The accounts payable function involves cash outflow to vendors from whom firms purchase on credit. It is an influential and significant accounting function, enabling expense management, maintaining credibility, and improving relations with suppliers. Without payables processing, firms might encounter pitfalls, straining their entire workflow.
Most businesses practice manual AP processing using paper checks, files, and documents. Such processing leaves scope for embezzlement and theft by employees. It becomes challenging to spot the actual culprit when only minimal security measures apply. The in-house employees may find loopholes and leave businesses to struggle with financial losses. Outsourcing accounting helps considerably in addressing this issue. However, it is not a complete resolution. 
Occupational fraud builds over time if nobody detects it at its early stages. It benefits from manual functioning, where firms still rely on paper and have lax security or policies. Even after securing files and checks in the proper places, it may not be helpful. The fraudsters can benefit from the internal loopholes, use paper checks waiting for a sign, generate ghost invoices, etc.
Unaware about the actual amounts on bills can affect the firms' flows. Employing different people to approve invoices, make payments, and standardize goods can flout three-way matching principles. Not authenticating vendors and invoices leads to excess outflows. 
Small and medium businesses suffer the most from such issues. However, automation through accounts payable outsourcing services can provide benefits that will mitigate this risk, if not eliminate it. The tools and technology beneficial in payables management are as follows:
Two-factor authentication:
Under two-factor authentication, outsourcing accounting companies define permissions and grants to access payable files. It restricts file access using a password and sends a factor authentication message to your number. Even if your email gets hacked, your phone can help prevent misconduct. 
Duties and roles segregation:
Companies must separate employees' roles and duties from one payable function to another. The invoice receiving and approval persons must differ from those who make payments. It provides a security layer over functioning. It is also helpful in allocating tasks as every person cannot perform all functions. 
Potential fraud notification:
A business may receive notifications of potential fraud when out-of-ordinary things happen in the system. Firms will get alerts when the vendor's email, bank account information, or address changes. 
Logging:
Even after implementing several security measures, firms may still face problems. The payment information history in a read-only format provides data about such frauds in the past and what you can do to overcome them.