Simplify Payments and Expense Allocation with IVP Accounts Payable Services

Asset managers and hedge funds are under heightened scrutiny of fee and expense allocations by regulators and investors, both of which expect full transparency and extensive disclosures. At the same time, vendor relationships, contract management, and budgeting all continue to evolve. These trends make the accounts payable (AP) a critical finance function. Traditional methods that rely on spreadsheets and manual processes are prone to errors, exposing funds to the risks of misallocations, regulatory breaches, and damaged vendor relationships. This is why so many fund managers are investigating whether accounts payable outsourcing is the right choice. In this blog, we explore some of the questions and their answers that we come across during our conversations with fund managers :-

The Challenges of Traditional AP Workflows

Traditional accounts payable processes are well established, but they also come with a long list of familiar challenges:

• Manual processing bottlenecks: Accounts payable processes often rely on manual data entry and invoice matching, which can lead to inefficiencies, delayed payments, and errors.
• Poor scalability: When the volume of invoices and vendors grows, in-house AP teams may struggle to keep up without hiring additional staff, which raises costs.
• Compliance and regulatory risks: As regulatory compliance requirements evolve, it may be difficult for AP teams to stay up to date. Errors or delays in compliance may result in penalties.
• High operational costs: Maintaining an in-house AP team can be costly due to salaries, training, and ongoing technology investments.
• Limited vendor and contract management: Managing vendor relationships and contracts is crucial for ensuring favorable terms and timely payments. In-house teams may lack the tools or bandwidth to manage vendor performance effectively.
• Lack of advanced technology: Investment firms may not have the budget to invest in advanced accounts payable automation technologies.
• Time-consuming reconciliation: Traditional accounts payable processes involve manual reconciliation, which is time-consuming and prone to discrepancies.

 The Advantages of using Accounts Payable services from IVP

Outsourcing accounts payable workflows can solve all of these challenges, allowing asset managers to focus more resources on core activities. IVP Accounts Payable Services combine expert managed services with advanced automation tools, offering a seamless solution for funds looking to enhance accounts payable processes. Here’s how outsourcing with IVP can help:

• Effortless setup and seamless integration

When you outsource your accounts payable services to IVP, the transition is smooth and efficient. Our dedicated AP team is trained to work with your current systems, allowing for seamless integration. This minimizes disruption while immediately improving workflows, saving your organization from handling time-consuming tasks like invoice processing and contract management.

• Effective vendor and contract management

One of the most complex aspects of accounts payable is managing vendor relationships and contracts. IVP AP Services include new vendor setup, contract renewals, and payment management. Our team ensures contracts are renewed on time, terms are met, and all invoices are validated against these agreements. By outsourcing, you also acquire access to an external team that can maintain vendor status, manage documentation, and verify payments, all of which reduces the risk of errors or fraud.

• On-time payments and invoice processing

Timely payment of invoices is critical for maintaining vendor relationships. The IVP Accounts Payable Services team tracks and processes invoices, ensuring they are addressed as soon as they are received. Exceptions are flagged for immediate attention, so no invoice falls through the cracks. This process not only speeds up payment cycles but also improves vendor trust and maintains your financial health.

• Accurate expense allocations

For fund managers, accurate expense allocations are essential for compliance and operational efficiency. IVP Accounts Payable Services can be paired with the Expense Allocation System (EAS)™ to streamline the entire process, ensuring expenses are correctly allocated across funds, management, and other entities. This eliminates manual errors and ensures compliance with fund-specific policies.

• Scalability for growth

Outsourcing allows for scalability that internal AP teams often struggle to deliver. As your fund grows, the need for a flexible accounts payable team becomes even more important. IVP can quickly expand our team to manage spikes in volume without sacrificing accuracy or efficiency. This agility ensures your business can handle fluctuating workloads and prevents bottlenecks in accounts payable processes.

• Fraud prevention and data security

Outsourcing the accounts payable function strengthens fraud mitigation. Our team uses rigorous checks and validation processes to detect and address errors or irregularities in invoices and vendor details. This consistent level of oversight reduces the risk of unauthorized transactions, safeguarding your business against fraud and ensuring the integrity of your financial data.

 Choose Outsourcing for Higher Efficiency

If your fund is dealing with heavier accounts payable workloads, evolving compliance requirements, or an uptick in errors, outsourcing may be the solution you need. With IVP Accounts Payable Services, you gain access to a dedicated team of professionals, advanced software, and seamless integration, all designed to enhance your accounts payable operations. Not only does outsourcing free up internal resources, but it also ensures your accounts payable processes are streamlined, secure, and scalable.

In today’s competitive landscape, outsourcing isn’t just about cost savings. It’s about driving efficiency, accuracy, and compliance. If your accounts payable processes are holding your business back, now is the time to explore the benefits of outsourcing.