Optimizing Finance with Accounts Payable Outsourcing and Accounts Receivable Outsourcing Services for an Industrial Coatings Manufacturer

Optimizing Finance with Accounts Payable Outsourcing and Accounts Receivable Outsourcing Services for an Industrial Coatings Manufacturer

The client is a leading manufacturer in the US specializing in resistant coatings designed to protect plastics, glass, and metals. Their high-performance products are used across industrial and consumer applications where surface durability and longevity are crucial. As the company continued to grow, maintaining efficient and accurate financial operations became increasingly important.

To enhance productivity and reduce operational costs, the client sought a strategic partner who could manage both accounts payable outsourcing and accounts receivable outsourcing functions. The goal was to ensure data accuracy, compliance, and timely financial reporting.

The Challenges the Client Faced

1. Frequent Staff Turnover and Training Challenges

The client’s internal finance team faced significant disruptions due to frequent staff turnover. Each new hire required retraining the company’s AP and AR processes, consuming time and resources. Maintaining continuity and process knowledge was a constant struggle, impacting overall efficiency.

2. Escalating Costs and Inefficiency in Invoice Processing

Manual invoice processing services were time-consuming, error-prone, and costly. Repetitive tasks such as vendor setup, payment creation, and journal entries were taking up valuable internal resources. The client wanted to reduce these overhead costs and redirect internal focus to more strategic business areas.

3. Lack of Process Consistency in AP and AR Functions

Both the accounts payable and accounts receivable processes were inconsistent. Vendor setup, bank portal transactions, and customer payment postings lacked uniformity. The client needed a trusted business process outsourcing partner to standardize, document, and execute these financial workflows with precision.

Why the Client Partnered with ARDEM

1. Need for Reliable Financial Process Expertise

The client chose ARDEM for its deep expertise in accounts payable outsourcing and accounts receivable outsourcing services. ARDEM’s ability to manage end-to-end invoice processing, payment posting, and financial reconciliation offered consistency and reliability the client was missing internally.

2. Cost Efficiency and Reduced Training Dependency

By outsourcing AP and AR processes to ARDEM, the client wanted to eliminate the repetitive cycle of retraining new staff members. ARDEM provides a dedicated team well-versed in invoice processing services, payment processing services, and ERP-based workflows. So, the customer was assured of seamless operation without downtime.

3. Proven Track Record and Scalability

ARDEM’s strong history of delivering high-accuracy results and maintaining excellent client relationships made it the ideal long-term AP outsourcing services and AR outsourcing services partner. The ability to scale resources based on transaction volume provided flexibility as the client’s business expanded.

How ARDEM Solved the Client’s Problems

1. Comprehensive Accounts Payable Outsourcing Setup

ARDEM established a complete accounts payable outsourcing framework using the client’s SYSPRO ERP system. All invoices were routed to a dedicated AP mailbox managed by ARDEM’s analysts. The team handled vendor setup, vendor updates, invoice posting, and payment processing services through the SMBC bank portal. 

Payments due were identified, validated, and processed with complete accuracy. Additionally, ARDEM managed AP-related emails, ensuring timely responses to vendor inquiries and preventing payment delays.

2. Streamlined Accounts Receivable Outsourcing and Payment Posting

For accounts receivable outsourcing, ARDEM designed a clear process for tracking and posting customer payments. 

• Bank Statement Download: The team downloaded daily statements (SDC and FSI) from the SMBC bank portal. 
• Payment Posting: Two types of payments—ACH and remote deposits/lockbox—were posted on SYSPRO. 
• Verification: Using invoice numbers, sales order numbers, or customer names, the correct transactions were matched. 
• Adjustment: ARDEM utilizes the “AR Payments and Adjustments” module to post verified payments, apply credits, and maintain balanced ledgers.

This approach ensured that every transaction was accurate and properly aligned with remittance details, eliminating reconciliation errors.

3. Accurate Invoice Processing Services and Month-End Balancing

ARDEM’s invoice processing services included daily validation and posting of vendor invoices into SYSPRO. During the monthly balancing cycle, invoices were assigned to their correct accounting periods, ensuring compliance with the client’s internal financial policies.

