Managing accounts payable is a complex and time-consuming task that requires businesses to be extremely diligent and organised. To ensure accuracy and avoid errors, businesses must use a system of checks and balances in order to keep track of all accounts payable activities. One way of achieving this is through accounts payable outsourcing. Outsourcing accounts payable can help businesses streamline the process and free up internal resources to focus on other tasks. By outsourcing accounts payable, businesses can benefit from improved accuracy, enhanced security, and faster payments, leading to improved cash flow and overall efficiency.
In this blog, we will discuss the topic of accounts payable outsourcing and its key benefits for business.
Poll results
In our most recent LinkedIn poll, we asked our social media followers what the main benefits of accounts payable outsourcing were. Continue reading for the full results.
Accounts payable outsourcing: what we found
Cost and time savings – 71%
With over two-thirds of respondents selecting cost and time savings as the main benefit of accounts payable outsourcing, it highlights the growing recognition of the financial advantages offered by this practice. Let’s explore why this benefit holds such prominence:
Enhanced Efficiency: By outsourcing accounts payable processes to specialised service providers, companies can leverage their expertise and streamlined systems. This leads to faster processing, reduced errors, and improved accuracy, ultimately saving valuable time and effort for in-house teams.
Scalability and Flexibility: Outsourcing allows organisations to adapt to fluctuating workloads more effectively. During peak periods, the outsourcing partner can quickly ramp up their resources, ensuring timely processing and avoiding bottlenecks. Conversely, during slower periods, companies can scale back the outsourced services, optimising costs.
Reduced Operational Costs: Outsourcing eliminates the need for maintaining an in-house team solely dedicated to AP tasks. This translates into significant cost savings associated with recruitment, training, salaries, benefits, and infrastructure. Additionally, outsourcing partners often have access to economies of scale, reducing transaction costs and enhancing overall cost efficiency.
Access to Advanced Technology: Reputable accounts payable outsourcing providers invest in cutting-edge technology and automation tools. This allows for process standardisation, greater accuracy, and improved visibility into financial operations. By leveraging these technological advancements, companies can streamline workflows and achieve cost savings through optimised resource allocation.
Increased profitability – 29%
Although increased profitability received a lesser share of the vote at 29%, it is important to recognise its significance as well. By leveraging the expertise of outsourced partners and benefiting from improved efficiency, companies can focus on core business activities, drive revenue generation, and ultimately enhance their profitability.
Decreased workload – 0%
While no respondents chose decreased workload as the main benefit, it is crucial to acknowledge that the absence of votes does not negate its potential importance for certain organisations. Decreased workload can relieve internal teams from mundane, repetitive tasks, allowing them to focus on higher-value activities, strategic initiatives, and building stronger supplier relationships.
In conclusion, It is crucial for organisations considering accounts payable outsourcing to evaluate their specific requirements, conduct due diligence in selecting a reliable partner, and align their goals with the potential benefits. As outsourcing continues to evolve and become more accessible, companies can leverage this practice to optimise their financial operations, drive growth, and gain a competitive edge in the ever-evolving business landscape.
More information
B2BE’s experience in the supply chain sector allows our customers to build, expand and adapt successfully, enabling greater effectiveness. To engage with B2BE and offer feedback on what matters most to you and your business, make sure to follow us on LinkedIn and across social media. You can also vote in our latest LinkedIn poll. If you’d like to discuss your future supply chain strategy, get in touch with us.