Save Money by Going from Manual to Automated

It’s hard to believe that with the advancements in technology that many companies are still relying on manual paper functions for their accounts receivable and payables departments. Not only does the process require a lot of vested hours but the chance for errors is greater.

Instead of spending an enormous amount of money on an entire department dedicated to paying bills and collecting payments, many other businesses are taking advantage of the ability to outsource these services. Companies like the Microdynamics Group have the capabilities to process invoices, statements, and other transactional documents at a rate up to 60% faster than most offices.

Accounting automation

Going from manual to automated

In the 1970’s and 1980’s businesses had to rely on in-house accounts payable and receivables to send and pay bills. With the dawn of the computer, many of these practices now take less than half the time. And today there are companies that specialize in doing these functions for businesses. Since this is their forte, these companies have specially designed programs that can handle mass numbers for far less across the board than you are currently covering as a business owner.

By outsourcing your department, you’ll save on the cost of constantly having to upgrade your system to meet the demands of current and newly developed technologies. It’s also cost-effective in the sense that by having someone else figure out your payables and receivables you’ll have more time to focus on growth.

For a new start-up company who may not yet have all their ducks in a row, not having to take on the additional expense of an entire Human Resource department could mean the difference between survival and failure in the early years. Your records will be available and accurate, without the need for additional staff members.

For established older small businesses that maybe want to reduce their bottom line, using this type service will help to free up capital that you can invest in advancing and growing your company. It also helps to reduce your liability and ensures that the numbers are correct, giving you an exact accounting of what’s coming in and going out. This can help you to make changes to make your business stronger without consuming valuable time.

Also, many small business owners often need to utilize staff members for more than one function. By outsourcing your accounting department, you’re gaining access to employees you already have, that already understand your goals and your business needs.

Accounting outsourcing

Additional benefits of outsourcing AP and AR

If you are on the fortunate end of a fast growing business, the paperwork that comes along with it can become overwhelming for even the most seasoned personnel. If you pay your invoice even a day late due to your employees not having enough hours in a day to keep up with the workload, you’re going to pay additional fees and maybe even lose credibility, something a businessman cannot afford.

With many businesses hanging on the edge, reducing the financial obligations, the need to find qualified individuals, processing times and removing your liability, gives you a way to work on other more pressing aspects of the business.