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Invoice ProcessingFinancial and Accounting

5 Reasons To Outsource Your Invoice Processing Services

By March 13, 2020March 12th, 2024No Comments
5 Reasons Why You Should Outsource Your Invoice Processing Services

Is invoice management taking up most of your accounting department’s time? Do you constantly find yourself having to deal with delayed payments while struggling to clear an ever-increasing invoice processing backlog?

If so, then it’s high time you adopted a smart solution to streamline your processing workflow and outsourced your invoice processing services.

Discover smart digital solutions for your invoice processing services.

Invoice management is defined as a backend business process that deals with the management of all financial and delivery transactions between a business and its vendors or suppliers. 

It’s not as simple as it sounds, au contraire, managing multiple invoices in different formats from different vendors and suppliers can be a formidable task. Additionally, it can get even more complicated when one has to manage invoices for an organization with multiple locations, with a different set of vendors for each location.

So, what makes outsourcing a smart solution to end all of your invoice processing woes? We won’t give you just one reason, we’ll give you five:

1. Enjoy Low Operating Costs with Invoice Processing Services

Enjoy lower costs by outsourcing your invoice processing services.

Outsourcing your invoice processing to a well-equipped analytical team can drastically cut down your invoice processing costs and can also result in better invoice management.

When we talk about cost management, there are 3 basic costs incurred while processing invoices: direct costs that refer to the costs of physically processing invoices; printing and mailing them; then we have the indirect costs that refer to the expense of hiring employees to process the invoice details (enter, update and archive all invoice data); and then, we have the hidden costs which refer to the negative cash flow created due to an invoice lag or delay. 

An automated invoice processing solution will streamline your entire process to reduce costs, speed up the approval process and ensure higher accuracy of data.

Now that you are free from the hassle of processing every step yourself, you and your staff can monitor the entire process to eliminate errors, clear out backlogs and run your day-to-day operations more efficiently. 

The average cost of processing a single invoice in the U.S. is currently estimated to be between $12 to $30. The labor costs can also increase based on how many invoices are processed in a day.

The ARDEM Invoice Manager or AIM is guaranteed to lower your invoice processing costs by an immediate 30% and offers a one-stop solution for all of your invoice processing challenges, saving you both time and money.

2. Shorter Cycle Times

Outsourcing your invoice management also results in faster payment cycle times.

Outsourcing your invoice processing also translates into shorter payment cycle times due to faster and more efficient processing of invoice data. 

Outsourcing allows you to receive invoices from multiple sources in different formats and templates, e.g., physical copies scanned documents or digital invoices. The various invoice formats are then forwarded to the outsourcing company which will take charge of document conversion and will standardize all the formats.

The use of intelligent automation can also be used to fill in missing information to process your invoices in real-time for faster approval and payment. 

With the ARDEM Invoice Manager, you can mail or forward all of your physical invoices directly to ARDEM where we sort, scan, and upload the images to our cloud network. You can also directly email your invoices to ARDEM, where they will be processed in real-time. 

Our invoice management platform also enables users to upload invoices directly just by logging into the platform. Auto-generated notifications are sent to confirm the receipt of all invoices. Our invoice processing solutions can reduce your cycle times by up to 65% or more. 

3. Streamline Your Approval Process

Streamline your approval turnaround time by outsourcing your invoice processing services.

One of the biggest hurdles in the invoice management process is getting the invoices approved and signed by multiple approvers at different levels.  Copies of invoices can get lost under piles of paper on desks or in the maze of business emails received daily.

As your invoice processing becomes faster and your turnaround time becomes shorter, your approval process also becomes simplified leading to swifter approval and shorter payment cycles.

Once you have uploaded the invoices into the ARDEM Invoice Manager, 3 to 4-way matching is completed, invoices are reviewed, and an auto-generated notification is sent for a multi-level approval.

4. Greater Accuracy In Invoice Processing

Experience greater accuracy in invoice processing by opting for trusted outsourcing services.

One major issue faced by almost all businesses in the course of in-house invoice processing is the inevitability of human error in data entry and processing which can lead to invoice backlog and delayed payments. 

The automation of data entry for processing invoices eliminates errors and our intelligent automation automatically fills in missing details to standardize all of the invoice templates/formats for easy processing and faster approval at multiple levels.  

In addition, the standardization and centralization of all your invoicing data make it easy for you to analyze the trends in expenditure and payments. This, in turn, enables you to identify areas of waste/delay and optimize your purchase orders accordingly. 

At ARDEM we offer you the perfect combination of human genius/innovation and intelligent technology that work in sync to offer you the best invoice processing solutions.  

5. The ARDEM Invoice Manager (AIM)

The ARDEM Invoice Manager offers you the perfect equation for successful invoice management.

At ARDEM, we ‘AIM’ to provide you with customizable invoice processing solutions with our in-house invoice processing platformthe ARDEM Invoice Manager. 

AIM or the ARDEM Invoice Manager is a cloud-based network that provides you with a complete solution for AP and invoice processing

The ARDEM invoice manager receives the vendor formats in different physical and electronic formats, once the physical documents have been converted using OCR technology. ARDEM Data Capture uses a mix of machine learning and artificial intelligence to map out the multiple invoice formats and standardize the extracted data. 

The AIM dashboard can be further customized to show the different trends from PO to non-PO invoices received monthly, and also to ascertain the total number of invoices received during the entire year and more. 

This data is further reviewed and edited in the ARDEM Invoice Manager. It can also be downloaded in a format easily incorporated into your existing ERPs, thereby reducing the need for a large IT overhaul.

Our Invoice Manager offers you the perfect equation for successful invoice management with the right team of analytical thinkers and proprietary technology designed to reduce your operating costs and approval-turnaround while providing scalable solutions for invoice processing services. 

When it comes to invoice processing services, you won’t find a better or more dedicated partner than us. 

Looking for a one-stop outsourcing solution for all your payment processes? Check out our Accounts Payable Processing solutions and the ARDEM Utility Manager, an optimized cloud-based BPaaS solution.