3 Steps to Streamline AP with Vendors and Contractors
Learn how Liquid can help you streamline your accounts payable process with vendors, freelancers, and contractors.
Manually managing all the documents and processes involved with engaging freelancers, independent contractors, and vendors creates headaches and inefficiency for your accounting team.
Learn how to streamline your accounts payable (AP) processes while saving time and reducing costs.
Design Your Onboarding Process
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The key to streamlining AP with your freelancers and contractors is to use an onboarding process. Your company should have an onboarding process in place that’s used every time with every contractor.
Designing a process may sound daunting, but it’s actually quite straightforward. Follow our 6 step onboarding checklist to create your process quickly. The essential components of any vendor onboarding process include:
- Collect vendor contact details
- Create and execute an Independent Contractor Agreement (or Master Contract, Freelance Contract Agreement, Consulting Agreement, Master Services Agreement, or Service Level Agreement)
- Execute a Non-Disclosure Agreement (NDA) – this step is optional but highly recommended
- Collect a completed W-9 form (US freelancers/vendors) or W-8 form (international freelancers/vendors)
- Create and execute a Work Order (WO) or Statement of Work (SOW)
- Collect payment details
Completing these steps upfront enables your company to streamline and automate AP processes. Plus, these components are all essential to good vendor management.
Automate Your Onboarding Process
Once you’ve established an onboarding process, you are ready to start streamlining and automating. To do this, ideally, you will have templates for key documents, like the Independent Contractor Agreement and Work Order, that you can quickly edit for each vendor and project. A freelance and vendor management system like Liquid makes it easy to automate your onboarding.
Companies using Liquid can utilize our standard onboarding process (with all the essential components) or customize it to fit their needs. Liquid’s onboarding setup includes templates for Master Contract and NDA along with the IRS W-9 and W-8 forms. Inviting new vendors to your onboarding process takes less than a minute.
Once your freelancers, contractors, and vendors are onboarded, projects can quickly be set up and executed through Liquid’s intuitive Work Order process.
Automate Your AP Process
Now it’s time to reap the benefits of standardizing and automating the onboarding of your company’s freelancers, contractors, and vendors. A freelancer and vendor management system like Liquid makes it easy to streamline and automate your invoice processing and payments. Liquid provides the support that accounting teams need with invoice approval workflows, verification of invoices against SOWs, notifications, and automated reporting. Liquid’s automated algorithm for matching invoices to work orders helps accountants quickly catch unintended overbilling, duplicate billing, and fraud.
With Liquid, accounting teams can save many hours each month, improve financial reporting, and decrease errors. All the information the accounting team needs to manage AP for freelancers has been collected and verified upfront. Plus, your vendors will be happy too — sending payments is a breeze with Liquid’s secure 2-day payments to 175+ countries worldwide.
Start Saving Time
Changing from manually managing AP for freelancers, contractors, and vendors is easy with Liquid. Finli, an administration solution for neighborhood businesses, switched to Liquid for vendor management support. Now invoices and payments are quickly reviewed and authorized — helping Finli save time and money every month. Ready to streamline your AP for freelancers, contractors, and vendors?
Ready to streamline your accounts payable and save your business time and money? Try Liquid today.
Category: Liquid News Freelancer Management Finance and Accounting Human Resources Compliance Operations
Updated: May 25, 2021
Quick note: This is not to be taken as tax advice or legal advice or payroll advice. Since tax rules and laws change over time and can vary by location and industry, consult a CPA / tax advisor and/or attorney for specific guidance.