Outsource Accounts Payable Benefits to Businesses
by Pankaj Kumar |October 26, 2017
As businesses constantly seek ways to drive savings to their bottom line and establish process efficiencies across the organization, outsource non core business areas, such as low-value functions in the Accounts Payable (AP) process, is a perfect place to focus. Accounts Payable is one such area that lends itself very well to outsource. AP outsource can transform manual, paper intensive AP functions into a fully automated process. By outsource and automating AP activities, many businesses are turning a cost burden into an advantage including reducing costs, leveraging greater capabilities and delivering greater business value.
There are many benefits achieved through AP outsource including:
- Reducing Costs
Companies use up enormous amounts of money every year to process invoices. Outsourcing has been shown to reduce accounts payable costs to as much as 50 percent or more with no capital investments. To put that into perspective, the Institute of Management & Administration (IOMA), a management and AP bench marking organization, concluded that the average cost to pay an invoice is $14.97 with a median processing cost of $6.41.
- Leverage Expertise and Resources
Companies that outsource Accounts Payable activities can tap into the vast pool of competent talent and the latest software and technology that you may not have in-house to improve business operations.
- Better Document Management and Real-time Access
With Accounts Payable outsource, all statements are managed digitally and can be accessed anytime they are needed. When information is kept digitally, companies can work more efficiently and productively. In addition, invoices that are web-based are easier to manage and process especially for remote approves.
- Improve Efficiency
The Aberdeen Group found that companies that leverage outsource can process invoices as much as 59% faster than other companies that don’t outsource. In addition, we all know that paper is the enemy in any AP department. Research shows that eliminating paper, increases efficiency and drives cost savings. AP outsourcing is one of the fastest ways to eliminate paper.
- Greater Focus on Business
Automating processes and reducing administration work, allows staff and management to concentrate more on other areas directly related to the strengthening the business.
By outsource the lower-value functions of AP, businesses have more time to focus on their core business strategy. This is simply smart business. To learn more about AP outsource and how it can benefit your business, contact the Bright Outsource Bookkeeping.
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