Is outsourcing invoice processing services beneficial for you? Will it mean extra dollars in the bank? Before going any further, it will be prudent to know what invoice processing is all about and if not outsourced, why it can be a millstone around the neck of your business operations. When an invoice is drawn on you, it is basically a commitment on your part to pay for goods and services accepted by you. Thus, it is an amount payable and in bookkeeping, parlance termed as accounts payable.
The catch here is that you do not pay the moment goods are delivered to your warehouse. You pay after say thirty, sixty or ninety days after receipt of the goods. This fluid and ongoing system of having hundreds of invoices all with different due dates is what makes keeping track of the whole thing so difficult. But all invoices must be paid within due date if market goodwill and credibility has to be sustained. Further, it not easy to estimate the total amounts due from you on a particular cut-off date. This acts as a drag on your future planning and devising strategies for growth and development of your business as the reserves with you after clearing your payable is not precisely known to you.
All these problems and more can be easily circumvented if can be exactly calculated at any given point of time what you have to pay, what you will be receiving and the surplus in your hands for business diversification. This is possible if you choose to avail the expertise of invoice processing services. The benefits that will accrue to you will primarily be cost-effectiveness that is, leftover funds to focus on your core activities.
That brings this discussion back to where it started – how can outsourcing invoice processing help you financially –
Savings in infrastructure investments –Any small or midsize company, not to speak of large ones will have hundreds of invoices to contend with. It is not a simple task. Every invoice has to be checked for authenticity, entered in the books, tracked throughout its life cycle and paid promptly on or before due date. The only way that a firm control can be kept over the process is to shun manual means and go for automated process. This requires huge investments in hardware and cutting edge software that will provide details on all invoices to be paid or the total amounts outstanding at a point. When specialized services take over this task and this investment is not required from you, it is ($) dollars in the bank. Not only that, outsourcing agencies guarantee the same level of service that you would have got by in-house processing.
Savings in man power requirements – Any computer system is a dud without trained and qualified men at the controls and that comes at a high price. Considering that you did opt for a one time investment to set up invoice processing services in your company, can you really afford to pay lucrative salaries as a recurring expenditure to man the systems? This is more so when the whole invoice processing can be done at a fraction of the cost by outsourcing agencies without any deviation from an assured high quality output. That is again savings for you.
Updated reports on accounts payable – While this factor per se does not directly add up the dollars, it has an effect by default on enhanced earnings. Look at it this way. You are confronted with a once in a lifetime business opportunity that calls for an immediate decision. Among the papers that you will bank on to know your financial state of affairs is the latest position of the dues that you have to pay up and this includes the invoices that have to be cleared. Only when this is reduced from your cash reserves or profits or your credit availability in the bank can you take the plunge. Invoice processing services will give you reports almost on a real time basis so that you can know your dues, fund your expansion plans and watch your business profits grow exponentially.
Updated reports on accounts payable – While this factor per se does not directly add up the dollars, it has an effect by default on enhanced earnings. Look at it this way. You are confronted with a once in a lifetime business opportunity that calls for an immediate decision. Among the papers that you will bank on to know your financial state of affairs is the latest position of the dues that you have to pay up and this includes the invoices that have to be cleared. Only when this is reduced from your cash reserves or profits or your credit availability in the bank can you take the plunge. Invoice processing services will give you reports almost on a real time basis so that you can know your dues, fund your expansion plans and watch your business profits grow exponentially.
Accurate payments to vendors – Sophisticated tools used by outsourced agencies ensure that every voucher that is sanctioned and authorized for payment by your executives are accurate in every respect and there is no error in amounts paid. This helps to eliminate revenue leakage from wrong payments of vouchers. In fact, difference of a few dollars now and then can add up to substantial sums in the long run. You can rest assured that under the control of invoice processing agencies, this is a rare possibility. While this does not contribute directly to inflating your bank balance, it definitely stops unwarranted erosion of your capital.
It is today universally acknowledged that spinning off invoice processing does not only reduce the workload and optimizes business operations; it also adds to savings and eases cash flow requirements thus contributing largely to business growth, development and profitability.
If you need a top of the line accounts outsourcing company to comprehensively take care of your invoice processing functions, get in touch with Cogneesol. We have long years of experience in this field and trained and qualified staff to deliver consistent results. For more, visit Cogneesol or call at +1 646 688 2821.
