Allow ARDEM To Manage Your Accounts Payable And Boost Efficiency.

Accounts Payable function plays a crucial role in ensuring organizational financial well-being. It is widely acknowledged that manual AP processing leads to a slower process, lost documents, data inaccuracy, poor supplier relationships, and loss of benefits from vendors. Manual AP processing is not just costly but also exposes the cash flow to imminent risk. In fact, some research reveals that the average cost of single invoice processing manually is around $15. Surprisingly, it can be as high as $40 in some cases.

Traditionally, an AP team member manually matches, and verifies invoices, sorts them by date, vendor, or else, enters payment information, and makes payments to suppliers. Next to high processing costs, it is also a time-consuming process. It can cause late or incorrect payments impacting a company’s reputation. 

Therefore, companies exploring solutions to such issues find outsourcing an effective strategy. In fact, finance is by far among the most outsourced services at 44%.

The growth of the Global AP Outsourcing Services Market is projected at a CAGR (Compound Annual Growth Rate) of 12.3% by 2030. The key drivers of this significant growth include: 

• The rising number of Small and medium-sized enterprises (SMEs) 
• More large businesses are considering BPO companies due to the high cost involved in hiring and training teams. 

In today’s fast-paced business era, enterprises seek innovative ways to streamline their business operations with trustworthy outsourcing providers offering cost-effective services.

For a competitive edge with effective AP processing, enterprises can leverage the latest technologies by engaging with the best outsourcing companies, like ARDEM.

ARDEM’s AP services help enterprises transform their AP processes and drive efficiency. ARDEM is one of the renowned accounts payable outsourcing companies and has the expertise to meet clients’ diverse needs with its experience of decades. 

ARDEM capabilities in AP include:

• Quick setup of your AP team to support your growth and scalability 
• Effective AP processes with high data accuracy 
• Greater efficiency with shorter invoice processing cycles 
• Latest technologies (OCR and ICR) with advanced tools, robotic process automation (RPA), cloud and collaboration platforms, and much more.

Here is the workflow that ARDEM follows to manage AP and boost efficiency for its clients: 

1. Email Inbox Management

Separating invoices from other emails and inquiries is important to maintain a well-organized AP process. The team monitors the email inbox regularly to avoid any delay in invoice processing.

2. Identify the Type of Invoice and Code them 

Invoices can be PO-based or non-PO based. The team identifies the invoice type and codes the non-PO based and sends them for approval.  

3. Match PO Invoices to Purchase Orders 

PO-based invoices are matched to the purchase orders to verify that all information is correct – the number of products received, price, applicable discounts, and other details. 

4. Enter PO and Non-PO Invoices into Accounting System 

After invoice review and approval, the AP team enters the PO and non-PO invoices into the client company’s accounting system. All relevant details about vendors – name, invoice title or number, the amount owed, etc., are entered into the system correctly. ARDEM automates this process to achieve the goal of high accuracy. 

5. Monitor the Invoice Approval Process 

To ensure timely invoice approval, the team keeps monitoring the process and follows up on pending invoices.

6. Communicate with Vendors 

Effective communication with vendors is crucial in the AP process. The AP team ensures effective communication with vendors regarding invoice status, payment, or other related issues. Using the primary mode of communication, the team ensures quick response to inquiries and resolve them. 

7. Process Payments 

The team processes the invoice payments according to the vendor’s payment terms and closes the invoices in the system.

8. Reconcile Vendor Statements and Resolve Discrepancies 

The AP team reconciles the vendor invoices with the accounts payable ledger to ensure that all invoices have been paid accurately.  The team reviews invoices and purchase orders and receives reports. If any discrepancy is found between company records and vendor invoices, they resolve it. 

9. Vendor Management 

The team is responsible for updating the company’s system with new vendors. They keep their contact and banking information up to date for efficient accounts payable vendor management.

10. Monitor Accounts Payable Aging Report  

The AP team keeps track of accounts payable aging to ensure timely payment.

11. Reconciliation Participate and Intercompany Transactions 

Client companies get support from ARDEM in intercompany settlements and participate in accounts payable reconciliation by providing necessary documentation and information. 

These steps ensure that the AP department is performed efficiently and effectively.

ARDEM is aimed at helping companies focus on their core competencies and provides highly efficient AP solutions. Here is an overview of how businesses benefit from their AP services:

Outsourcing reduces costs associated with recruiting, training, compensating, and maintaining a dedicated AP team. 

• Outsourcing AP function enables a business to convert fixed costs associated with in-house AP staff into variable costs as it needs to pay for the services used only. 
• The cost of invoice processing can be reduced with automation. You can outsource your entire AP workflow and save an immediate 30%. 
• Enterprises need not invest in infrastructure and people as they can have the required skills from a large pool of talent. There are no hiring or training costs involved.  

Leveraging ARDEM’s experienced resources, enterprises can transform their entire AP processes into a new dimension to gain efficiency.

• ARDEM teams can discover inconsistencies in the previous AP processes and can create an entirely new workflow if required. With ARDEM, companies can either utilize their existing AP process or opt for cloud platform solutions. 
• Following a multi-step quality check and three-way match process, teams at ARDEM eliminate errors. 
• With automation, teams can ensure data accuracy. Since there are reduced errors, accounts payable invoice processing can be completed in a shorter time frame comparatively.  
• By transferring the AP tasks to ARDEM, enterprises can free up their time to be used for the more strategic tasks in their business.

ARDEM provides comprehensive dashboards with its AP automation solutions to provide insights into the invoice payment cycle. Clients can export or import data in real-time. Real-time access to data is ideal for AP function analysis and reporting, specifically at the closing of payment cycles. 

Companies can have their AP teams with ARDEM within a short period of two weeks. Do not worry about increasing AP invoices when you want to scale up your business. ARDEM can add members to your AP team from a large pool of qualified analysts as your needs grow.

ARDEM teams ensure faster payments, always on time, which increases the creditworthiness of their clients among suppliers and lenders.

The AP team manages payroll records, invoice collection, invoice payment, and prepares reports. Clients can free themselves from AP responsibilities by outsourcing AP processes. Concentrate on your core competencies and improve productivity in the business. 

Thus, ARDEM provides technology, people, and value-added consulting services to boost efficiency in accounts payable processes. They do not just take over the responsibility of your AP processing but continuously improve and innovate to maintain a lasting, valuable relationship with their clients. Stay ahead of the curve with outsourced accounts payable, boosting operational efficiency with a well-defined methodology.  

ARDEM provides Business Process Outsourcing and Business Process Automation Services to established companies to help them improve operational Efficiency and Reduce Costs.  For more information please reach out to us  at pricing@ardem.com or call us at 908-359-2600.