Accounts payable automation refers to implementing software solutions designed to streamline and automate accounts payable processes within your organization. Businesses can reduce manual data entry, minimize errors, and improve overall efficiency by automating tasks such as invoice receipt, processing, and payment. For example, AP automation can lead to a 49% cost savings for invoice processing. One of the biggest benefits of outsourcing accounts payable processes is the potential for significant cost savings.
With accounts payable outsourcing, witness the magic of simplified payment processing that will make you wonder why you didn’t embark on this adventure sooner. While accounts payable outsourcing is a viable option for some organizations, many can get the benefits of outsourcing while maintaining higher efficiency and security using a procurement platform. Before implementing a move to outsourcing or automation, get your data in order to ensure you begin your new program with a clean slate. Take time to check and cleanse data for errors, duplicates, or issues that could hinder transparency in your AP processes. AP outsourcing solutions put efficient systems in place that allow you to pay vendor invoices on time (or even early) to enhance supplier relationships.
Consider AP automation as an alternative to outsourcing
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. Since their business model is built on low processing costs for invoices, they may kick exceptions processing back over to you or your team. If there are limited resources within your accounts payable (AP) department, it’s key how much does it cost to open a bar to identify how the function can scale to better process invoices when volume increases. This is in addition to all of the other financial tasks you need to take on to keep the business growing. And let’s not forget about the joy of having access to valuable data and insights.
Improve Cash Flow Management
For example, back-office employees don’t have to spend hours on manual data entry, recording disbursements and bookkeeping. Most businesses still use outdated and expensive systems like optical character recognition (OCR), or even paper invoicing, to manage their AP processes. Ask potential providers about their data privacy and security policies and any rate of return calculator certifications or audits they may have undergone to demonstrate their commitment to safeguarding your financial information. But by considering factors such as cost, scalability, and the level of control desired, you can make an informed decision about the best approach for your business. Effective communication and customer support are crucial for a smooth partnership. The provider should have clear communication channels and be responsive to your queries and concerns.
Drawbacks of an Accounts Payable Outsourcing Service
This strategic reallocation of efforts not only enhances overall business efficiency but also fosters a more dynamic and competitive organizational environment. Book a 30-min live demo to see how Nanonets can help your team implement end-to-end AP automation. Increase your results, improve your operations, and extend your in-house capabilities. Join our community of finance, operations, and procurement experts and stay up to date on the latest purchasing & payments content. To see how automation can improve your business outcomes with a scalable solution, request a demo of Order.co. To outsource your accounts payable easily, here’re a few things to keep in mind.
Regular reporting and meetings to discuss performance and improvements should be part of their service. To address potential communication issues, ensure that the provider offers multiple ways to communicate, such as phone, email, and chat support. To maintain better oversight, establish clear communication channels and regular reporting protocols with your outsourcing partner. Request real-time dashboards or reports that provide transparency into the AP process. Book this 30-min live demo to make this the last time that you’ll ever have to manually key in data from invoices or receipts into ERP software.
Outsourcing accounts payable helps businesses avoid these costs while using the best document management and business intelligence tools available. There’s nothing worse than conducting an accounts payable audit and discovering errors. Depending on actual vs applied overhead the rules that govern your industry, errors could even lead to compliance issues.
- This can range from invoice receipt and processing to vendor management and payment processing.
- But it involves incurring other costs such as investing in the software and allocating time for training the employees to use the software.
- Efficient invoice receipt and processing can lead to cost savings and improved accuracy, reducing the likelihood of manual data entry errors and facilitating better cash flow management.
- This strategic reallocation of efforts not only enhances overall business efficiency but also fosters a more dynamic and competitive organizational environment.
- Outsourcing accounts payable processes can also give businesses enhanced visibility and control over financial transactions.
Accounts payable outsourcing can offer significant benefits to businesses, including cost savings, improved efficiency, and enhanced visibility and control over financial transactions. Accenture is a global professional services firm renowned for its expertise in providing a wide range of outsourcing solutions, including accounts payable outsourcing. With its extensive experience and a strong presence in the US, Accenture offers valuable support to businesses seeking to optimize their accounts payable processes. They provide a range of services, such as invoice receipt and processing, vendor management, and payment processing, ensuring timely and accurate payments for their clients. Efficient invoice receipt and processing can lead to cost savings and improved accuracy, reducing the likelihood of manual data entry errors and facilitating better cash flow management. By partnering with an experienced outsourcing provider, your organization can benefit from their expertise and technology to streamline this function.
While this does take some of the supervisory duties off your hands, the lack of control can hinder communication, transparency and efficiency. It also ensures records are kept of all financial aspects of purchases made by the company. If you would like to explore further how Near can help you outsource your accounts payable roles to professionals in LatAm, book a free consultation call today. Set up touchless AP workflows and streamline the Accounts Payable process in seconds. Join our community to get finance, operations, and procurement resources straight to your inbox. Order.co helps high-performing clients in diverse industries increase the efficiency of their procurement process.
