Outsourcing Accounts Payable helps you leverage the best AP talent in the business, improves your efficiency and flexibility, takes the burden off your resources and gives you more time to focus on your business.
The benefits of outsourcing Accounts Payable Process are well documented but if you are the owner of small/medium business, the real problem is to know whether it is the right time to opt for outsourcing or should you wait until the situation presents itself.
If you are in a similar boat right now, then this blog is for you. Here are the 4 signs that indicate that business needs to leverage outsourced accounts payable services for better growth:
High invoice processing costs:
Invoice processing forms the crux of Accounts Payable Services which takes majority share in time resources and also the overall cost of the process. But that doesn’t mean the business has to shell out a lot for processing invoices and yet, unfortunately, most businesses do. Given an estimated invoice process cost stands at $30 for an average company adopting a manual invoice process, its high time to adopt an automated invoice process offered by outsourced Accounts Payable Services.
Even if you got an automated invoice processing, having an inefficient workflow, can further stress the invoice process processing costing more time and resources further increasing the cost of operations. By outsourcing your accounts payable services, our AP specialists can help you streamline your process and boost the efficiency of invoice processing helping you decrease the total cost incurred.
Scaling-up your business:
A growing business can put a lot of stress on the accounting department especially when you are working with a lean workforce. Multi-tasking can be a daunting task which down the line can decrease the productivity of the employees. Since the business growth directly translates to increase in invoice processing and adds the high cost of invoice processing, unorganised workflow and late or missed payment to the mix, your accounting could be in disarray impacting whole business.
Hiring dedicated AP resources can help, but when you need to scale-down the business you might end up paying even when there is less work. By outsourcing Accounting Payable Process, especially you can scale-up or scale-down as you wish and you end up paying for only what you need which helps you put the costs in check, savouring the fruits of business growth.
Lack of control and streamlining in AP Process:
Given how important an efficient AP process is for vendor relations, working capital management, the majority of small to medium business lack a streamlined AP process which is crucial to step-up their growth. A limited number of resources and budget can result in an unorganized workflow which can result in delayed, missed or duplicate payments costing a lot of money, time and resources while reducing the efficiency.
Having a streamlined and organized AP process can help you boost efficiency while decreasing the cost of operations and outsourcing the AP Process is the simplest way to accomplish them.
Vendor Relationships are taking a hit:
Relationships with supplier and vendors are extremely important for any business, even more so for small and medium businesses. Accounts Payable process plays a crucial role in maintaining a safe and comfortable sail with the vendors paving the way for a fruitful long-term relationship.
Most of the businesses extend the payment dates to the deadline to increase the cash reserves and this sometimes can fire back. And nothing makes the vendor relations as sourer as delayed or missed payments caused by an inefficient Accounts Payable Process. While it is possible to craft a strategy to optimize AP process that makes timely payments, earns early bird discounts while increasing the working capital when needed, it needs help from expert accountants and AP professionals.
In short, you need to outsource your AP process to an expert team of accountants like us folks at Back Office Accountants who can get the work done with improved efficiency at less cost. Having worked with hundreds of small to medium businesses, our accountants and AP process specialist have mastered the art of crafting an organized and streamlined Account Payable Process that can improve your efficiency of invoice processing, improves vendor relations, imparts a control and accountability while costing you way less than in-house Accounts Payable.
At Back Office Accountants we also offer Remote Accounts Payable Services that gel well with current remote workforce models giving you a lot of flexibility to get your accounting works done remotely from any location in the world. If you are a business owner looking to outsource your Account Payable Process or want to hire Remote Payable Services you can contact us here: https://www.backofficeaccountants.com