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How to Improve Margins with Accounts Payable Outsourcing?

By September 1, 2022March 18th, 2024No Comments
accounts payable outsourcing accounting blog

Companies are constantly looking for methods to enhance services and boost cash flow as the business world gets more competitive. These organizations use outsourcing to make the most of the time of internal employees because they believe that time is money.

One department that is frequently outsourced is accounts payable (AP). Accounts payable outsourcing can optimize margins, improve cash flow, reduce operating expenses and increase profitability.

What is the outsourcing of accounts payable?

When certain accounting functions are outsourced to outside suppliers, it is referred to as accounts payable outsourcing. These activities include tracking payments, managing vendor invoices, accounts payable invoice entries, processing credit card transactions, vendor management services, etc.

How can accounts payable outsourcing increase margins?

AP outsourcing can increase margins in the following way:

1. Timely Invoice Processing and Payments

On Time Delivery

The best providers of AP outsourcing put in place effective procedures that let firms pay their vendors’ invoices early or on schedule.  

Faster payment of invoices leads to improved relationships with suppliers and vendors and early payment discounts. Thus, accounts payable outsourcing increases margins by reducing administrative overhead while increasing productivity.  

For running businesses, ARDEM offers Accounts Payable Outsourcing Services. Fast setup, effective processing, prompt payments, control, scalability and growth, and accuracy are among the benefits provided by us to our customers. We use our unique Invoice Capture and Extraction Software to guarantee that clients’ automated accounts payable processes run properly.

2. Reducing Errors

Incorrect vendor details can cause significant problems in AP processing.

Outsourcing accounts payable may help decrease errors by eliminating human input. Human error can cause problems, including missed deadlines and incorrect bookkeeping entries. With automation, human error is eliminated. 

Thus, payments are made timely, thus availing of discounts, which ultimately increases the margins.  

Improve your AP and invoice processing using ARDEM Invoice Manager (AIM). With AIM, you have the power to take control of your invoicing process – it is simple and customizable. Instantly cut your processing costs by 30% on average. Improve cash flow management through improved financial reporting and visibility into your finances.

3. Reducing Hiring Needs

Flexible Team Business Process Outsourcing

Outsourcing services have dedicated Quality Control experts and Quality Control tools and processes to assure accuracy in data processing. The final deliverable always meets the client requirements. Every project is audited multiple times to assure high accuracy. Use of both manual checks and programmatic validations assure  error free output data, a much higher level than what is typically achievable if the same task were to be completed in-house. 

4. Cost Optimization

When done well, outsourced accounts payable can save companies money. Access to affordable, high-quality services is made possible through a reliable outsourcing partner. By saving money, companies can reinvest in their businesses and create a positive return on investment. 

In addition to offering back-office support services, ARDEM also offers Accounting, HR/Payroll, Billing, CRM, and Inventory Management. We provide businesses solutions that make them more productive and cost-effective.

5. Increase Efficiency

Data entry mistakes frequently happen in manual accounts payable operations. Additionally, the efficiency of invoice processing is constrained by the skills and availability of the workforce.  

Third-party accounts payable businesses offer the cutting-edge software and technology needed to carry out operations precisely and quickly, thus increasing the company’s margins.


Outsourcing accounts payable offers numerous benefits, such as increased visibility into cash flow, reduced paperwork, faster response times, lower operating costs, and improved customer service. Moreover, AP outsourcing frees up internal resources to focus on core operations. 

However, before implementing any outsourced solution, it is essential to discuss and agree upon a formal policy, establish KPIs, and implement controls.

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 or call us at 908-359-2600.