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Saving Money With Accounts Payable Outsourcing: How Much Should Paying Your Bills Really Cost Your Business?

Processing accounts payable invoices can be expensive for your business. business But can you save money with an accounts payable p y outsourcing gp partner? A survey conducted by the International Accounts Payable y Professionals (IAPP) ( ) found that it costs – on average - $8 to process an invoice manually; other firms reportt processing i costs t are as high hi h as $10-$20 for a single paper, fax or email invoice!

Do You Know How Much it Costs to Process Your Invoices? Many organizations often don’t know how much it costs them to p process each individual invoice, but ‘cost per invoice’ is an important metric to understand – and it isn’t difficult ff to calculate

If you have a dedicated Accounts Payable department simply divide the cost of department, running the department by the number of invoices p processed. For example, p , if it costs $10,000 to run your AP department each week and they process 1,000 invoices - each invoice costs your organization $10. (Th (There are many ways to t calculate l l t your company’s cost per invoice. This survey does a great job of covering some of the most popular.)

ď śWhat is the Accounts Payable Outsourcing Savings? The hunt for lower AP costs has led many y businesses to Accounts Payable y outsourcing. It's a great way to improve performance, streamline operations and reduce costs. ď śHow much cost savings can companies realize? li ? S Switching it hi tto an automated, t t d electronic invoice outsourced provider can generally reduce the cost per invoice to well under $3.

ď śWhat Does it Take to Outsource AP? To achieve the greatest value from outsourcing AP, the entire process should be fast and require q minimal implementation to keep internal costs, set-up and training at a minimum.

Even with outsourcing, it’s important that the organization keep an accounting team for invoice decisions that can require q an accountant's review. The vast majority of invoices, however, can be easily automated – meaning your staff won’t need to review items that don't need human expertise.

ď śAccounts payable outsourcing offers many benefits to businesses including: Reduction in labor costs - companies p report up to an 80% reduction in labor and its associated costs

Lower per invoice costs - well under $3 per invoice Fast, seamless implementation into your existing enterprise systems Custom configuration for your business - systems can be cloudbased, installed locally at your location, or a combination of the two

ď śImproved accuracy - businesses have reported paying up to $50-55 to handle each invoice error. ď śA strong outsourcing partner uses sophisticated error identification and correction systems to reduce errors and costs.

ď śComplete audit trails and instant record and reporting systems

ď śRouting of invoice deviations via smartphones or web browsers

An automated, accounts payable outsourced solution can be a tremendous boost to productivity, accuracy y and your y company’s p y bottom line. partner with It’s critical to choose a p the expertise to craft the solution that works best for your business. A d understanding And d t di your ttrue costt per invoice is an important step towards improving your company company’s s efficiency.

Do you know how much AP processing costs your business each month? Read more about Outsource Accounts Payable y here: 

Saving Money With Accounts Payable Outsourcing How Much Should Paying Your Bills  

Processing accounts payable invoices can be expensive for your business. But can you save money with an accounts payable outsourcing partner...

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