All open invoices were accrued appropriately if the posting period had closed, maintaining continuity between accounting cycles. This systematic approach eliminated discrepancies and ensured that every invoice aligned with its corresponding period.

4. Journal Entry Management and Financial Accuracy

ARDEM supported the client’s month-end financial reporting by creating and posting journal entries for transactions not captured during invoice processing. These entries ensured that the books remained balanced and up to date.

Through its business process outsourcing model, ARDEM maintained accurate financial records and provided real-time updates to the client during bi-weekly review meetings.

5. Vendor Management and AP Automation Readiness

ARDEM handled all vendor setup and maintenance activities within SYSPRO, ensuring compliance and data accuracy. Each new vendor was validated before onboarding. The system was structured to handle payment cycles, journal reports, purchase order purges, and other AP outsourcing services tasks efficiently.

Although full automation was not yet implemented, ARDEM optimized manual workflows to prepare the client for future automation in both AP and AR processes.

6. Sales Order Processing Support

ARDEM also managed sales order processing for the client by handling hold orders. Orders meeting all release criteria were updated in SYSPRO, ensuring that only approved shipments moved forward. This integration between AR payments and order fulfillment strengthened end-to-end financial visibility.

7. Weekly and Monthly Balancing Activities

ARDEM’s financial analysts conducted structured weekly and monthly balancing activities across all modules, including: 

• Invoice postings 
• Payment cycle reviews 
• Journal and cash journal reports 
• Purchase and sales distribution tracking 
• AR aging reports 
• WIP and cashbook reconciliation 
• Inventory setup verification

These recurring tasks ensured accurate carry-forward balances, creating a strong foundation for subsequent accounting periods.

8. Yearly Ad Hoc Services and Special Projects

In addition to the core accounts payable outsourcing and accounts receivable outsourcing activities, ARDEM supported the client with yearly ad hoc financial services, including: 

• Creation of Cost Outflow Lists for SDC & FSI. 
• Vendor W-9 and W-8 Form Reconciliation. 
• AP Bank Charge Analysis for SDC & FSI. 
• AR Cash Inflow Tracking and Reporting.

These activities provided the client with comprehensive visibility into annual cash flow and vendor compliance, reinforcing ARDEM’s role as a strategic data processing and business process outsourcing partner.

9. Clear Communication and Client Engagement

ARDEM maintained constant collaboration with the client through bi-weekly meetings, addressing exceptions, reviewing performance, and discussing improvement opportunities. This transparent communication built mutual trust and made ARDEM an indispensable data processing services partner.

How the Client Benefited from ARDEM’s Services

1. End-to-End Financial Process Efficiency

Through accounts payable outsourcing and accounts receivable outsourcing, the client achieved full control over financial workflows. Invoice posting, payment creation, and reconciliation became streamlined, reducing turnaround time and ensuring accuracy across all transactions.

2. Significant Cost Reduction

By transferring repetitive AP and AR functions to ARDEM, the client saved substantially on hiring, training, and administrative costs. The partnership allowed their internal finance team to focus on strategic decision-making instead of transactional processing.

3. High Accuracy and Compliance

With dual validation and strict quality checks, ARDEM delivered near-perfect accuracy in invoice processing services and payment processing services. The process ensured compliance with financial controls, vendor requirements, and internal audit standards.

4. Real-Time Visibility and Reporting

The client now benefits from clear, real-time insight into AP and AR status. Payment postings, sales orders, and journal entries are easily traceable, giving management a comprehensive financial overview.

5. Long-Term Partnership and Scalability

The client has been working with ARDEM for over four years, relying on its business process outsourcing expertise for continued growth. The engagement began with a small scope and expanded as ARDEM consistently demonstrated reliability and performance. The framework is now designed to scale with the client’s operations, ensuring sustainability as the company grows.

With structured workflows, strong governance, and exceptional service delivery, ARDEM continues to empower the client with reliable accounts payable outsourcing, accounts receivable outsourcing, invoice processing services, payment processing services, optimized accounting cycles, and a future-ready business process outsourcing framework.