There’s no doubt that outsourcing is a good way to innovate your business. The process of it may be tricky but the payoff is very much worth it.
Even outsourcing your smallest processes could save you and your team loads of time, effort, and to an extent, overhead costs.
Invoicing may take a lot of effort, especially if the receiver takes some time to reflect back on the posted payment.
Since this document is time-stamped and goes back and forth from the sender to the receiver, it’s safe to say that invoices are time-sensitive as well.
Can you outsource invoicing?
Yes, you can outsource invoicing. You can delegate tasks to an external business processes outsourcing company or to an independent third party.
Any non-core services and business processes can be outsourced to experts—given that they’re experienced, willing to learn, and eager to work with you.
However, while outsourcing is trending right now, it may not be the best option for some companies right away. This business model requires months of research and preparation.
How much does it cost to outsource accounts payable?
It’s hard to pinpoint or even estimate the cost of outsourcing since every company is different. But on the other hand, outsourcing to freelancers and independent contractors may be easier to estimate.
For instance, if you’re going to outsource to a freelancer who’s paid by the hour, wages can go as low as $5 USD. If the workload covers 40 hours a week, that’s $200 a week or $800 a month.
Keep in mind that the figures above are a very rough estimate of how much it costs to outsource accounts payable to a freelancer or an independent contractor.
Why you need to outsource your invoice services
One of the most obvious reasons why companies and businesses turn to outsourcing is to save resources.
Outsourcing is, by nature and definition, designed to save costs by cutting overhead expenses.
Since outsourcing companies provide the workforce and the physical environment amongst other things, employers can cut off these expenses—allowing them to save up resources.
That being said, employers (the clients) still need to invest money into outsourcing companies and their services.
2. Enhanced productivity
Companies that provide outsourcing services often have a high standard when it comes to producing outputs on time.
Their employees are constantly thriving and working on projects assigned to them.
When and if you ever decide to outsource your invoicing processes, you will notice a sudden spike in productivity.
Team leaders and managers from outsourcing companies ensure that their distributed workforce and team are hitting those KPIs and deadlines.
3. No room for error
Speaking of team managers, most (if not all) of them can be hands-on with their team. This means that with proper guidance and best practices, errors can be avoided.
Of course, in invoicing errors and mistakes are kept to a minimum as even the smallest typographical error can lead to a huge dispute.
Invoicing experts—be it freelancers or from outsourcing companies—are trained to produce accurate invoices and paperwork.
4. Shorter payment processes
With faster and more efficient processes comes shorter payment cycles.
Outsourcing your invoicing services mean that all incoming and outgoing paperwork and files will follow a standard template.
Some businesses use programs and apps to automate their payment processes, opening up their invoice to inevitable machine errors.
5. Streamlining your processes
There’s no doubt that outsourcing your invoice services will streamline your invoicing operation.
Streamlining your processes will allow you and your in-house team to be more efficient and productive alongside your outsourced employees.
With a streamlined invoicing system, there would be less room for errors. By definition, streamlining is the act of simplifying processes and procedures to eliminate unnecessary workload.
6. Introduces flexibility
There’s no doubt that outsourcing, even outside the invoicing and billing department, introduces flexibility to the in-house team in lieu of a lighter workload.
When partnering with service providers, you may want to outsource the non-core services and repetitive workload first. Keep the essentials in-house so you can keep an eye out for the best practices happening in place.
7. Maintaining quality
Maintaining the quality of work and outputs is one of the telltale signs of whether a team is efficient or not.
Working with outsourced invoicing experts, it’s important to maintain the quality as if the work is still done in-house. It’s even better when the output surpasses the standards that the client has set.
That being said, it doesn’t mean that in-house outputs are better than the output that outsourced employees deliver and vice versa.
What happens if you don’t outsource invoice processing?
Nothing really bad will happen if you don’t outsource invoicing services, given that your business is already well in shape.
Always remember that outsourcing is a business model that can pose a solution for certain issues. It’s not a one-stop solution for deeply-seated problems in a company.