Invoice processing is a crucial process for the accounts payable department and paying your vendors accurately and timely is a must. Even a small error can have a huge impact on your business’s reputation. It also may hinder the way that customers look at your company.
As a business, you will be could be receiving hundreds of invoices on a daily basis. This a time-consuming and mundane process which can take its toll on your employees while eating away productivity can profit. Ill-managed AP processing can result in wrong or delayed payments that will not only effect cash flow but also have an impact on your business’s reputation.
By choosing to outsource your AP invoice processing, you use a service provider that already knows the ins and out of AP processing. You can be assured that these experts will use the correct checks and balances to ensure your business is never short on cash flow.
Here are four benefits that your business will incur by outsourcing your AP invoice processing:
- Automate your entire AP process– AP processing service providers can receive invoices on your behalf via using UPS post office boxes for paper invoices and email for electronic invoices. This way, your business can save itself from opening mail and tracking electronic invoices. The AP processing service provider scan/receive invoice, index then load the digital invoices and data to a business’s ERP system.
- Processing invoices in real-time – The best part of outsourcing is that your AP Department can now monitor the entire AP process in real-time and not worry about getting the invoices processed. Every invoice will be loaded into a business’s ERP system daily in order for the AP department to now concentrate on getting the bills paid. At a click of a button, your team can get the exact details of a payment and if there are any discrepancies in the amount paid.
- Invoicing Errors– errors in payments to vendors can have a huge impact on your business. While errors in payments to your vendor can hurt your business’s reputation, over payments to your vendors can lead you to a cash crunch. Outsourcing your AP processing can get rid of these issues by making sure invoice data in entered correctly and payments are made on time and even sooner in order to receive quick pay discounts that many vendors offer nowadays.
- Reporting– As a part of outsourcing your AP invoice processing, you will be able to run detailed reports per your business’s requirements. These reports will help your team identify each vendor with the minimum or maximum outstanding balance due, the most payments made to a specific vendor etc. You not only can view your invoice status details at a glance, you can plan out the future of your business to ensure that your always running at peak performance.