The accounts payable process comprises one of the most critical tasks of an organization that require complete accuracy and efficiency. Many businesses are currently facing challenges in their accounts payable processes.
A recent survey showed that 25.6% of companies do not have accounts payable automation software. In addition, 73.1% of accounts payable teams struggle to ensure their purchase orders and invoices match.
The Power of Accounts Payable Automation
Automating the accounts payable processes adds value to businesses while freeing their teams to work on other critical tasks. Some of the key benefits of accounts payable automation are given below:
1. Low-Cost Invoicing
The average monthly cost to process 5,000 invoices manually is $64,500, according to data from APP2P Network. Processing the same number of invoices in automation would cost nearly $8,850, translating to ~85% of the savings.
2. Time Savings
Traditionally, invoices were sent to their respective desks awaiting approval. Automated routing cuts through such delays and streamlines the approval process. According to Aberdeen Group, Accounts Payable automation effectively translates to about 18% fewer days payable outstanding, which equates to savings of approximately 5.55 days on average.
3. Data Transparency
Tracking employee productivity becomes easier with enhanced dashboards, which also become handy for employee reviews. Managers can use the tool to track individual and team performance and productivity.
4. Enhanced Insight
Account Payable automation software includes comprehensive dashboards, providing a clear insight into the payment cycle. Data can be exported and imported with real-time access, which is ideal for analysis and reporting, especially at the end of payment cycles.
5. Improved Accuracy
Account Payable automation software helps in reducing errors. The invoice data is also validated against Enterprise Resource Planning information, which helps track duplicate payments efficiently.
Accounts Payable Outsourcing
Outsourcing companies such as ARDEM provide highly efficient solutions with 100% accuracy aimed at helping companies focus on their core competencies while enhancing their accounts payable operations. Here is an overview of how outsourcing companies such as ARDEM can help businesses with accounts payable processes.
1. Cost Savings
Outsourcing companies help businesses avoid overhead expenses facilitating cost savings. According to the American Productivity and Quality Center, the bottom 25% of organizations surveyed paid $10 or more for each invoice they processed. Meanwhile, the top 25% could do the same tasks for $2.07 or less. ARDEM aims to offer efficient results with cost optimization.
2. Access to Resources
Outsourcing companies offer the latest tools and software for firms to manage their accounts payable processes efficiently. ARDEM provides numerous services, including the latest technological tools, cloud and collaboration platforms, automation, machine learning, robotic process automation, OCR and ICR technology and much more.
3. Stronger Security
Many firms, especially mid-sized businesses, may not have the resources to deploy the best security methods. Accounts Payable outsourcing experts help provide data security. ARDEM facilitates a strong security system at multiple levels using VPNs, SSLs and PGP encryptions as a standard practice for securing client data.
4. Efficient Processes
Errors in the accounts payable processing can lead to serious troubles. Even small errors in the accounts payable processes can lead to compliance issues. Additionally, overpaying a vendor or making inaccurate payments can land the firm in problems, especially during audits. ARDEM focuses on providing clients with efficient processes with 100% accuracy and cost-efficient solutions.
The accounts payable process can benefit considerably from outsourcing and using the latest technologies. ARDEM – a BPO, provides cost-efficient solutions to provide 100% accuracy and operational efficiency for the outsourced account payable processes.
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 firstname.lastname@example.org or call us at 908-359-2600.