Accounts payable is critical to a healthy finance function. But it’s one area many accounting and bookkeeping professionals avoid taking on, for a few reasons. Many consider it risky, especially with rising rates of fraud, or just too time consuming and manual to be worthwhile.

Yet there are a growing number of those in the industry using it to expand their service offerings, grow revenue, and create an all-round better experience for clients and teams.

Technology – in particular automation – is the key that opened this door. In the past, accounts payable was a highly manual process that lacked transparency. Bills would come in, be placed in someone’s desk tray for approval, then eventually go on to be paid. Even with newer technology, like email and cloud accounting, there’s still limited visibility that can be easily taken advantage of by nefarious players.

“Previously, we could have only done AP if we were in a client’s office and able to see everyone and guarantee all bills were approved,” says Brendan Lucas, Head of Accounting APAC at ApprovalMax and Founder of Next Dimension Accounting. “When working remotely, we typically left AP to the client because it was too hard to manage without any real oversight.”

However, the right approach can unlock a whole new world of accounts payable.

Introducing AP as a service

More and more, accountants and bookkeepers are overcoming the roadblocks to offer accounts payable as a service, both standalone and as part of broader offerings.

This sees them taking on part or all of the AP process for clients, taking care of the input of bills, getting approval, batch preparation and, in some cases, making the payment.  

Why are they taking on a once off-limits task? First, to boost revenue. Offering AP as a service expands their business and introduces a new, recurring income stream with different fee structures. More clients are also seeking this kind of service – many accountants and bookkeepers say they first started due to client requests.

Not only does this introduce a new revenue stream, it’s recurring revenue; usually on a monthly basis. This guarantees a consistent amount of work vs the volatility of tax or consulting work.

But the service adds to more than just the bottom line. Lucas says offering AP as a service boosts the overall quality of accounting data, which has a big impact for those offering it as part of broader services. “At the end of the day, we can't do our management accounting unless we've got all the expenses in the system because otherwise it doesn't make sense.”

With up-to-date AP insights and accurate data, accountants and bookkeepers can save time and feel confident in the numbers they’re working with.

Finally, it pays off in client satisfaction and retention. “We’ve found where we offer that complete package we have a lower attrition rate, which is huge for us,” says Lucas. “It 100% offers a competitive advantage. Offering more value and reliability to a client through better processes and experiences builds a better relationship – and good relationships last longer.”

So, whether you already offer accounts payable or are new to it entirely, how can accountants and bookkeepers create and standardise this service for clients? Read our guide that takes a closer look, drawing on insights from ApprovalMax’s expert advisors who have navigated this themselves. Our guide will help you:

• ‍Uncover opportunities: Is AP as a service right for your firm and clients? Explore what you should consider regarding your existing clients, processes, and team.‍
• Set up the right processes: De-risk AP as a service and streamline processes with the right technology and workflows to make light work of the traditionally manual task.‍
• Adapt and refine: Technology lays the base groundwork for smooth AP as a service. From there, refine the process to meet the needs of your client, team, and practice.