Outsourced vs In-house e-Invoicing Solutions

Outsourcing your accounts payable process, ensures you do not violate any state or federal laws. Experts you are entrusting your invoicing to know the laws more intimately than a regular accounts payable employee at your company does. Additionally, when you own your own AP process you can turn accounts payable into a strategic partner for your business. Administrative, tracking & reporting – Since you’ll be paying this vendor a fee to manage your AP, they’ll often provide reporting among other administrative functions. Managed AP services can offer reporting on cost per invoice and time to payment among others, and routines such as analysis, month and year-end close, reconciliation, and AP document management.

You won’t have insurance, pensions, or office space and equipment to worry about, so depending on your situation, outsourcing may save you money. A Las Vegas-based Loan Production Office of a bank approached us with financial and accounting back-office support requirement. Our team provided the required service and helped the client to efficiently manage the huge volumes of paperwork.

• To help you and your company along the way, we have gathered our six best tips to get billing on the agenda again, and maybe the tips will make the work feel easier and more fun?
• When you outsource invoice processing, you can be sure that your invoices will be accurate and timely.
• Freeing your employees from processing invoices means that they can be assigned to other areas where they are the most needed.
• The latter are merely logistic issues related to mostly electronic invoices.

A roadmap for unpaid invoices is suddenly a lot faster and easier to implement. Then you will have the money in your account immediately and are insured against bankruptcy risks. Never delay your payments, gain customer trust, and manage your working capital better with our accounts payable services. When you outsource your invoice processing to a reputable company, you can often get your invoices processed and paid much faster than if you process them in-house. Having to process invoices on your own can be a time-consuming and labor-intensive task.

Improved Value

Stay tuned for our next article, “Why Small Businesses Need Online Invoicing Solutions,” where we delve deeper into the benefits of online invoicing. On the other hand, investing in a single all-in-one solution or building adequate infrastructure to ensure a streamlined workflow can be expensive and difficult, so it may not be a preferred solution. Derek Gallimore has been in business for 20 years, outsourcing for over eight years, and has been living in Manila (the heart of global outsourcing) since 2014. Derek is the founder and CEO of Outsource Accelerator, and is regarded as a leading expert on all things outsourcing. Maintaining the quality of work and outputs is one of the telltale signs of whether a team is efficient or not.

The ARDEM invoice manager receives the vendor formats in different physical and electronic formats, once the physical documents have been converted using OCR technology. ARDEM Data Capture uses a mix of machine learning and artificial intelligence to map out the multiple invoice formats and standardize the extracted data. AIM or the ARDEM Invoice Manager is a cloud-based network that provides you with a complete solution for AP and invoice processing. Invoice management is defined as a backend business process that deals with the management of all financial and delivery transactions between a business and its vendors or suppliers. In a previous blog post, we covered how outsourcing your non-core competencies can drive business growth and competitive advantage.

Invoice Automation Services

If they experience any issues that interrupt service for you, there’s little you can do to make sure your own vendors are still getting paid on time. Increased resources – Outsourced AP solutions are generally going to come equipped with technology (i.e. AP Automation platforms) to handle their workflows. This means that they’ll have systems in place to handle both a PO-backed or non-PO process, discrepancy resolution, vendor management and sometimes administrative support. When upper management is looking at these costs from a high level, they will likely be interested in exploring all options for reducing those costs for invoice processing, including outsourcing. The biggest advantage is that you no longer have to look after it yourself.

• Because the team processing your invoices will be specialized in this task, they will be able to do it more quickly and accurately than someone on your staff who may have other duties to attend to as well.
• Since then, we’ve expanded into serving small businesses across the country.
• It would take you a week just to set up introductory calls with outsourced vendors.
• In the digital age, there is no reason to fear invoicing services, in fact, larger companies should be embracing them.
• No EU country may prevent this by requiring extra information in the invoice.

Tracking your invoices to ensure that they get paid on time is critical. Your VA also needs to regularly report on the status of those invoices, especially if there’s something you need to follow up on. Tracking your invoices in a spreadsheet, ideally one that is easily accessible to both you and your assistant, is a great way to keep up with your invoices at a glance. You should train your VA in what you want to have done with your invoices, including when they should bring them to your attention. It goes without saying that more prompt invoicing will ensure you are paid sooner. One issue that many businesses that invoice in-house have is failing to send an invoice as soon as work is completed, which can impact cash flow significantly in the long run.

