November, 23, 2011: Gone are those days when outsourcing was considered as a nightmare by companies. In fact now companies are looking forward to outsource their key business function in an attempt to reduce cost. Increased efficiency is other driving force behind outsourcing. Among the key business functions outsourced, accounts payable has also gained attention.
This has opened up a myriad of opportunities for outsourcing service providers as well as finance professionals. This will provide opportunity for outsourcing service providers in assisting both existing and new customers in one of the critical as well as difficult area; the handling of supplier invoices. Service providers can go for employing a hosted Accounts Payable service for the clients, which will increase the revenue of the service provider on a recurring basis and will offer better service to the clients.
For any outsourcing service provider, there should be scanning mechanism to scan the invoices of the client. After the scanning is done, the invoice will be put to the Accounts Payable solution which forms the important part of the service. In order to make the handling of client’s Accounts Payable processes, and to make the service more flexible, cloud based solutions can be used which helps the clients to have easy access to their invoice. Such an approach will eliminate the need for installing the client software in the computers of EIM service users, which reduces the overheads and offers quick services.
Clients may often worry that outsourcing key functions like accounts payable means a neglect of the same. But it does not mean neglecting; rather it will help the clients in paying more attention to other key issues which are more productive. Another concern with the clients is that outsourcing accounts payable will lead to loss of control as a 3rd party company will have access and can manage the invoice process. But this is not true, because there are contract agreements which specify certain terms and conditions to the service providers.
Another matter of concern with the customers is about security. Since outsourcing service providers handle large amount of data, they usually have high security in place to ensure that the data remains confidential. More over customers can decide on how much of their function should be outsourced.
Outsourcing of Accounts Payable function will offer flexibility and ease for the clients which will help them to stay ahead of competition. More over it will add value to the clients which will help them to serve their customers in a better manner.