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Jun 02
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How Can You Save Costs with Outsourcing?

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When it comes to saving costs with outsourcing, it’s like unleashing the secret weapon of business efficiency. Discover the game-changing potential of outsourcing to optimize expenses and revolutionize your financial success. 

  • Labor Cost Reduction: Outsourcing is an affordable and convenient way to access a global talent pool with highly specialized skills and expertise, without compromising quality or overextending your budget. 
  • Operational Expense Reduction: Running a business involves many overhead costs, from office space to equipment. By partnering with an outsourcing provider, you can pass on the burden of those operational costs, freeing up your resources for more strategic investments. 
  • Economies of Scale: Imagine having a superhero sidekick who comes equipped with the latest tools and technologies. That’s what outsourcing brings to the table. Maximize value with expert outsourcing for efficient and cost-effective services as and when you need. 
  • Flexibility and Scalability: In the fast-paced business world, adaptability is the game’s name. With outsourcing, you gain the superpower of flexibility and scalability. Outsourcing allows you to scale your operations up or down based on demand, providing significant cost savings. 
  • Risk Mitigation: Every business faces risks, but outsourcing helps you build a fortress of protection. When you entrust certain functions to outsourcing partners, you gain access to their expertise and contingency plans. They’re the superheroes equipped to handle unexpected situations, shielding you from potential financial disasters. 
  • Access to Global Talent: The world is your talent pool, and outsourcing is the key to unlocking its full potential. By collaborating with outsourcing partners from around the globe, you tap into diverse skills and perspectives. Think of it as having a league of extraordinary professionals at your fingertips, ready to tackle any challenge while saving you money. 
Jun 02
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Where can I find a Reputable Outsourcing Services Provider?

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When searching for a reputable outsourcing services provider in the US, it’s essential to conduct thorough research and explore various avenues. Here are some expert tips to help you find the right outsourcing partner: 

  1. Extensive Online Research: 
  • Utilize search engines and industry-specific directories to identify potential outsourcing providers. 
  • Look for companies with a proven track record, positive client reviews, and case studies showcasing successful projects. 
  1. Professional Networks and Referrals: 
  • Tap into your professional networks and seek recommendations from colleagues, industry experts, or business associates. 
  • Attend industry conferences, trade shows, or networking events to connect with professionals who have firsthand experience with outsourcing providers. 
  1. Online Marketplaces and Platforms: 
  • Explore reputable online marketplaces and service providers like Ardem. These platforms offer a wide range of outsourcing professionals with verified reviews and ratings. 
  • Consider specialized platforms that cater to specific industries or functions, such as ARDEM for data entry. 
  1. Industry Associations and Forums: 
  • Engage with industry associations and participate in relevant forums or discussion boards. 
  • Seek recommendations from other professionals within your industry who have outsourced similar tasks or projects. 
  1. Request for Proposals (RFPs) and Interviews: 
  • Shortlist potential outsourcing providers and request detailed proposals that outline their capabilities, experience, and approach. 
  • Conduct interviews or video conferences to assess their communication skills, cultural fit, and level of expertise. 

Prioritize experience, expertise, reputation, and your specific business needs when selecting an outsourcing provider. Evaluate multiple options and make an informed decision that aligns with your goals.

Jun 02
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Why Should I outsource when I could just hire In-House?

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Outsourcing vs. hiring in-house: the dilemma faced by entrepreneurs. While there’s no definitive answer, outsourcing can transform businesses aiming for growth, efficiency, and a competitive edge. Here’s why: 

1. Cost Efficiency and Flexibility: Outsourcing empowers you to tap into a global talent pool, potentially reducing labor costs significantly, especially in regions with lower wages. It offers the flexibility to scale your operations quickly in response to market fluctuations without the added costs of hiring and training in-house staff. 

2. Access to Specialized Expertise: Outsourcing gives you access to specialized skills and expertise that may be very hard to find or costly to develop internally. Working with external teams provides access to professionals who excel in specific domains like HR,  IT development, digital marketing, or customer support. 

3. Focus on Core Competencies: Outsourcing non-core functions frees up internal resources, enabling your team to focus totally on strategic activities that drive business growth. Delegating routine tasks to external experts allows you to redirect energy towards innovation, product development, and enhancing the customer experience. 

4. Risk Mitigation and Compliance: Outsourcing can help mitigate risks associated with regulatory compliance, as service providers are well-versed in industry standards and regulations. External teams often have robust security measures, safeguarding sensitive data and protecting against cyber threats. 

5. Scalability and Business Continuity: Outsourcing offers scalability, allowing you to expand or contract operations swiftly in response to market dynamics. Service providers typically have contingency plans to ensure business continuity, minimizing disruptions during unforeseen circumstances. 

6. Increased Innovation and Fresh Perspectives: Collaborating with external teams brings fresh perspectives and diverse ideas, fostering innovation within your organization. Outsourced partners, with their exposure to different industries and markets, can offer valuable insights and novel approaches to problem-solving. 

