Organizations time and again miss the big picture while outsourcing their accounts and finance processes. Irrespective of the maturity of outsourcing market, specifically speaking in the areas of F & A, many organizations haven’t enjoyed the potential benefits from their outsourcing arrangement. However; the organizations can improve the relationship with their accounts payable outsourcing vendors with the help of more strategic outlook and better planning.
Before we start from here, it is important to understand the reasons why it failed to produce the expected results and that is because of:
- Lack of skill to manage relationship
- Unrealistic expectations
- Underemphasized change management
- No coherent strategies
Through highly insightful and informative assessments there are hidden opportunities in such as payment terms and flow practices which are aftermath quantified, organized and documented into plan of action. The ability to negotiate terms with your vendor effectively will let you get right services, at right time and at right price. Here are 5 best ways to negotiate better terms with your vendors, to enhance your overall work process.
- Your outsourcing accounting firm should be dependable and reliable. Do not make hasty decision which might affect your business badly. Check on the references and ensure that the professionals working are qualified and experienced to handle effective accounting solutions.
- Negotiate extended payment terms while working with your new vendor. It is easier to ask and review the payment terms beyond the usual policy as they are excited about lending new account.
- While drawing a contract, it is vital that it specifically indicates what is anticipated out of this project and when it gets completed. Having such understanding between you and your vendor facilitates transparency.
- There are numerous accounts outsourcing companies that offer several bookkeeping services. You can pick as per your organization’s requirements and keep the remaining within the company itself
- Lastly, the security issues are required to be discussed frankly. Your accounting info is crucial and leak in such information can have a drastic consequence on your business. You need to be clear on how your bookkeeping and accounting information should be transferred to the vendor and who will have access to these files.