Outsourcing accounts payable is when businesses hire a third-party service provider to manage their accounts payable process. This includes purchase order matching and entry, travel, and expenses, vendor management services, accounts payable invoice entry, credit card processing, check preparation, vendor maintenance services accounts payable payments disbursement.
When transferred to established outsourcing companies, such hefty tasks reduce the in-house workload and ensure greater operational efficiency. The in-house staff gets to spend more time attending to the more critical functions of the company and can streamline their efforts in line with the company’s growth targets. Outsourcing the accounts payable process generates numerous benefits. Here is a brief overview of how companies can save time and money by outsourcing their Accounts Payable process.
Cost Optimization
Outsourcing the Accounts Payable process helps a company save on a variety of costs related to daily operations. Companies can achieve up to 30% to 50% savings on their annual Account Payables processing cost savings through outsourcing without needing a capital investment. Here is a brief study of how companies can achieve cost optimization through outsourcing
- By managing in-house accounts payable department
By outsourcing their accounts payable process, companies no longer have to manage in-house staff and resources required to run the operation. With outsourcers taking on the entire process, the company’s expenses for managing the department and associated resources get trimmed. With a dip in costs, companies stand to produce better profit margins.
- Hiring and Training of Resources
Companies must incur the cost of appointing resources to their Accounts Payable department. Through outsourcing, such costs of searching and hiring new talent get altered. Outsourcing companies provide a pool of highly skilled professionals to manage their operations efficiently.
- Change in the Cost Structure
Outsourcing companies often charge based on pricing per invoice, which may be set within $1.5-$2 per invoice. This reduces the cost burden for companies as they no longer have to pay employees based on the tedious manual workflow.
Time Optimization
Business Process Outsourcing companies offer comprehensive, advanced tools and technology to manage the Accounts Payable Outsourcing process. With technologies such as advanced automation and machine learning built into the database, the entire process gets managed much faster and more efficiently. This helps the company in disbursing payments on time, ensuring that the backend and supply chain process runs efficiently. Timely payments ensure that the vendors and supply chain stays happy and the company maintains its reputation and creditworthiness. The in-house staff does not have to spend hours manually entering the data, recording payments, and bookkeeping. Outsourcing companies may also provide real-time updates to the status of the accounts payable processes. Such a quick turnaround time offers greater efficiency for the operation and enhanced visibility for business managers.
Business Process Outsourcing (BPO) companies ensure companies achieve greater cost efficiency and time optimization of the entire accounts payable process. ARDEM provides Accounts Payable outsourcing services for established companies. ARDEM guarantees its clients a quick set-up, efficient processing, faster payments, scalability and growth, control, and accuracy. ARDEM uses its distinguished Invoice Capture and Extraction software to ensure its client’s Accounts Payable processes are automated smoothly.
Using the highest level of Machine Language and Artificial Intelligence technology in its automation services, ARDEM builds an exquisite platform for its clients to ensure the highest data accuracy. ARDEM’s automation solutions eliminate process redundancies and lower operating costs. ARDEM’s data extraction services enhanced with the best-in-class OCR and ICR technology ensures a faster turnaround time and greater efficiency.
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.
