Invoicing can take up time and energy that should be used to grow the business. Here are a few reasons why you should outsource your accounts payable tasks.
Running a business means you have to find the right balance of time and money you’re putting into each department. How much of your time is being taken up by administrative tasks? Completing paperwork, filing, data entry, and other duties can slow operations and productivity and take away from more important aspects of the business.
One area that can be inefficient, especially for small businesses, is accounts payable. Invoicing, statement management, and other accounting responsibilities can quickly turn into a time-consuming business function.
Is it time to outsource your accounts payable tasks? Here are the key points we’ll be walking through:
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What is outsourcing?
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Benefits of outsourcing your invoicing
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Accounts payable responsibilities to outsource
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Working with Franco Blueprint
What is outsourcing?
While outsourcing has become a common term in many industries, there’s still confusion about what it entails. Outsourcing is when you hire another company or contractor to take on a responsibility that would normally be done internally. However, integrating new technologies like automation is not considered outsourcing, even though tasks may be streamlined and new processes used to complete them, freeing up employee time.
The key difference is that outsourcing requires an agreement of some kind with a third party. Instead of bringing in new staff, new programs or software, or new technologies to do the work, outsourcing means the jobs are conducted elsewhere.
Many businesses take advantage of outsourcing for invoicing and other accounts payable duties, in addition to data entry, customer service, marketing, administrative, and other services.
Benefits of outsourcing your invoicing and related tasks
If you’re looking for ways to cut costs or just streamline your invoicing process, outsourcing may be the right way to go. Let’s dive deeper into these five key benefits:
1. Save money
First and perhaps most importantly, outsourcing invoicing and statement management can cut costs. You can either avoid hiring accounting staff members or cut back the team to save on salaries and benefits, both significant business expenses.
2. Free up employee time
Invoicing is a commonly outsourced function because there are so many small tasks within accounts payable that take up a lot of time. Your team won’t have to track down late payments, answer questions about invoices, or spend time on banking coordination.
3. Depend on the experts.
Another plus of outsourcing is that you know you’re working with a company or individual who is an expert in these matters. They can essentially take over everything immediately without much learning curve. This improves efficiency and gives you peace of mind that your information is in the right hands.
4. Better compliance.
When you use a third party for invoicing, you’re allowing someone else to focus on the steps you need to take to ensure your business is compliant. Payment processing can be complex, and experienced companies can ensure that every single correct action is taken.
5. Stay up to date.
When you work with accounting professionals, you’ll never have to worry about using outdated software or systems. Outsourcing means you’re working with service providers who know the latest in the industry and how to make your processes most efficient.
Accounts payable tasks to outsource
Now that you know the benefits, what tasks should you outsource? Hiring a third party often means that the company can take on all processing for your accounts payable. These duties include:
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Bookkeeping
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Invoicing
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Loan and debt management
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Bill payment
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Tax management
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Accounting automation
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System management
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Compliance
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Business formation
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Budgeting
You can essentially outsource any accounts payable jobs and other financial functions that your current business structure is having trouble following through with.
Save your business time and energy by outsourcing these responsibilities to a third party, and you’ll have more efficient systems and a boost to the bottom line. Managing your finances is one of the most important ways to keep growing, so never overlook accounting processes you should be tackling.
Working with Franco Blueprint
When you need assistance with your accounting processes, work with Franco Blueprint. Our experienced team can help you with a range of services, whether your business is just starting out or you need to update your old accounting system. We’ll help you focus on compliance, company formation, accounting structuring, systems implementation, and much more.
Get in touch with Franco Blueprint for a free consultation to get started.