Clearing Invoice Backlogs and Improving AP Efficiency for an Agricultural Equipment Leasing Firm

Clearing Invoice Backlogs and Improving AP Efficiency for an Agricultural Equipment Leasing Firm

Our client is a U.S.-based company that leases agricultural equipment—such as tractors and harvesters—to large farms and organizations across the country. As a critical support partner to the agriculture sector, they rely on timely vendor payments and efficient invoice processing to maintain operations.

Challenges Faced by the Client

The client approached ARDEM with two major issues impacting their accounts payable (AP) function: 

1. Severe Invoice Backlog and Vendor Escalations

Due to a growing backlog of unpaid invoices and unreconciled statements, vendors began escalating via emails and calls. It disrupted internal operations and relationships.

2. Staffing Instability and Attrition 

High turnover in the client’s AP department left tasks incomplete. A temporary worker lacked full understanding of AP processes. It added to delays in invoice processing and vendor payments. 

3. Complex Vendor Statement Discrepancies 

One major vendor submitted statements from 15–20 different locations with inconsistent invoice formatting. Invoice numbers in the client’s system often didn’t match the reference numbers. It led to failed reconciliations and confusion.

Why the Client Came to ARDEM

The client needed an experienced partner to stabilize their AP operations and eliminate the growing backlog. Their primary goals were:

1. Clear the Backlog of Past Due Invoices

Especially those from high-volume, high-dollar vendors.

2. Organize the AP Mailbox and Prioritize Incoming Requests 

Ensure proper categorization of emails and identify invoice-related communications. 

3. Improve Accuracy and Processing Time 

Establish a consistent AP outsourcing process to improve data entry accuracy and prevent duplicate processing.

4. Handle Complex Reconciliations

Reconcile mismatches between invoice numbers and reference numbers from multiple vendor locations.

How ARDEM Solved These Challenges

ARDEM implemented a multi-step, team-led strategy under tight timelines:

1. Fast Onboarding with Internal Expertise

Despite minimal client training, ARDEM’s team leveraged prior project experience in statement and AP mailbox reconciliation to begin live production in just 2 days. 

2. Strategic Backlog Prioritization 

Focused on major vendors with the highest outstanding amounts and invoice volumes. Used January statements to capture past-due items from November and December without duplicating work.

3. AP Mailbox Categorization and Cleanup

ARDEM manually categorized 100–250 emails/day into payment queries, invoices, credit notes, and vendor communications. Thus, we simplified the internal workflows.

4. Reconciliation Strategy Implementation 

Identified that the mismatch was due to invoice numbers being entered as reference numbers. Using PDF-to-Excel conversion tools, ARDEM reconciled over 3 weeks of vendor statements and resolved the discrepancies.

5. Data Entry and Invoice Processing

In March, ARDEM began full invoice processing for PO-based invoices with over 99% accuracy. Thus, we started meeting the client’s AP outsourcing goals. 

6. Scalable Team Expansion

Started with 2 FTEs and scaled to 4+ as additional tasks like invoice processing and vendor setup were added due to ARDEM’s performance.

How the Client Benefited from ARDEM’s AP Outsourcing Services

✅ Backlog Elimination and On-Time Vendor Payments

ARDEM cleared the client’s backlog of past-due invoices by prioritizing high-volume, high-dollar vendors. This ensured that payments were processed promptly, and vendor relationships stabilized. 

✅ Zero Payment Escalations 

Since partnering with ARDEM, the client reported a complete stop in vendor calls and payment inquiries—demonstrating improved responsiveness and credibility.

✅ 99%+ Invoice Processing Accuracy

Through ARDEM’s invoice processing services and manual data entry services, and quality checks, the client achieved high accuracy, even across PO-based and location-specific vendor records.

✅ Standardized and Scalable AP Processes

ARDEM introduced structured workflows for both statement reconciliation and mailbox management. These processes are now scalable and repeatable, reducing dependency on internal staff, through reliable accounts payable outsourcing services.

✅ Resolution of Vendor Discrepancies 

ARDEM successfully identified and resolved a long-standing issue with mismatched invoice/reference numbers from a key vendor (Napa), improving reconciliation and enabling timely payments.

✅ Increased Operational Capacity

With ARDEM’s support, the client scaled from 2 to 4 FTEs and added invoice processing and vendor setup. Thus, the client was able to extend their accounts payable team without hiring internally.