When invoices pile up, exceptions age and vendors start calling the controller, the instinct is to add headcount. Sometimes that is right. More often the backlog is a design problem, and extra hands dropped into the same workflow just join the same queue.
This is a common pattern in growing companies. Volume doubles, the vendor list gets longer, and a finance operations team built for the smaller business is still running on the same habits, spreadsheets and tribal knowledge.
Why backlogs build up
Most AP and AR backlogs share the same few causes:
- Work arrives in different ways. Email, portal, phone and a shared inbox all feed the same people with no common intake.
- Everyone handles everything. The same clerk who keys routine invoices is also chasing a disputed freight charge.
- Nobody can see the queue. Without aging reports, a manager finds out about a problem when a vendor escalates.
- Documentation lives in people's heads. When someone leaves or goes on leave, handling quality drops.
None of these are solved by hiring one more clerk. They are solved by deciding how work enters, who owns each stage, and how you will know when it stalls.
Split the work by stage, not by person
The most effective fix we see is to divide the function into three stages with clear owners:
- Intake. One consistent way for items to enter, with basic checks and prioritization at the door.
- Exception handling. Mismatches, short pays, duplicate invoices, missing approvals and disputes go to people who are good at investigation, not volume processing.
- Resolution. Closing the item, issuing the credit or payment, and recording what happened so the cause can be fixed upstream.
These stages call for different people. Intake suits detail-oriented processors who like a steady rhythm. Exception work suits someone with an analytical streak and the confidence to call a vendor or a branch manager and get an answer. If you hire for one profile and ask for both, you get neither.
Make the queue visible
A team cannot manage what it cannot see. Before adding anyone, set up a simple weekly view of:
- Items received and items closed
- Aging by bucket (0-30, 31-60, 61-90, 90+ days)
- Exceptions by type and by vendor or customer
- Work per person and per stage
This does not need a new system. A well-built report from your ERP, or a shared tracker, is enough to start. What matters is that the same numbers are reviewed on the same day each week, and that someone is accountable for the trend.
Often the data shows that 20% of vendors or customers generate most of the exceptions. That is where process fixes pay back first.
Agree on ownership across Finance, Procurement and Operations
Many exceptions are not finance problems at all. A price mismatch starts in purchasing. A missing receipt starts at the receiving dock or the branch. If finance owns the pain but not the fix, the same issues return every month.
Write down who resolves each exception type, how long they have, and what happens when they miss it. A one-page escalation path does more than another round of reminder emails.
Document it so it survives turnover
A clear procedure for each stage, a short onboarding plan and a list of common exceptions with the usual resolution let a new person become productive in weeks rather than months. They also make your backlog recovery durable. Many clean-up efforts fail six months later because the knowledge left with the people who did the work.
When to bring in temporary or contract help
A structured backlog clean-up is a good fit for contract finance staff, provided the scope is defined. Contract AP and AR specialists can work the aged items while your permanent team moves to the new intake and exception model. Set it up with:
- A start and end date tied to a target aging profile
- A named internal owner who reviews progress weekly
- Written handling rules, so contract staff apply the same standards as employees
- A plan for what the permanent team absorbs when the project ends
There is often money in the aged items too. Unapplied credits, duplicate payments and unclaimed vendor rebates tend to surface once someone works the oldest exceptions methodically. Treat that as a bonus, not the business case.
What to do next
Pull your current aging report and sort exceptions by type and by source. If the same few causes account for most of the delay, design the stages and ownership first, then size the team to fit. If the backlog is already hurting vendor or customer relationships, bring in short-term capacity at the same time so the fix is not competing with the daily workload.
If you are weighing permanent hires against contract help for a finance operations team in Canada or the US, a Traverse recruiter can help you scope the roles and find the right people.