The Treasure Chest of Benefits: Outsourcing Accounts Payable
X-Marks the Spot for Outsourcing Accounts Payable
Outsourcing your accounts payable is like unlocking a treasure chest of benefits for your business with a single strategic decision. Accounts payable refers to business operations where you pay money to a vendor, worker, or another party. It includes tasks like managing and paying invoices and other financial obligations. Many business run accounts payable through their accounting team or an office manager without hiring a specialized person who truly understands the purpose of a good accounts payable process. Outsourcing this function to a specialized third-party provider allows your business to streamline its financial processes, enhance operational efficiency, and achieve cost savings. It also enables you to set up a form of internal control which is important for avoiding embezzlement or theft.
Riches Galore! The Benefits of Outsourcing Accounts Payable.
Let’s break down some of the benefits of outsourcing in more detail.
- Cost Savings: Outsourcing your accounts payable can save costs by reducing the need for in-house staff, office space, equipment, and software. Outsourced accounts payable can save up to 90% of hiring an in-house employee.
- Improved Efficiency: Outsourcing accounts payable can streamline your financial processes, improving efficiency. Experienced outsourced providers utilize advanced technologies and automated workflows to process invoices efficiently, validate data, and manage payment cycles. This reduces errors, eliminates manual tasks, accelerates payment processing, and improves cash flow and vendor relationships.
- Access to Expertise: Outsourcing your accounts payable gives you access to specialized expertise. An outsourced consultant can handle complex tasks such as managing vendor inquiries, resolving payment discrepancies, and reconciling accounts, which can be time-consuming and require specialized knowledge.
- Enhanced Client Relationships: Timely and accurate client payments are crucial for maintaining positive vendor relationships. Outsourcing your accounts payable can help ensure that payments are processed accurately and on time, improving client satisfaction and building stronger relationships.
- Focus on Core Business: Outsourcing accounts payable can reduce the time spent on transactional tasks, allowing finance teams to focus on strategic activities. This allows your business to focus on its core competencies and strategic objectives by entrusting the routine and time-consuming tasks of accounts payable to a third-party provider, your internal finance team can focus on more strategic activities such as financial planning, analysis, and decision-making, adding more value to your business.
- Establish Internal Controls: 75% of employees admit to stealing from their employer at least once. Outsourcing accounts payable, the people who process commissions and expenses greatly reduce employee theft opportunities by ensuring payment requests are reviewed by an unbiased third party.
- Scalability: Outsourcing your accounts payable provides scalability for your business. As your business grows or experiences fluctuations in transaction volumes, an outsourced provider can quickly scale their resources and technology to meet your changing needs.
NOW CFO Can Be Your Guide
Outsourcing your accounts payable can bring significant benefits to your business, including cost savings, improved efficiency, access to expertise, enhanced vendor relationships, increased focus on core business activities, and scalability. Consider partnering with NOW CFO to optimize your accounts payable processes and drive more extraordinary financial performance for your business.