Do your suppliers not pick up your call?
Are your suppliers providing you less margin than your competitors?
If that’s the case, maybe you need to take a moment & review your relationships with your vendors.
In our experience, the one thing that hampers your relationship with your vendors the most is a delay in payment.
You don’t believe us, right?
Just check this case study (Slide 5) of D-mart & Vishal Mega Mart, and you’ll realize how important it is to pay your vendors on time.
However, you need to have an efficient accounts payable management system in place to achieve this.
Why does your business need accounts payable outsourcing services?
Managing accounts payable in-house is itself a daunting task. And, as your company grows, it gets even more challenging to make sure the accounting department can keep up.
That’s when you have to move towards accounts payable outsourcing.
Pros & Cons of Outsourcing Accounts Payable
Outsourcing Accounts Payable has its own pros & cons. Hence, it is wise to test the waters before jumping into it. In this article, we’ve brought you the pros & cons of outsourcing your accounts payable.
So stay tuned ‘coz it’s going to be an informative one.
Pros of Outsourcing Accounts Payable
Outsourcing your AP duties to Ace Global can prove to be more cost-effective than hiring and training your own team. Imagine all those costs that are incurred during onboarding and other costs that follow, i.e. insurance, pensions, or office space and equipment.
Well, you don’t have to worry about these things anymore.
Plus, you enjoy the low processing cost compared to in-house processing.
More Control To You
Are you losing on your precious capital because of errors like duplicate payments, wrong payment processing, and missed or late payments?
Well, you’re not losing on money, but you’re also losing on trust of your clients.
By associating with Ace Global, you reduce headaches related to locating documents and data for budget planning, audits, and more.
Timely Spot & Rectify Errors
Do you keep discovering errors in accounts payable audits?
Well, errors don’t only lead to monetary losses, but depending on the rules that govern your industry, they could even lead you to some serious troubles.
Ace Global not only follows best practices in your invoice processing but also employs our expertise to identify errors before they become liabilities.
Efficiency Is A Given
Trust us with this — in-house account payable teams are often not up-to-date with the latest standards. And the only reason is that it is not your business’s core competency.
However, it is ours! Through our wealth of experience, we process invoices more quickly and accurately – and use less paper – than a small in-house staff could.
Also, you will also have access to greater bandwidth to absorb seasonal increases and year-end crunches more effectively.
Cons of Outsourcing Accounts Payable
We understand handing over your sensitive business data to a third party is always a risky task. However, if the BPO has high-security standards, such as restrictive access or authentication-based processes in place just like Ace Global, you can rest assured that your data is in the safe hands.
It’s only natural when you outsource your business process, and if the agency is efficient, you get used to them. However, the upside to this is, if you find such an outsourcing company, this could mean a long-term association that could prove to be strategically favourable to both the parties.
To sum it up, outsourcing accounts payable management to a third party can be a fruitful partnership for your business. As opposed to your staff spending hours on manual data entry, you can outsource that and condense their efforts through vendor contracts looking for early payment discounts since you’re no longer missing deadlines.