In today’s competitive landscape, organizations across all industries and sectors are under immense pressure to do more with less. Meaning, business leaders can no longer afford to overlook opportunities to free up critical monetary and operational resources.
Business process outsourcing (BPO) is a strategic business model that – when implemented correctly – enables organizations to achieve the agility and flexibility needed to fund growth, streamline processes, reduce costs, enhance service levels, and increase production outputs – all for little to no upfront investment.
Why Accounts Payable Should Be a Primary Focus for Business Leaders
Although it often takes a backseat to other corporate interests or competing priorities, accounts payable is a core business function that plays a critical role in the success or failure of an organization’s operation.
The accuracy and timeliness of a company’s billing processes is critical to its livelihood, but with antiquated and inefficient accounts payable resources in-place, business leaders become more susceptible to inaccurate balance sheets and financial statements.
Conversely, organizations that invest in optimizing their accounts payable systems, processes and resources often yield an increase in working capital; ultimately helping to fuel growth and better support other critical business initiatives.
3 Strategic Benefits of Leveraging Accounts Payable Outsourcing
While each business must adopt its own unique and customized approach to accounts payable, outsourcing offers organizations with 3 strategic benefits that help to create a more streamlined, accurate, and expedited accounts payable process:
Paperless Processing Environment
Moving towards a paperless processing environment is no longer a luxury, it’s absolutely necessary to staying relevant in today’s marketplace. As consumers, we’ve become more impatient and demanding than ever before – and the current business climate is no different. Digital communication with vendors allows businesses to virtually eliminate manual data entry, minimize human error, increase resource capacity, and significantly reduce the time and cost associated with a paper-based accounts payable; allowing for the investment in more strategic business initiatives.
Centralized Processing & Reporting:
Too many organizations are still working within siloed business models that lead to poor resource allocation, as well as operational and financial inefficiencies. However, through a shared service environment – like DDC’s Hybrid Shared Service (HSS) model – businesses are able to centralize and standardize their accounts payable processing, reporting systems and processes. As a result, organizations are able to ensure that all team members adhere to business best practices while helping to accomplish greater amounts of tasks, faster, with fewer resources, and for a smaller price tag.
Real-Time Visibility into Cash Flow
With a centralized, standardized, and digitally-based accounts payable system in-place, businesses are able to expedite invoice processing from days to hours; delivering real-time insight in the status of their liabilities and facilitating more accurate and actionable financial insight.
For more insight into business process outsourcing, and the various ways it can help modern business organizations achieve a streamlined and expedited accounts payable processing system, check out our latest eBook “How to Achieve Organizational & Financial Agility through BPO” or contact us to speak directly with a DDC Group team member.