Outsourcing is no longer just for customer support. The benefits of finding industry experts to complete an expensive, time consuming process at your organization can have a significant positive impact on your business. If you’re looking to hire a third party to complete a business process for you, whether it’s sales and marketing or a highly technical process, you can find a company to do it. Outsourcing is even becoming more common in finance departments, whether it’s accounting, reporting, or even accounts payable (A/P). Because of the resources needed to process invoices and massive amounts of paperwork involved, accounts payable specifically has been an area of increased outsourcing. An outsourced A/P team will handle every part of your A/P workflow while ensuring data accuracy and full transparency. Below we’ve listed the top nine reasons for companies to outsource their accounts payable process.
The Top 9 Reasons to Outsource Your Accounts Payable
- Reduce costs
At Recordsforce, we’ve found that on average, accounts payable departments spend $15.61 to process a single invoice received, while almost one-third average as high as $38.77! Even if you’re only processing 100 invoices per day, that means you’re spending $1,561.00/day and $391,811.00 per year to process invoices. Outsourcing your accounts payable process can allow you to cut that down as much as 10x, down to under $1.00 per invoice.
- Leave compliance to the experts
Staying on top of compliance isn’t easy. Whether it’s a state-specific mandate like the Massachusetts Resident Privacy Law, the Sarbanes-Oxley Act, the Gramm-Leach-Bliley Act, FERPA, FRCP, HIPAA, or a different regulation, you need to be sure that you’re upholding the standards that apply to you. That’s a big task! When you outsource your accounts payable process, you get peace of mind in addition to financial benefits. You can be sure that the professionals you’re putting in charge of your invoice payment process are following the letter of the law.
- Free your A/P employees to do other tasks
The biggest asset your company has is its people. Your employees are the ones that are driving your company towards its goals on a daily basis. Why spend their time and your money having them do tasks that can easily be outsourced to a 3rd party? Outsourcing your accounts payable process does not have to mean firing people. Rather, free them up to do the work that machines can’t, such as assisting with collections, dealing with A/P process exceptions, working with vendors to improve their payment terms or process. Focusing on great work that moves the business forward instead of busy work.
- Get work done faster
At Recordsforce, we’ve spent the last 16 years improving. That’s 16 years of dedication to getting better, faster, and more accurate with our accounts payable processes. That’s why we guarantee a 24 hour turnaround time on any invoice that comes through our system. Putting your A/P process in the hands of the experts gets work done faster.
- Eliminate errors
Your accounts payable department is only human, and humans make mistakes. A/P outsourcing companies have processes in place to ensure your invoices are processed error-free. If you’re tired of dealing with errors, you may want to consider outsourcing.
- Increase transparency
A good outsourced accounts payable process allows you to see the status of every invoice in your queue. At Recordsforce, we’ve created a portal that does just this. Getting messages from impatient vendors wondering where their money is? Just check the portal and give them an exact answer.
- Never miss a beat
If someone on your team takes time off, gets sick, or is otherwise unable to come into work, it’s a big part of your department out of commission. Say you have 4 accounts payable clerks on payroll. Even losing just one of them means a 25% reduction in the efficiency of your A/P department. If someone at Recordsforce can’t come in, we have dozens of employees ready to seamlessly step in to make sure your invoices are processed quickly and on time.
- Protect yourself from disaster
Let’s face it: natural disasters happen, and they’re out of your control. Floods, earthquakes, fires, and more are all threats to your business. The biggest threat to recovering damaged documents is the growth of mold and mildew on paper, which happens instantly. By outsourcing your invoicing process you’ll insure yourself against having to deal with documents that are deteriorating in your hands after a disaster. Everything is stored safely and securely the online.
- Close out quickly
Time is money. Outsourcing allows you to close the loop and make sure that your vendors are being paid quickly so you can close your books for your monthly, quarterly, and annual cycles.
Outsourcing your accounts payable department can drive lasting positive change at your organization. This could be from improved data accuracy, faster turnaround times, or cost-savings that you’ll see in your bottom line.
Need another reason you to outsource your accounts payable? Learn how The Rogers Corporation greatly reduced costs and increased their quality of work by leveraging Recordsforce for help with their accounts payable process.