Author: Outsource India
In a nutshell Accounts Payable Service is a very broad term to attempt to define. The most famous character in the plot though is an invoice. Any invoice generated and delivered for a product sold or a service provided becomes a part of the buyers or the customers accounts, which is payable.
The services’ related to the management of these accounts is termed as Accounts Payable Services. Accounts payable is a from of credit that a buyer enjoys as he only has to pay once he has received the product or utilized the services provided by the seller. A seller usually has payment terms mentioned in the invoice, which could vary from zero to 30 days or more as per the negotiations between the buyer and the seller.
An Example
Let us consider a spare parts manufacturing firm Tech-Spares Ltd., supplying spares to an automobile manufacturer BestCar Ltd. Let us assume, 30 days is the terms of payment negotiated between Tech-Spares and BestCar. 30 days from the date of invoice is the period BestCar enjoys credit for the amount in that invoice for which it has already received the goods.
Let us consider another example of a Mobile Phone Service company OneConnect. OneConnect provides mobile connectivity services to its customers for which it bills it customer on a monthly basis. The invoice generated by OneConnect to its customers will have a statement date (date the statement was generated) and a due date (date the amount on the invoice is due).
The day the customer receives the invoice, it becomes his accounts payable and from that day till the due date is the number of days the customer enjoys credit for services he has already used.
Advantages of outsourcing to India
There are various advantages India provides as an outsourcing destination:
English is one of the well-spoken languages amongst the educated Indians.
The cost of hiring an Indian accounts payable representative maybe anywhere between 7 to 15 dollars a day. The same representative in a developed market might cost the organization more than 5 times the amount considering remarkably higher minimum wages and even higher administrative costs.
Setting up businesses in India have become easier post 1991 reforms, which saw India opening up its market to foreign trade and investments and since then India has become a economic powerhouse that the world keeps and eye on.
Moving accounts payable operations to India gets the off shoring company familiar with the Indian territory and business practices and may be the first step to moving other key areas of their businesses to India.
Companies can explore other business opportunities, as India grows at a break-neck speed year on year and proves to be one of the largest markets in the world with a very high appetite for consumption.
About the Author:
Outsource2india provides Outsourcing Services and Solutions, Accounts Payable Services, Financial Services, Insurance Services, Bookkeeping Services, Business and Knowledge Process Outsourcing, Data Management services, Call Center Services, Healthcare Services, Engineering Services, Software Services, Digital Image Editing Services, Research & Analysis Services, Creative Services, Web Analytics Services, etc.
Article Source: Articlesbase