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Moving from paper to electronic

Moving from paper to electronic. The Implementation of E-Payables by Tanya Harris, CPA, MPA. Benefits of epayables. ePayables is an electronic payment solution that replaces check (warrant) payments with a VISA credit card account. Benefits of implementing an ePayable program:

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Moving from paper to electronic

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  1. Moving from paper to electronic The Implementation of E-Payables by Tanya Harris, CPA, MPA

  2. Benefits of epayables • ePayables is an electronic payment solution that replaces check (warrant) payments with a VISA credit card account. • Benefits of implementing an ePayable program: • Works with your existing accounts payable software • Provides flexible vendor payment options • Allows you to retain your current accounts payable processing

  3. Benefits of epayables • Replaces paper warrants with electronic payments • Reduces warrant printing costs • Take advantage of early payment discounts from suppliers, if offered • Minimizes fraud risk • Maximizes revenue share

  4. Accounts Payable automation • Adds another payment type to your accounting system • Warrants: paper check issued by the Auditor’s and paid by the Treasurer • Becomes void after 6 months • Difficult to predict when a warrant will be cashed although recent data shows within 7 days • ACH (Automated Clearing House): payment goes through an automatic process which allows for better cash flow forecasting. • Reduction in time, manual entry and processing costs • Takes 48 hours to settle • Approx. Cost: .03 per item ($1 for FTP transfer and $2 for web processing) • Good for routine and high volume transactions • Wires: Sent electronically through FED • Same day transaction • Approx. Cost: $6.00 per wire • Good for large transactions • Electronic Visa – Process essentially same as ACH but this option will pay you as you pay others

  5. Process me

  6. Pay me

  7. Why Riverside County explored this option • Implemented as part of SCRAPE (Safeguard County of Riverside Against Preventable Expenses) initiative - The SCRAPE program challenged county departments to explore potential cost savings • RFP – Commerce Bank who performed our system configuration • The Auditor-Controller’s Budget was cut by $1.2 million

  8. Riverside County results

  9. 2012: $23.65mm (June-Dec) 2013: $60.05mm (Jan-Dec) 2014: $48.48mm (Jan-Sep) Total since start: $132,187,957 Monthly Net Volume Business Review

  10. 2012: $313,589 (June-Dec) 2013: $779,090 (Jan-Dec) 2014: $596,682 (Jan-Sep) Total since start: $1,689,361 Monthly Revenue Share Business Review

  11. Log Analysis Since program inception, 96% of all created logs have been reconciled without refund. Only 4% have required at least partial refund, for a variety of reasons. Business Review

  12. Vendor Enrollment Analysis Total enrollments since program inception is 1158 for potential annual volume of $174MM. Enrollment is ongoing and will continue throughout the life of your program. Business Review

  13. Top 10 Vendors by Volume Top 10 Vendors represent 32% of YTD 2014 Volume: ($15.6mm of $48.4mm) Business Review

  14. Top 10 Vendors by # of Transactions Top 10 Vendors represent 34% of Transactions for YTD 2014 activity: (8,061 of 23,381) Business Review

  15. Potential challenges • Determining how to best incorporate ePayables into your accounting system • Supplier enrollment – Commerce bank performs all our enrollments. • Supplier issues arising post implementation i.e. discounts and confusion about program • Proper data transmission • Startup labor and monitoring • Reconciliation time Despite these challenges – this program has been success for our county.

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