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

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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
                         business
 be expensive for your business. But can
 you save money with an accounts
 payable outsourcing partner?
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A survey conducted by the International
 Accounts Payable Professionals (IAPP)
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 found that it costs – on average - $8 to
 process an invoice manually; other firms
       t        i      t         hi h
 report processing costs are as high 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 process each
                           p
 individual invoice, but ‘cost per invoice’
 is an important metric to understand
                  ff
 – and it isn’t difficult to calculate
If you have a dedicated Accounts Payable
 department,
 department simply divide the cost of
 running the department by the number
 of invoices processed. For example, if it
             p                   p ,
 costs $10,000 to run your AP department
 each week and they process 1,000
 invoices - each invoice costs your
 organization $10.
                         t    l l t
(There are many ways to calculate your
(Th
 company’s cost per invoice. This
 survey does a great job of covering some
 of the most popular.)
What is the Accounts Payable
 Outsourcing Savings?
 The hunt for lower AP costs has led
 many businesses to Accounts Payable
      y                            y
 outsourcing. It's a great way to improve
 performance, streamline operations and
 reduce costs.
How much cost savings can companies
    li ? Switching t an automated,
 realize? S it hi    to     t     t d
 electronic invoice outsourced provider
 can generally reduce the cost per
 invoice to well under $3.
What Does it Take to Outsource AP?
 To achieve the greatest value from
 outsourcing AP, the entire process should
 be fast and require minimal
               q
 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 an accountant's review.
   q

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.
Accounts payable outsourcing offers
 many benefits to businesses including:

                                p
 Reduction in labor costs - companies
 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 cloud-
 based, installed locally at your
 location, or a combination of the two
Improved accuracy - businesses
 have reported paying up to $50-55
 to handle each invoice error.

A strong outsourcing partner uses
 sophisticated error identification and
 correction systems to reduce errors
 and costs.
Complete audit trails and instant
 record and reporting systems



Routing of invoice deviations via
 smartphones or web browsers
An automated, accounts payable
 outsourced solution can be a
 tremendous boost to productivity,
 accuracy and your company’s bottom
           y     y        p y
 line.
                           p
It’s critical to choose a partner with
 the expertise to craft the solution
 that works best for your business.
 And      d    t di
 A d understanding your t            t
                             true cost
 per invoice is an important step
                            company s
 towards improving your company’s
 efficiency.
Do you know how much AP
 processing costs your business each
 month?

Read more about Outsource Accounts
   y
 Payable here:
www.berkone.com

				
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posted:11/20/2012
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Description: Processing accounts payable invoices can be expensive for your business. But can you save money with an accounts payable outsourcing partner?