Accounts payable (AP) generally includes managing vendors as well as vendor invoices, approvals, and payments—ensuring all obligations are settled accurately and on time. It’s a core part of finance operations that directly affects cash flow, vendor relationships, and overall financial control. In the case of funds, the AP function also includes the allocation of invoices to a number of internal funds or entities.
Accounts payable outsourcing augments your internal finance team with a specialized partner to strengthen how these workflows are managed. By combining internal oversight with external expertise, funds can enhance efficiency, accuracy, and compliance—freeing internal teams to focus on higher-value strategic priorities.
In other words, instead of spending valuable time on manual invoice processing, payment approvals, and compliance checks, finance teams can focus on strategic activities that drive business growth.
Why Companies Choose to Outsource Accounts Payable
More funds are making the switch to outsourcing AP functions for many reasons, including:
- Growing demand for transparency in fee and expense allocations
- Increasing complexity of vendor relationships, contracts, and budgets
- Labor-intensive tasks, such as invoice processing and transaction handling, drain internal resources
- Increased risk of delayed vendor payments, hold-ups in approval workflows, duplicate payments, and service disruptions
- Ability to maintain full control and oversight while outsourcing with secure, audit-ready digital platforms
- Desire to achieve scalability without expanding internal headcount
Overall, outsourcing accounts payable enables investment managers to simplify financial operations while maintaining complete control and visibility.
Building a Successful Accounts Payable Partnership
Finding the right Accounts Payable outsourcing partner is key to achieving sustained efficiency, transparency, and scalability. The right partner not only takes ownership of the entire AP function from invoice intake to payment execution but also ensures accuracy, compliance, and continuous performance improvement. Here are five factors to consider when evaluating Accounts Payable outsourcing providers:
- Domain Expertise and Process Maturity
Choose a provider that has deep experience working with investment managers, hedge funds, and private equity firms. Your Accounts Payable outsourcing partner should understand fund structures, reimbursement policies, and allocation logic to ensure fast, accurate turnaround while aligning with fund compliance protocols. Look for standardized workflows and embedded best practices that promote operational consistency and efficiency across all AP tasks. - Compliance and Transparency
Ensure your AP outsourcing provider offers complete visibility and audit readiness through secure digital platforms and approval workflows IVP Managed Services (Accounts Payable) is SOC 2 Type 2 certified by EY, demonstrating adherence to the highest standards of data security, confidentiality, and operational integrity, as well as complete transparency and trust across all transactions. - SLA-Driven and KPI-Based Oversight
A strong AP outsourcing model should operate on clearly defined service level agreements (SLAs) and measurable key performance indicators (KPIs). Metrics such as invoice accuracy, turnaround time, and on-time payments help assess performance and drive accountability. Regular governance reviews and dashboard-based reporting enable proactive management and continuous optimization. - Scalability and Flexibility
Your AP outsourcing partner should be able to scale seamlessly as your business grows, managing higher invoice volumes, complex fund structures, and multi-currency payments without delays or service degradation. This flexibility ensures consistent service delivery even during peak operational cycles. - Continuous Improvement and ROI Measurement
An effective partnership doesn’t end at implementation. Establish a framework for periodic audits, performance reviews, and ROI assessments to ensure sustained alignment with business objectives. Leveraging analytics and automation insights, your AP outsourcing provider should continuously identify efficiency gaps and deliver process improvements that enhance speed, accuracy, and cost-effectiveness.
Conclusion
IVP Accounts Payable Services enable investment firms to streamline payment operations while maintaining complete transparency, accuracy, and control. By combining standardized processes, expert teams, and SLA-driven delivery, Indus Valley Partners ensures faster invoice processing, timely vendor payments, and strong compliance with fund and financial regulations.
Our scalable, digital-first outsourcing model allows firms to reduce operational costs, minimize manual intervention, and gain real-time visibility into every transaction. With IVP as a trusted partner, businesses can improve vendor relationships, enhance cash flow management, and focus on strategic initiatives.
In short, Indus Valley Partners transforms accounts payable from a cost center into a data-driven value function that delivers efficiency, precision, and measurable impact.
