Reasons Why it is essential to Outsource Invoice Processing

by Sudarsan

Processing invoices is a crucial, yet, handful part of the responsibilities of the accounts payable department. Most of the time, invoices don’t get sent on their proper schedule due to the workload of the employees. In addition, the chances of committing errors on invoices such as missing numbers, details, codes, or addresses, are increased when it’s made in a hurry. Errors on invoices might have a significant effect on the company’s image and customer satisfaction. In this article, we’ll discuss the top reasons why you should consider outsourcing invoice processing.

According to research by YouGov, 70% of B2B decision-makers claim that they’ve handed off-key services to third parties and only a quarter, which is 25%, claim they’ve never done so in any area of their organisation.

What does it mean to outsource invoice processing?

Invoice Processing is simply the procedure of managing invoices, from their receipt to when it’s ready for payment, and recorded in the company’s general ledger. This process falls under the function of the accounts payable (AP) department.

Outsourcing means that a company will seek help from outside sources not related to their company to be responsible for performing certain jobs or services. That being said, outsourcing invoice processing means that a company will hire a new person or a team to take up the processing of invoices.

How does invoice processing work?

To illustrate the procedure of the invoice processing method, let us tackle each part of the workflow.

  1. Receiving the Invoices – In this part, they will receive a receipt authenticating that a product or service has been acquired. The receipt will match the amount invoiced to the original purchase order.
  2. Invoice Approval – The accounting department will scan the details on the receipt to make sure that there are no errors. Once the receipt passes this stage, it will then seek approval according to the company’s policies.
  3. Payment – When the receipt gets approved, it will proceed to be paid by the negotiated terms between the company and the client. Once these stages have been completed, the invoice can be processed.

Reasons why you should outsource invoice processing

1. Less work

One of the best advantages of outsourcing is less labour. When you outsource your invoices, your employees get to reduce a heavy burden on their backs. It allows them to focus on more important jobs and even gives them a little time to take a break, which is also very important. You don’t want your employees getting burnt out of the heavy workload.

According to a survey by Deloitte, 91 percent of respondents say having unmanageable stress on their workload negatively impacts their output. 83 percent of respondents claim that burnout from work tasks also leads to negative personal relationships.

2. Invoices are made beyond due dates

Outsourcing means that the hired team will focus only on the task given to them. If invoice processing is outsourced, that allows the accurate payment of invoices since the employees are focused on that alone. Payment errors reflect on the company’s image, however, by outsourcing, you’re able to reduce the chances of this occurring and assure your payments are sent on time.
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3. Improved quality of invoices

How invoices are made can have a great impact on the reputation of the company and your clients’ satisfaction metrics. Mistakes usually happen when employees are too stressed out that they don’t take enough time to check receipts for errors and just set them out for payment. Outsourcing reduces the probability of this happening and in return, allows you to have a better relationship with your clients through your quality invoices, which will lessen complaints and bad feedback.

An outsourcing team is usually an expert in the field. They are trained which provides them with the proper knowledge in doing the task. Therefore, given their background, rest assured that they will produce accurate invoices and ensure that they are of high quality also check out these free Invoice templates.

4. Reduced costs

The amount of invoices you receive in a day equates to the number of papers that you utilise. Outsourcing your invoices means that you won’t be needing materials such as stamps, paper, and other stationeries. This also means that you don’t have to set a space for these materials and utilise it for more useful purposes. This will save you a lot of money and be able to allocate more important aspects that will help your company grow.

5. Use of advanced software

This is one of the problems that employees encounter— unorganised invoice receipts. This is made easy by the use of advanced software. Automated invoice processing is the digitalized form of creating invoices. It speeds up the invoice procedure by converting invoices into files that can be easily edited in the software and lets you centralise your data and processes.
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Centralising data allows you to keep track of your expenses and integrate your receipts better since the invoices are recorded under one system. The use of advanced software also minimizes the risk of creating errors.

Switching to digitalized processes also means that you’re going paperless. Not only you’ll be able to reduce costs, but you’re also contributing to the environment by not using paper, thus saving trees from being cut down.

6. More efficient

Outsourcing allows increased productivity among employees and speeds up cycle times. This is because employees can utilise their time in working on more important tasks. Hiring professionals on the field means that they’re able to create outputs in a short period. This will allow you to get paid faster since shorter cycle times allow clients to receive their invoices as early as possible, in return, letting you receive your payment faster.


We hope this article was able to inform you of the reasons why you should consider outsourcing your invoice processes. The bottom line of this is outsourcing allows your employees to work more efficiently while providing fast and accurate invoices that allow your clients to build value with your company. Not only that, but it also reduces operational costs and lets you help conserve our environment. Given its benefits, it’s indeed highly recommended to outsource your invoice processes.

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