Outsourcing AP is a common way to reduce an organization's operating costs. However, many businesses incorrectly assume that once a contract is signed, the outsourcing provider can operate with little to no input from the contracting organization.

Outsourcing agreements can only thrive when both parties remain in contact. The following can help organizations maintain a strong relationship with their outsourcing provider:

• Interview some of the outsourcer's former and current clients before choosing a provider
• Keep an AP expert on staff to monitor the relationship
• Audit all reports coming from the provider

When done responsibly, outsourcing can be an effective way to cut costs without sacrificing efficiency. The Accounts Payable Network's upcoming audio conference, Outsourcing Accounts Payable Functions: How to Make it Work for Your Company, featuring Phil Binkow, CEO of Financial Operations Networks, will discuss the pros and cons of outsourcing AP.