7. Reduced Administrative Burden: Outsourcing eliminates the administrative burden associated with hiring, training, payroll management, and employee benefits. Service providers take care of these operational aspects, freeing up time for strategic decision-making.

Jun 02
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What is The Best Accounts Payable Automation Solution?

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Accounts payable is among the most critical tasks in a company that require high accuracy and efficiency. Automation enables businesses to handle their Accounts Payable system digitally using technology rather than manually and avoid errors. Accounts Payable Automation with experienced outsourcing companies can boost the function’s efficiency significantly.  

ARDEM for the best A/P Automation Solution 

One of the best accounts payable outsourcing providers is ARDEM. With the experience of decades in the business process outsourcing (BPO) industry, ARDEM can meet evolving Accounts Payable outsourcing needs of companies across industries. Trained Accounts Payable teams of the ARDEM can help companies to automate their entire Accounts Payable department or specific functions –  

  • Switch to e-invoicing
  • Go seamless with Accounts Payable approvals 
  • Match and verify invoices automatically 
  • High accuracy in data entry 
  • Automate PO or non-PO invoice coding and other processes 

Skilled talents at ARDEM can work on our cloud platforms and connect the client’s Accounts Payable system to meet their dynamic Accounts Payable needs. Their own proprietary software can provide 99.7% accurate invoice data.  

The ultimate results of Accounts Payable automation with ARDEM include: 

  • Clear Insight into the Payment Cycle
  • Time and Effort Saving 
  • Optimized Cash Flow 
  • Control Invoice Processing Costs 
  • Increased Productivity 
  • Easy Accounts Payable Accessible from Anywhere 
  • Accuracy for Timely and Correct Payments to Vendors 
  • Prevents Fraud 
  • Data Security 
  • Strengthen Relationships with suppliers and vendors 

Allow the best accounts payable outsourcing provider to handle your Accounts Payable function and witness how it becomes more efficient with automation.

Jun 02
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In Accounting, what is meant by Accounts Payable and Accounts Receivable?

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Accounts payable and accounts receivable are two indicators of the cash flow of a business and are recorded on opposite sides of the company’s balance sheet. 

Accounts Payable (A/P) 

  • A/P is a liability account on the company’s balance sheet.  
  • It represents what a business owes to its vendors for goods or services received. But invoices are not yet paid.  
  • Invoices may be from vendors for inventory, utility bills, rent, or other expenses incurred but not yet settled. 

Accounts Receivable (A/R)  

  • A/R is an asset on the company’s balance sheet.  
  • It tells about money a company is about to receive from its clients for goods or services.  
  • These are outstanding payments for services rendered or any other payments that are yet to receive from other sources. 

Both A/P and A/R impact a company’s cash flow, liquidity, and profitability. Therefore, efficient management of A/P and A/R is crucial for the company’s financial management.  

Most businesses consider outsourcing the best strategy to enhance the efficiency of A/P and A/R management. An experienced business process outsourcing (BPO) company can meet the varied needs of businesses across industries, including healthcare, retail, manufacturing, and others. Businesses can reduce costs and boost efficiency using automation. Qualified analysts at BPO companies deliver high-quality accounts receivables and payable data entry services. 

Jun 02
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What is Automation?

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Enterprises are shifting from manual business processes to automation in this competitive environment. 

  • In the business world, automation involves using technology and machines to perform repetitive tasks (like data entry, validations, approvals, etc.), streamline business processes (like accounts payable, accounts receivable, and others), and reduce manual efforts.
  • In automation, a bot is a software program with specific instructions enabling it to act automatically or with minimal human effort.  
  • Automation, assisted by RPA (Robotic Process Automation), results in increased efficiency, improved productivity, data security, reduced errors, better visibility, cut overall operational costs, and various other benefits.

Automation is becoming more prevalent in finance and enterprises prefer outsourcing services to automate their business processes. Often, accounts payable is the first area to be outsourced by businesses for automation advantages.  

Business Automation Outsourcing  

Experienced BPO (business process outsourcing) service providers first understand their client’s current process and break down the work steps to optimize each step to create the Bot. Then the process workstream is  

assigned to the Bot based on current needs.  

Like many businesses across industries transform your current workflow by utilizing Business Process Automation services with renowned BPO companies. Business Process Automation outsourcing with ARDEM can help to save your considerable time and effort.  

References: https://ardem.com/business-process-automation-services/

Jun 02
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Why is Accounts Payable Negative in The Cash Flow Statement when Accounts Payable Increased Year-over-Year?

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Accounts payable is a liability that expresses the amount a business owes to vendors and suppliers for goods and services received but not paid.  

  • When a company purchases goods or services on credit, it increases Accounts payable. When the AP debt is paid off, it decreases the pending account.  

