The world of business is a dynamic one. When you think you have your strategy nailed down, the environment changes and requires a change in approach. This is why it's so important to stay on top of trends in your industry.
What is Invoice Processing?
Invoice processing refers to how invoices from suppliers are collected, approved, paid, and recorded. In short, invoice processing ensures that you're paying only for what you receive and nothing else.
Not having an efficient or automated system in place to handle incoming invoices could be costly, as any missed payments will result in late payment fees for not only the amount due but also the credit you receive for prompt payment.
What is Outsourced Invoice Processing?
Outsourced invoice processing refers to how an organisation contracts out its invoice processing work to another firm or individual specialising in this function. This helps companies free up internal resources to focus on other business areas, such as sales and marketing.
With your staff focused 100% on revenue generation, you can be confident that you're getting paid quickly and efficiently without sacrificing service levels or quality of work.
Why is Invoice Automation Important?
An automated invoice processing system like Oworkers.com ensures greater accuracy and lends itself well to speedy reconciliations with banks and financial institutions. It also provides real-time data about invoices due and outstanding, both of which are critical to a more effective workflow.
By choosing a third-party service provider, you'll have access to the best software on the market and can rest assured that your invoices will be paid faster than ever before.
Why There is a Need to Automate Your Invoice Processing?
There are several advantages to automating your invoice processing function:
To Avoid Late Fees
Invoices sent from suppliers typically have terms and conditions listed on them, so it's important not to miss the payment due date as this may result in late fees being applied by the supplier.
In addition, you run the risk of an early termination fee if not paid within 30 days of shipping goods or services - meaning that paying even one day late could cost you significant profit down the road.
To Eliminate and Reduce Human Error
Human errors, such as typos in relevant information, can also result in a late payment being made, which could have dire consequences for your business.
The only way to avoid these issues is to automate your invoice processing function to reduce or eliminate these costly mistakes, allowing you to focus on growing your business instead of worrying about making errors that could put it at risk.
Benefit from Advanced Software
In addition to automating repetitive tasks, IT compatibility with accounting software systems, reconciliation with banks and financial institutions, and enhanced reporting capabilities - companies will also benefit from advanced features such as:
Professional Email: powered by off-the-shelf software that ensures all information from the customer is captured accurately from the email, then transferred seamlessly into accounting systems.
Business Intelligence: access to a range of powerful reporting tools and analysis based on the invoices you need to see, not hundreds or thousands of reports.
Reasons Business Outsource Invoice Processing
There are several reasons businesses choose to outsource their invoice processing needs:
Increase Business Efficiencies
Companies could only automate specific business areas, such as sales or purchasing, until recently. By using an outsourced invoice processing firm, however, they're able to streamline all related tasks in one fell swoop, from intake of invoices and purchase orders through bookkeeping and reconciliations with your banks and financial institutions.
A cost-effective solution that results in doubling your business's efficiency is definitely worth looking into!
Track Invoices on a Real-Time Basis
Since most invoices are processed using manual data entry, it can take up to five days for an invoice to be recorded, approved, and paid. By outsourcing this function, companies can track their payments on a real-time basis - giving them greater visibility of outstanding invoices, maximising receivables, and minimising overdue periods at the same time.
Benefit from Advanced Software
Most third-party service providers specialise in invoice processing software that enables advanced features such as automation of repetitive tasks, IT compatibility with accounting software systems, reconciliation with banks and financial institutions, and enhanced reporting capabilities.
Advantage of Centralised Processing
Centralization by a third-party service provider makes sense for businesses that receive hundreds or even thousands of invoices every month. It allows their employees to focus on other business areas rather than administrative work.
This also creates greater flexibility since you're not confined to one geographical location, as invoice processing firms are often located in remote areas with low labour costs - meaning lower expenses for your business!
Get Your Invoice Processing Right
Having an outsourced solution allows companies to get their invoice processing right from day one without making costly mistakes due to a lack of experience in this area.
By choosing a third-party service provider, you can rest assured that your business's invoice processing needs will be addressed by industry experts who have a proven track record in this space.
When Should You Outsource Invoice Processing?
Outsourcing invoice processing can make sense for businesses in several scenarios:
Increased Costs: The simple fact is that there are costs associated with manual data entry - even if it's just paying someone to enter your invoice receipts into your bookkeeping software!
With automated solutions, you have access to advanced features that allow you to streamline processes from start to finish, eliminating the need for manual data entry and reducing costs as a result.
Poor Compliance: Neglecting to address compliance issues within your business can be detrimental - especially if you're not familiar with the latest rules and regulations that may apply to your invoices, such as Know Your Customer (KYC), Anti-Money Laundering (AML), and the United States Patriot Act (to name just a few).
Outsourcing solutions also benefit from capturing information in multiple languages for businesses operating globally, so there's no need to worry about having a different solution based on each country you work in - saving you both time and money!
Conclusion
For invoice processing to fulfil its role as a critical link in your business's foreign exchange management process, it must be automated and outsourced to ensure that you get the correct information at the right time.
By choosing an experienced service provider, you can rest assured that your invoice processing requirements will be addressed by experts who have a proven track record in this space - allowing you to concentrate on growing your business instead of worrying about compliance issues or making errors that could put it at risk.
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