Typical benefits of outsourced vs. in-house e-invoicing solutions

The right partner has experts with deep experience handling all elements of billing, invoicing, and communications across verticals. They understand the rules, data privacy laws, security requirements, latest technology and needs specific to your industry, which mitigates your risk. And echoing the point above about reduced hiring costs, bringing in outside help also means you don’t have to spend money or time training in-house staff in these areas. Thus, by outsourcing your invoice processing services, it would free your team’s time, resources, and energy so they can focus on more core areas of your business and deliver more value to your customers. Choosing a third-party to outsource invoice processing allows businesses to experience flawless services and achieve maximum accuracy rates. In addition to that, it is an excellent way to reduce your in-house operational costs and save on finances that go into training and infrastructure building.

Keep the essentials in-house so you can keep an eye out for the best practices happening in place. Once you outsource invoicing services, all incoming and outgoing paperwork and files will follow a standard template. Using video, however, can make it easier to show your exact expectations.

Maintaining quality

It’s not as if the vendor is a mix of roles from CFO and Controller, to AP Manager and AP Processor, which can happen at smaller firms—one person wearing many hats. Depending on where the vendor is located or if they have a distributed staff, you may find one with near-constant uptime when they are utilizing technology like AP Automation. Analyze your financial health, interpret your financial statements, and forecast cash flow with our financial analysis services. We help people in a difficult financial situation take steps toward a better one, but first and foremost, we help hard-working companies get paid. Every day at Axactor we are in contact with many companies and private customers with different issues and needs. For instance, if you operate in the retail sector, you might want to leverage retail analytics to optimize your inventory, pricing, and promotions.

Shorter payment cycle times mean that you can get paid sooner – which as we’ve already mentioned, keeps everyone happy. In addition, this team will be dedicated solely to the task of invoicing, meaning that they will not be distracted by other duties. Since 1993, Jones Square has been providing bookkeeping and accounting services in the Dallas/Fort Worth, Texas area. Since then, we’ve expanded into serving small businesses across the country.

You can use software tools, apps, or plugins that can connect your invoicing provider with your accounting, CRM, or payment systems, and streamline your workflow. You can also use features such as recurring invoices, reminders, or online payments, that can make your invoicing faster, easier, and more convenient. You should also keep track of your invoices and payments, and reconcile them with your records.

Jones Square’s outsource invoicing services help you receive payment from customers without the hassle of managing invoices in-house. We know first-hand the importance of comprehensive bookkeeping and efficient invoicing to keep businesses thriving. That’s why our US-based experts are here to handle those needs for you. If this process is not done right, the consequences are – you won’t get paid or you will be paid late for your products or services. We all know that late payments and unpaid invoices will greatly impact your cash flow. This only means that your staff has to manage different sets of invoices for each location.

Issues in invoice processing service may cause late payments, which can hurt the company’s reputation and can also be financially costly in the form of penalties. Specific to invoice processing, companies use outsourcing to allow their team to focus on the core aspects of the business and move the important but less critical invoice processing tasks outside the company. We are strengthened with automatic invoice management technology which ensures error-free results in your invoice processing data.

Save money

By outsourcing your invoicing and collections to a third party, you can keep the private information of your customers safe. When shopping around for an outsourcing partner, pay careful attention to the security measures they put in place. According to Salary.com, an accounts receivable manager makes more than $97,000 per year on average. The average recruitment agency charges between 15%-25% of the recruited employee’s salary. By outsourcing invoicing, companies can effectively manage their financial transactions without getting overwhelmed, guaranteeing that they can maximize profits and continue to scale operations.

Since their business model is built on low processing costs for invoices, they may kick exceptions processing back over to you or your team. While mistakes are inevitable with any manual process, duplicate payments cost businesses money; a lot of money in fact. Accounts payable outsourcing is the business practice of using a third-party vendor to administer invoice or bill related processes. The list of services varies but the vendor will generally perform functions such as invoice capture, purchase order (PO) matching, and processing, payments, archiving records, and reporting. For example, if you want to outsource accounts receivable management to an accounting firm, you often have to pay more. Without debtor management, you have no overview of outstanding invoices and cannot take action to get them paid.

Employees steer your company toward a unified goal, making sure things get done. Freeing your employees from processing invoices means that they can be assigned to other areas where they are the most needed. It eliminates tying up your employees with unnecessary meetings and training. They can spend more time collecting from delinquent accounts Outsource invoicing and focusing on relationships with your vendors. If your company is seasonal, then you won’t need to hire extra employees just to deal with invoicing, you can focus on hiring for manufacturing or the service your company provides. This is because professional companies are known for their high levels of efficiency and professionalism.