Outsourcing is a valuable strategy for businesses of all sizes. One of the most commonly outsourced functions is Accounts Payable (AP). In this blog, we will explore the significance of accounts payable outsourcing, the tasks involved, and the benefits. You’ll also learn about one of the top accounts payable outsourcing companies.
What is Accounts Payable?
Accounts Payable (AP) is a critical component of financial management in a business. It involves tracking what the company owes to vendors, suppliers, and other creditors. It also involves ensuring timely invoice processing, approvals, and managing funds for payments. Effective AP management is essential for maintaining strong vendor relationships. It also ensures favorable cash flow and improves financial planning. Additionally, accurate AP information is vital for producing precise financial statements.
The Tasks Involved in Accounts Payable Outsourcing
Outsourcing accounts payable services to specialized providers involves various tasks:
- Review and Record Invoices
- Organizing and coding invoices
- Monitoring email inbox for timely invoice processing
- Identifying PO-based and non-PO-based invoices
- Resolving discrepancies
- Matching with Purchase Orders
- Verifying invoice information against purchase orders
- Routing Invoices for Approval
- Ensuring proper approval and tracking
- Recording approved invoices in the accounting system
- Remitting Payments
- Processing invoice payments according to vendor terms
- Reviewing and processing manual checks
- Vendor Management
- Updating vendor contact and banking details
- Reconciliation Support and Reporting
- Participating in intercompany settlements
- Producing and analyzing monthly reports
The Benefits of Outsourcing Accounts Payable Functions
Outsourcing accounts payable provides numerous advantages:
- Cost Savings: Reduces expenses by eliminating the need for a full-time, in-house AP team.
- Increased Efficiency: Streamlines AP processes with automation, resulting in faster turnaround times.
- Access to Specialized Skills and Technology: Utilizes advanced tools and experienced professionals.
- Improved Accuracy: Reduces errors through automated processes.
- Better Vendor Relationships: Ensures timely payments and takes advantage of discounts for early payments.
In-House Accounts Payable Challenges
Managing accounts payable in-house comes with several challenges:
- High Costs: Recruiting, training, and maintaining an in-house team can be expensive.
- Limited Scalability: In-house teams may struggle to handle a sudden increase in invoices.
- Manual Errors: Processing invoices manually increases the risk of errors and disputes with vendors.
- Resource Constraints: In-house teams may lack the specialized skills and technology needed for efficient AP management.
Accounts Payable Business Process Outsourcing with ARDEM
ARDEM is one of the leading business process outsourcing companies in the US. We offer comprehensive accounts payable outsourcing services. We help businesses improve efficiency and reduce costs. Here’s why ARDEM is a top choice:
- Quick Set-up of Your AP Team: ARDEM quickly assembles a trained AP team that can begin working as your AP team shortly, adopting processes designed to streamline operations.
- Efficient Processing of AP Tasks: Every invoice is acted upon the same day, with exception invoices tracked to ensure quick resolution. Your team takes ownership from receipt to payment.
- On-Time Vendor Payments: ARDEM ensures vendor invoices are processed and payments are made via Bank ACH/Wire on time.
Scalable Solutions: As your business grows, ARDEM can add qualified and trained AP resources to your team to handle increased volumes. - Advanced Technology: Utilizes ARDEM Cloud Platforms to bring technology for further business process improvement.
Full Process Management: ARDEM manages the entire AP process, from processing incoming bills and invoices to verifying vendor invoices against purchase orders and receipts.
The Advantages of Outsourcing Accounts Payable with ARDEM
- Enhanced Efficiency: Automation and skilled teams ensure faster and more accurate invoice processing.
- Cost Savings: Reduces operational costs by outsourcing to specialized providers.
- Improved Accuracy: Minimizes errors through automated processes.
- Better Vendor Relationships: Ensures timely payments and capitalizes on discounts for early payments.
- Focus on Core Business: Allows your internal team to concentrate on core business activities.
Conclusion
Choosing to outsource accounts payable functions can transform your business operations. With ARDEM’s expertise and advanced technology, you can improve efficiency, reduce costs, and ensure compliance. Thus, you can have the peace of mind knowing your accounts payable management is in capable hands. So, don’t waste any more time and schedule a free consultation with ARDEM today. Learn how our accounts payable outsourcing services can help your business achieve greater success.
