially appealing for its minimal capital investment and overhead costs when compared to in-house solutions. By linking up with managed service provider, the organizationshifts the burden of managing its accounts payable process to the provider which typically employs sophisticated technology, experts, and services all under one roof.
Deploying managed service solution for upstream and downstream accounts payable processes involves five stages:
1. Evaluate the Needs of Your Company
Before evaluating solutions, it is essential that your firm determine its specific needs, especially when it comes to the size, complexity, and level of detail it requires in its accounts payable processes. Here, an examination of each component in the process such as invoice collection, routing, payment processing, and reporting is important. Doing so will allow the organization to identify which specific tasks within the process can be outsourced and which areas it can keep in-house.
2. Start Researching Solutions
Once the companies needs are determined, the next step is to start researching the solutions that the organization can leverage to best fit its requirements and budget. Having clear idea of the features, performance and accuracy benchmarks of managed services will serve as good foundation for selecting the ideal provider.
3. Compare Select the Managed Service
Before finalizing managed service provider, the company must weight its options. To make the most informed decision, it is best to compare the various providers shortlisted and evaluate performance, cost, and commitment they offer. The firm should also vet the provider?s references to ensure the organization will be able to enjoy the same benefits stated in the initial quote and understand the contractual agreement.
4. Implement the Technology
As part of the managed service selection, the organization must decide which technologies to deploy and how it ishould be linked to the enterprise?s existing IT infrastructure. Since managed services involve the use of software, personnel, and other resources, integrating it with the companies existing system architecture is essential.
5. Monitor Support
The key to successful managed services is to ensure that the provider can keep up with the companies needs. That is why proper monitoring and active support is required to ensure that the performance and commitment to service are being met. This can be in the form of regular audits, upgrades, and scheduling maintenance of existing systems.
Using managed services can significantly improve the organizations upstream and downstream accounts payable processes. Apart from providing cost-effective solution, solution providers often include several features and can personally customize services according to the organizations specific requirements. However, for the organization to fully take advantage of managed services, it is important to take the right steps and study the best solutions that fit it the most.
