Accounts Payable Outsourcing
Many companies in the UK and US today are outsourcing their accounts
payable jobs to offshore destinations. This trend of accounts
payable outsourcing has several advantages for the company in terms
of cheaper labor and quicker work. Studies show that accounts
payable is the most widely outsourced finance and accounting
function. It is stated that the finance and accounting BPO
opportunity is one of the largest and fastest growing BPO segments.
It is estimated that Europe, the Middle East and Africa will the
fastest growing areas in the account payables outsourcing market,
although the US is predicted to remain the largest player finance
and accounting BPO market. As with almost all outsourcing cutting
costs is one of the biggest reasons for companies to outsource their
accounts payable processes, although strategic business decisions
play an important role nowadays.
A company can outsource all or a part of its account payables
business functions. The functions may include any of the following:
• Accounts Payable Invoice Scan
• Accounts Payable Workflow
• Accounts Payable Invoice Entry
• Accounts Payable Payment Disbursement
• Accounts Payable Invoice Online
Repository
• Travel and Expenses
Outsourcing accounts payable can have several benefits:
• Up to 25% to 50% annual A/P processing cost savings without
capital investment
• Greater, centralized control over payables across the enterprise,
despite of the actual physical location
• World-class quality and accuracy ensuring accurate matching and
elimination of duplicate and payments with errors
• Real-time tracking and reporting of all payables from the time
they are received from the vendor
• Automated routing of payables for approval irrespective of
location, enhancing control and manager productivity
• Elimination of the headache of recruiting, hiring and managing
clerical staff
• The ability to focus on strategic, core business operations
Thanks to accounts payable outsourcing companies can now focus on
developing their core competencies, knowing that a critical part of
their business, Accounts payable process, is professional hands at a
substantially low cost.
