Accounts Payable Consultants
Imagine this. Your business has seen substantial growth over the last year. You made a reasonable net profit, but cash flow is still poor. It’s a day-to-day struggle to pay the bills, and you aren’t sure why. There are many different accounts to keep track of and areas where it can be improved. But where do you start, and how do you know that making a change to one aspect won’t complicate another? This is where an accounts payable (AP) consultant comes into play. It seems like a rather hefty title for an asset you may not be familiar with. So, what do accounts payable consultants do, and how can they improve invoice processing and vendor management for growing businesses?
What is an Accounts Payable Consultant?
Cash flow management is essential, especially in an age where the economy is seen as volatile and changing day by day. An accounts payable consultant is responsible for helping businesses manage outgoing payments, ensuring that the timing and organization of vendor obligations support strong cash flow, checking the money coming in and money going out, and implementing best practices to optimize business cash functions by improving invoice processing and vendor management. But what does this mean, and how does it affect your small business?
AP consultants are responsible for strategically paying bills to maximize the benefit from each vendor’s payment terms. Simply put, they oversee your accounts and make recommendations based on your growing business’s needs. By making sure not to pay bills too early (bringing cash balance early unnecessarily) or too late (incurring late fees and penalties), accounts payable consultants equip your business with the best tactics for efficient, optimal, and organized cash outflow.
Why Growing Businesses Struggle with Accounts Payable
Growing businesses may find handling their accounts payable cumbersome and daunting. In fact, accounts payable are one of the more common pain points companies have. If your business is using a paper-based system to track, input data, and organize your accounts payable, manual effort may be required to keep them in check. This, in turn, provides a catalyst for error and threatens your business’s efficiency. This can also lead to larger issues, including fraud, duplicate payments, unauthorized transactions, and risks like audit failures. If you have a team that’s responsible for handling accounts payable and manages a digital tracking system, this creates an added business stressor and can slow business scaling.
Key Benefits of Hiring an Accounts Payable Consultant
Knowing the main reasons businesses struggle with their accounts payable is the first step to addressing whether an accounts payable consultant is the right move for your business. These consultants can provide many benefits for your growing business. For example, an AP consultant helps you save time and cost, helps reduce errors, and gives greater insight into the business cash flow, which in turn boosts the efficiency of business operations. Vendor relationships are improved, reports are streamlined, and easier audit compliance all occur when the business runs smoothly. If the business runs smoothly, scalability becomes a more feasible reality. Accounts payable consultants can only benefit your growing business.
What to Look For in an Accounts Payable Consultant
When looking for an AP consultant, it’s important to evaluate your options. Firstly, is it cost-effective for you to outsource a consultant? If the answer is yes, then the next step is finding a professional who has a clear and thorough understanding of the accounts payable process and the accounting principles. They should be able to locate errors and inconsistencies in cash flow and make informed decisions as to where the business can improve its efficiency.
Our accounts payable consultants are here to help ensure your company stays organized and efficient at all stages. Book a free session with DeMar Consulting Group today to discover what an accounts payable consultant can do for you and your business.
