Secrets to a Successful Accounts Payable Automation

1. Secrets to a Successful Accounts Payable Automation Christopher Elmore, APM The 8 Pitfalls of Accounts Payable Automation

2. Agenda • The 8 Pitfalls of AP Automation • What is Automation • How to Stay Out of the Pit…. Everyone Loves a Good Spreadsheet • (but first)…. A Story

3. ….a little story Does this sound familiar

4. The List • Run and send GL Report • Print GL Report • Get GL Report to person for meeting • Find out if Check has been cut and sent to an old employee • Email response back to HR on status of the check • Check invoice from CEO for approval and validity • Enter invoice for CEO • Do special check run for CEO • Report back to CEO that the invoice was entered and the check was sent • Fix the printer • Find out from your boss if IT should have fixed the printer. • Talk to IT about their service to the accounting department (in a non-threatening way) • Try to get over the paranoia of confronting IT • Research the $7.52 invoice • Call the vendor back on the status of the $7.52 invoice • Explain to the vendor that you are not the right person to call the next time they have a question about payment • Enter the daily stack of invoices into the AP system • Match and file invoices that were cut yesterday

5. The 8 pitfalls

6. The 8 • Know Your Environment • Selecting a Service Provider • Getting Organized • The Project • Training and Going Live • Communicating with Vendors • The Evaluation • The Future

7. Inspiration

8. Inspiration To This?

9. What is Automation?

10. Paper Process

11. Automated Process

12. CPI – How to Stay Out of the Pit! Determine your Cost per invoice

13. Paper Process

14. Step 1 - Map

15. Step 2 - People 3 6 12 2 2 2

16. Step 3 - Time 35 45 60 75 40 22

17. Step 4 - Money $ $ $ $ $ $

18. STEP 5 Determine CPI Total Cost Total Invoices = CPI Average CPI is $22

19. Example

20. Example

21. Warning!

22. Difficulties Soft Dollar Savings Hard Dollar Savings Opening the Mail Accounting System Entry Filing • Approvals • Disputes • Coding • Reconciliation • Research • Accounting System

23. Or it will deal with you! Deal with new time!

24. Have a Plan 35 45 60 75 40 22

25. Back to our story

26. The List • Run and send GL Report • Print GL Report • Get GL Report to person for meeting • Find out if Check has been cut and sent to an old employee • Email response back to HR on status of the check • Check invoice from CEO for approval and validity • Enter invoice for CEO • Do special check run for CEO • Report back to CEO that the invoice was entered and the check was sent • Fix the printer • Find out from your boss if IT should have fixed the printer. • Talk to IT about their service to the accounting department (in a non-threatening way) • Try to get over the paranoia of confronting IT • Research the $7.52 invoice • Call the vendor back on the status of the $7.52 invoice • Explain to the vendor that you are not the right person to call the next time they have a question about payment • Enter the daily stack of invoices into the AP system • Match and file invoices that were cut yesterday

27. The List • Run and send GL Report • Print GL Report • Get GL Report to person for meeting – Create an automated report sent via email to the right person at the right time. • Find out if Check has been cut and sent to an old employee – Enable the requester to run a search and find the information without any help from AP. • Email response back to HR on status of the check - Enable the requester to run a search and find the information without any help from AP. • Check invoice from CEO for approval and validity – Workflow approval process will automate this. • Enter invoice for CEO - Check request entry by the CEO. • Do special check run for CEO – Check request entry by the CEO. • Report back to CEO that the invoice was entered and the check was sent. – CEO could look up online to check the status of the payment. • Fix the printer – Try ACH payments. • Find out from your boss if IT should have fixed the printer. – Good luck! • Talk to IT about their service to the accounting department (in a non-threatening way) – Can’t help you here! • Try to get over the paranoia of confronting IT – Sorry you’re on your own! • Research a $7.52 invoice - A vendor login will allow the vendor to find their own answer. • Call the vendor back on the status of the $7.52 invoice – A vendor login will allow the vendor to find their own answer. • Explain to the vendor that you are not the right person to call the next time they have a question. – Refer the vendor to a web log in through a recorded phone message, website posting, letter and/or statement in the remittance envelope. • Enter daily stack of invoice into the AP system – Outsourced invoice capture and electronic invoices replace the need to enter invoices into AP. • Match and file invoices that were cut yesterday – Invoices are electronically stored.

28. To get your copy of The 8 Pitfalls of Accounts Payable Automation Go to: www.costperinvoice.com celmore@avidxchange.com Learn More About CPI Analysis