As budgets continue to become leaner, many companies are leveraging outsourcing as a way to ensure that the quality of their accounts payable remain, while reducing overhead costs.
For obvious reasons, outsourcing your accounts payable process allows you to benefit from the skills of experts without being bogged down by the time constraints and costs associated with this back office function. The benefits go beyond, though.
Below are the top 8 reasons you should outsource your account payables process.
- Saves Time and Increases Efficiency: Your time should be spent managing and growing your business, not overseeing bills. This is where your time is most valuable as the expert in your industry. Spending too much time pouring over payables is not the best use of your time.
- Reduced Costs: In general, there are reduced operational costs associated with outsourcing to a team of professionals (with DDC, that generally tends to be a 40-60% savings). Think of all the time and money you will save on training employees, providing them with the right technology and office space -- not to mention the tax savings benefits. Instead, you can redistribute those dollars for other core business needs.
- Expertise and Reliability: Outsourcing allows you access to a team of experts you can trust. These experts come with the experience to recognize and improve processes and the familiarity with compliance and regulations for the industry. Add standardized procedures and you speed up the whole process while reducing human error and ensuring accuracy.
- Technology Cost Savings: Forget having to buy the latest and greatest hardware and software. By outsourcing, you gain access to the top accounts payable software along with a staff that is experienced in using it.
- Reduced Risk: As unfortunate as it may be, it is not all too uncommon to hear of employees stealing money from their employer. Keeping this function internal can be difficult to implement -- with the right checks and balances that will enforce a clean money trail. Outsourcing your accounts payable adds a third party to the mix, which creates impartiality and will also help increase compliance.
- Scalability: Like any business, there will be ebbs and flows in sales. Some are a result of the season, while others are based on different business cycles. When business is really good, you don’t want to further stress your employees by adding to their workload and focusing their attention on an essential, but unprofitable, back office function. Outsourcing gives you the flexibility to scale up your needs when you experience an influx of activity.
- Access to Financial Data When You Need It: As a result of today’s cloud-based accounting applications, you gain access to the most up-to-date information at any time in any place. Having this visibility into records and reports allows you to make real-time educated decisions about the health and direction of your business.
- Confidence That Lets You Sleep At Night: Knowing that your accounting records are accurate and timely gives you the peace of mind to know that you are making well-informed decisions about your business. You know the information is correct and you can trust that your outsourced team of experts are keeping you up-to-date and in compliance with the latest rules and regulations. All this gives you the confidence you need to sleep at night.
No matter how you slice it, outsourcing your accounts payable function just makes sense. We at DDC OS USA have been helping businesses like yours with their back office needs. In fact, we have 30 years of experience doing so. If you are feeling overwhelmed in trying to keep up with your accounting under tight resources, consider freeing up your staff and let us handle the accounts payable (AP) process securely for you with our dedicated team of APSC-certified accountants.
Let’s discuss your accounts payable needs!