Top Ten Myths of AP Outsourcing

7/28/2019 Top Ten Myths of AP Outsourcing

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The ToP 10 myThs of AP ouTsourcin

Mh #2: Is no Sc.

Reality: Outsourcing can and should improve the security o your invoice-related

data. Because any data breach can put an outsourcer out o business, providers

make it a top priority to be secure, including physical data center saeguards,

application-level security, and data transer inrastructure with controls that equal

or exceed the protection o behind-the-rewall deenses. Additionally, your AP

outsourcer can ease your security compliance burden by providing SSAE 16 and

other data security documentation or regulators and auditors.

Mh #3: Is all-o-no Poposiio.

Reality: While you can certainly choose to outsource your entire AP, it oten makes

the best business sense to outsource certain segments. AP Segmentation is an

approach that involves separating and prioritizing invoices based on their type,

characteristics and level o importance. AP Segmentation is also the process by

which companies consistently identiy Critical AP the 20% o invoices that accountor 80% o problems or lost opportunities i they are not handled in a timely and

proper ashion. Outsourcing can eectively target Critical AP, and segmentation

thereore enables outsourcing AP to become a truly strategic decision.

Mh #4: I Is rll Mo efci.

Reality: Independent research conrms that AP outsourcing is the most eective

way o handling invoices. The Aberdeen Group ound that best-in-class companies

leverage outsourcing to process invoices as much as 59% aster than other

companies. They also ound that laggards spend over ten times more to process a

single invoice than top companies that use outsourcing in accounts payable do.

Mh #5. aP is co compc o m bsiss.

Reality: Just because AP processing alls under the category o nance doesnt

mean its core to your business. According to the original denition oered by the

Harvard Business Review, a core competency provides customer benets, is hard or

competitors to imitate, and can be leveraged widely to many products and markets.

That denition should apply to the products you sell and the services you provide,

not the way you pay your bills. In contrast, AP processing is a core competency or

AP outsourcers, and providers can thereore increase your competitive advantage by

delivering youtheir customerbenets in your payables process.

Mh #6: Osocs do us m Bsiss.

Reality: Your business is unique, but how you pay invoices shouldnt be. I your

AP process is truly unique, thats a negative: it adversely impacts control and

transparency, which are essential parts o both ecient operation and regulatory

compliance. Expertise gained through specialization enables providers to handle AP

or organizations and businesses in any private or public sector enterprise.

The Aberdeen Group

ound that best-in-class

companies leverage

outsourcing to process

invoices as much

as 59% aster thanother companies.


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The Aberdeen Group also notes that specialized AP technology, such as oered by

AP outsourcers, provides automated workfows and reporting that delivers critical

visibility into the AP process throughout its liecycle.

Mh #7: Osocig is Ol usl o rc Hco.

Reality: I reducing sta is indeed a goal, AP outsourcing has been proven to

accomplish that objective without a loss in productivity or capacity. However, a long-

term vision o the role o outsourcing is becoming increasingly important. Research

by Robert Hal International and others reveals that accounting proessionals are

in high demand worldwide, and the pool o qualied accountants in the U.S. has

not grown suciently to meet the increase in demand. With boomers retiring

and a shortage o new talent in the pipeline, retaining your existing sta while

increasing their capacity and productivity should be a key objective o AP outsourcing.

Additionally, the eciency gained through aster and less expensive AP processing

can increase your companys overall competitiveness, which benets all sta.

Mh #8: M erP Ssm C do this al.

Reality: AP is not a native unctionality o ERP systems, and adding other sotware

or modules to do so increases your total cost o ownership (TCO). Additionally, the

weaknesses o ERP systems enabled or AP processing are revealed when trying

to import invoice data into those systems. Since an ERP system can only process

data it has access to, data rom invoices in a multitude o possible ormats has to be

captured. AP outsourcers have proven most ecient at handling that data capture

and managing the entire AP process.

Mh #9: W too Smll.

Reality: You dont need to be a company with a million transactions a year to benet

rom AP outsourcing. In act, outsourcing works well or small companies because

the economies o scale outsourcers can provide delivers eatures and benets to

those companies at a much lower cost than i they tried to handle it in-house.

Additionally, accounting sta and nancial managers at smaller companies oten

have varied responsibilities, and outsourcing the tactical unction o AP enables

them to ocus their eorts on more strategic tasks.

Mh #10: W too Big.

Fact: The inrastructure o the AP outsourcing market has increased tremendously,

bringing more capacity to handle organizations o all sizes. Additionally, large

companies can use AP outsourcing to eectively segment invoice processing to

handle Critical AP, to support a specic line o business or geographic location, or to

clean up a problem area. AP outsourcing is also a valuable option in an acquisition

and can handle the AP processing o the acquired company either until operations

are consolidated or as a long-term strategy.

The eciency gained

through aster and

less expensive AP

processing can increase

your companys overall

competitiveness, whichbenets all sta.


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abo abill

Built on the premise that all payments are critical, Anybill was created in 2001 to transition any AP transaction to an automated solution.We combine our proprietary technology with unmatched customer service to deliver a complete Sotware-as-a-Service solution. Clients retainecient workfows while gaining greater visibility and control, better cash fow management, streamlined approval processes, 24/7 accessibilityand increased auditor condence. Anybill works with clients ranging rom non-prot associations to some o the largest multinationals. We areheadquartered in Washington, DC, and are SSAE 16 SOC compliant.

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Bcomig Bs-i-Clss

Encouragingly, the reluctance to outsource AP may be ading, with the Aberdeen

Group reporting that nearly 40% o enterprises plan to outsource the AP unction.

Once youve chosen to outsource part or all o your AP, you are aced with a critical

decision: selecting the outsourcer. Remember: outsourcing.

AP moves only the processing o payables to a provider, and not the decision-making.

Thereore, you need to select an AP outsourcer whose goals align with your own

and that oers eective ways or you to perorm the necessary management, review,

and control o the AP process. The outsourcer should oer eective automation

solutions and powerul technology that provides visibility into the process. And the

provider should demonstrate a proven track record o delivering value to companies

like yours.

Now is the time to embrace AP outsourcing and position your company as a best-

in-class perormer. Understand the myths o AP outsourcing, but know the acts:enterprises that partner with an eective, experienced outsourcing partner improve

their AP processing, standardize policies around AP, and achieve signicant gains in

eciency and cost reduction.

Select an AP outsourcer

whose goals align with

your own and that oers

eective ways or you to

perorm the necessary

management, review, and

control o the AP process.

Documents

Top Ten Myths of AP Outsourcing