Increased Accounts payable year-over-year means the company’s liability is increasing.  

However, if the company pays more than it accrued, the Accounts payable balance will be negative in the cash flow statement. The negative balance means the company has paid over the amount accrued. 

Therefore, a negative Accounts payable balance does not necessarily mean the payables balance has been reduced. Rather it indicates that the business paid off more than accrued.  

Such issues of overpayment indicate inefficient AP function in a company.  

Outsourcing to Boost Efficient AP Management  Experienced accounts payable outsourcing service providers can help companies in achieving the goal of efficient payables. Depending on the AP needs, companies can outsource the entire payables department or specific processes, like e-invoicing, autonomous matching and verifying invoices, accounts payable data entry, and other processes. Business process automation with renowned outsourcing companies results in reduced errors, fraud prevention, and timely and accurate AP payments.

Jun 02
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Why do companies need accounts payable?

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Accounts payable (AP) is a liability on a company’s balance sheet, representing how much the business owes to vendors or suppliers for goods or services purchased on credit.  

  • Companies need Accounts payable to keep track of debts to their vendors, suppliers, or creditors. 
  • With efficient Accounts payable management, companies ensure the processing of invoices on time and making payments accurately and timely to avoid late fees or penalties.
  • AP teams maintain sound relationships with their vendors by paying accurate and timely invoices.  
  • Companies can manage their cash flow by seeing what they owe. The accounts payable function provides crucial financial data for budgeting purposes.  
  • This department helps companies to identify their spending trends and make informed decisions for future purchases. 

Overall, Accounts payable is crucial for financial management. Most entrepreneurs think of delegating payables tasks to experienced outsourcing companies and benefit with: 

  • Leveraging the advanced technologies and expertise of the BPO company 
  • Reduced errors with RPA (Robotic Process Automation) 
  • Free to the resources from mundane tasks for better utilization 
  • Quick scaling up of Accounts payable teams with their growth 
  • Cost savings by implementing automated invoice processing significantly. 
  • Skilled Accounts payable teams can improve efficiency and enhance productivity 

Thus, approach an experienced accounts payable outsourcing service provider for efficient Accounts payable function.

Jun 02
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What are the roles and responsibilities of accounts payable? 

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The key roles and responsibilities of the accounts payable (AP) function are as follows: 

  • Processing invoices: Accounts payable teams verify the invoices received from suppliers and vendors. They check for any errors in the information given on the invoice for appropriate payments and avoid disputes. Outsourced accounts payable services help to process invoices efficiently in less time as they have skilled personnel and advanced technology to automate the process. 
  • Reconciling statements: The Accounts payable team is responsible for reconciling vendor statements with the company’s records. It ensures that the team has received and processed the invoices accurately.  
  • Remit payments: Payables issues required payments to vendors on time that strengthen the relationship with vendors.  
  • Resolving discrepancies: Accounts Payables analyzes and resolves discrepancies if found between invoices and POs. It provides all support or documents to other departments also. 
  • Reporting: The team reports to the company on vendor payments, and outstanding invoices regularly. 
  • Vendor Management: Accounts payable team is responsible for effective vendor management. They look at their payment terms and mode to be compliant and avoid legal issues. Whenever the company receives an invoice from a new vendor, the AP team needs to enter the details in the system and maintain the new vendor’s records accurately.  

Enterprises can automate their Accounts payable processes by utilizing third-party outsourcing services that have skilled personnel. Accounts payable outsourcing companies ensure that the financial obligations in a business are met correctly and on time.

Jun 02
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Is accounts payable a liability or an expense?

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An expense refers to a cost that has already been incurred for business operations. On the other hand, accounts payable (AP) refers to the owed money to suppliers/vendors for goods and services purchased on credit. Therefore, Accounts payable is not an expense.  

In a company’s balance sheet, accounts payable are recorded in the liabilities section as a current liability. However, when companies pay for invoices, it is recorded as an expense in their income statement. 

Let us say, ABC Enterprises purchases goods on credit worth Rs. 1 lakh from a vendor, the company’s Accounts Payable balance will increase by this amount as it is a purchase on credit and the amount is owed to the vendor. The enterprise has not yet incurred an expense. It will be considered an expense once the company pays off the amount and reduces the Accounts payable balance by Rs.1 lakh. 

Thus, accounts payable is a liability for a business. It is necessary to maintain AP function efficiently for favorable cash flow and effective budgeting with a clear insight into payables. An experienced business process outsourcing (BPO) partner can help companies to boost the efficiency and productivity of their AP function. They can offer high accuracy in invoice processing and data entry for better efficiency. 

References:  

https://www.investopedia.com/ask/answers/030515/are-accounts-payable-expense.asp  

https://www.investopedia.com/terms/e/expense.asp#:~:text=An%20expense%20is%20a%20cost,revenue%20to%20arrive%20at%20profits.