Reasons to Outsource Invoice Processing for Small Businesses

Accounts Payable outsourcing services can provide the relief your accounting department needs. The benefits are clear — lower costs, updated processes, and fewer errors, just to name a few. Outsourcing can solve some of the issues that come with the rapid growth of your business. If so, then it’s high time you adopted a smart solution to streamline your processing workflow and outsourced your invoice processing services. Outsourcing invoice processing to an experienced company like us would provide access to advanced software and resources that might have been otherwise unavailable to you. For a business to reach great heights it must be technologically advanced.

• An online invoice tool designed specifically for that purpose can also allow easy access to your invoices without compromising security.
• As we mentioned, there are pros and cons of outsourcing your AP tasks.
• When you hire new employees, you don’t just hire anyone — you consider their skillsets to determine if they’d be a good fit for your company.
• When you work with a provider that understands how to optimize the process, you can often reduce these costs by up to 50%.
• Upgrading old accounting systems to modern tools is costly and time-consuming.
• Having to process invoices on your own can be a time-consuming and labor-intensive task.

Outlined here is a recommended process that will enable you to engage a vendor when you decide to outsource, or even when you have started to think about it. It is possible that at the start, as you evaluate vendor capabilities and suitability for your requirement, you could be engaging with more than one potential vendor. It is also possible, depending on the volume of your work, you engage more than one vendor, which also serves as a back-up arrangement for you in case one of them is unable to operate for one reason or another. Facility Management, to ensure people have a clean and hygienic workplace and access to the physical location where the work is being done, is access controlled, in order that client data is secure. Turnaround time – The partner should be equipped to deliver the required service speedily.

Resources

By outsourcing the work to us you can get your invoices processed much faster and thus ensure better cash flow. With the use of the latest technologies, we ensure speed, efficiency, and accuracy in the service we provide. This is because professional companies are known for their high levels of efficiency and professionalism. When you outsource your invoice processing to a qualified provider, you can be sure that your invoices will be processed in a timely and efficient manner. This will reflect positively on your company, and help to build trust and credibility with potential customers.

• Specialized recognition technology guarantees that all fields of the invoice like date, amounts, vendor ID, due date and specific instructions are accurately noted.
• They take over the risk of defaults and administration costs against payment.
• You can use software tools, apps, or plugins that can connect your invoicing provider with your accounting, CRM, or payment systems, and streamline your workflow.
• With far less paper to track and a standard process in place, you’ll benefit from fewer errors or late payments—without having to invest in equipment, train new staff, or overhaul your procedures.
• Familiarity with Enterprise financial management systems – Similarly, knowledge of systems like SAP and Peoplesoft used by businesses for handling their finance and accounting, is a plus.

Additionally, when you own your own AP process you can turn accounts payable into a strategic partner for your business. Flexibility – If you’ve worked in AP long, you know that things don’t always go perfectly. All companies have exceptions processing, but depending on the contract with your AP vendor, they may not.

Company

Outsourcing the chore to us not only makes the work simple and efficient but also is the most economical option. Moreover, hidden costs such as negative cash flow are also minimized. In this way our services allow the client companies to save a lot of money which can be used for funding other essential operations. Outsourcing the invoice processing to us would allow clients to cut down a substantial amount of management expenses. Here at eDataIndia, we use automated machinery to eliminate the direct costs referring to the costs incurred due to physical processing.

You should also have a contingency plan in case of any issues, errors, or disputes. Having a clear and detailed contract will help you avoid misunderstandings, confusion, and conflicts. Additionally, the funds saved by outsourcing the procedure to us can be utilized for other business activities.

Use performance tools to make sure your accounts payable outsourcing team measures up

This can be a great way to free up your time to focus on other aspects of your business. For small businesses monitoring of hundreds of vouchers is a major problem more so as they are spread out over different departments to which they pertain to. But by having one establishment that processes all invoices, right from scrutinizing them, entering them in the systems and following up on receipts and payments you have better control over your invoices. This is apart from freeing up your limited staff to take care of other priority work. Are you having a hard time clearing out all your pile of invoice processing backlogs? If your business has been committing the same mistakes as we have discussed above, then it is possibly the perfect time to outsource your invoicing.

For larger companies, they often have several staff that handles invoices across their various departments. Most importantly, you’ll make the most of your cash flow by paying what you owe on time. This will reap better business relationships and strengthen your company’s reputation. Let’s take a look at 7 typical AP process steps and the benefits of outsourcing them.

Your invoice processing costs are too high

Depending on your situation and how much it costs to outsource accounts payable for your company specifically, you could significantly cut costs through outsourcing. Outsourcing accounts payable can be a practical solution for businesses looking to thrive in a fiercely competitive environment, while simultaneously cutting down on costs. When you outsource your invoice processing to a reputable company, you can often get your invoices processed and paid much faster than if you process them in-house.

We help people in a difficult financial situation take steps toward a better one, but first and foremost, we help hard-working companies get paid. Outsourcing is likely to introduce modern AP software as well as collaboration tools to boost your efficiency. Your in-house team will probably need time to familiarize themselves with the same.

Here are 5 reasons for small businesses to outsource invoice processing activity for sustainable business growth –

They will create your invoices, send them and monitor whether outstanding invoices are paid. This saves a lot of time, because you don’t have to create and send an invoice reminder every time. For example, suppose a software development firm outsources Key Reasons Why Your Business Should Outsource Invoicing a seasoned project management consultant to review procedures, identify congestion, and provide recommendations for changes. Agile approaches, collaborative tools, and clear communication channels are implemented by the consultant.