8 OFTEN-OVERLOOKED WAYS INVOICE AUTOMATION MAKES FOR A MORE EFFICIENT AP FUNCTIONS
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Agenda 8 Overlooked Ways Invoice Automation Makes For A More Efficient AP Function Basware Overview Q & A 3 Solution Presentation
8 Often-Overlooked Ways Invoice Automation Makes for a More Efficient AP Function Mary Schaeffer Publisher & Editorial Director AP Now 101 Best Practices for Accounts Payable + 17 other business books
Agenda Introduction The Big 8 Closing Thoughts 5
INTRODUCTION 6
Current Environment AP World is changing Technology and automation huge impact Changing mindset Catastrophe or an Opportunity?? 7
The Unrelenting Reality Fraud isn t going away Regulatory issues continue to grow Both greater enforcement of existing regs New regs Management certainly doesn t want to hire more people for AP Bottom line focus continues Catastrophe or an Opportunity?? 8
An Almost Forgone Conclusion Invoice automation Not a question of if, but rather when 9
Your Best Approach Drive the bus Get run over by the bus Take charge Let s look at some advantages you may not have thought of 10
THE BIG 8 11
1. Eliminate Unintentional Problems Created by Your Staff The workaround The shortcut Keying errors Transpositions eliminated Mistakes calculating discounts 12
More Unintentional Employee Errors Losing problematic/discrepant invoices Scheduling favorite vendors for early payments Giving favorite vendors preferential treatment 13
2. Identify Internal Control Breakdowns Invoices always sent to the right place Ends the problem of invoices sitting on someone s desk for weeks waiting for approvals No problematic invoices in the drawer Forces speedy resolution of discrepant invoices and makes tracking easier Avoid losing early pay discounts 14
3. Hinder the Crook Makes certain types of fraud (honest mistakes??) more difficult to perpetrate Submitting phony invoices by outside vendors More difficult for employees to submit a fraudulent invoice Change my bank accounts / mailing address for checks Submitting invoices with inflated charges 15
4. Decimate Duplicate Payments Integrates duplicate payment checking before the payment is made The invoice number control really can work Finally! No paying wrong vendor No calculation errors Reduce audit fees Note: This is the beginning of contract compliance 16
5. Highlight Segregation of Duties (SOD) Issues makes it easier to identify them create routines to double check fewer invoice processors heading towards smaller AP depts. issue more and more have to address so maybe even though we ll have smaller AP departments, we won t have more SOD issues 17
6. Address Mounting Regulatory Issues More Easily Most organizations reluctant to allocate additional staff especially to what is viewed as a non-value add function AP needs more time to address them Best bet: break even like most other AP functions Help raise the level of the department 18
7. Great Alternative to Outsourcing Nasty truth: More than a few companies have outsourced their AP function and more are considering they don t want big transactional staffs Invoice automation makes outsourcing look less attractive Sometimes can cost justify NOT outsourcing No loss of institutional knowledge 19
8. Enhance AP Function/Staff Image No more black hole Less viewing as paper pushers Fewer stupid mistakes tarnishing image but get ready for greater visibility The ability to perform more analytical work, highlighting staff s skill set 20
CONCLUDING THOUGHTS 21
Invoice Automation About a lot more than cost reduction Other benefits as discussed Included in any discussion 22
Proposing an Invoice Automation Project? Include the obvious cost savings Include the financial calculations (ROI etc.) to prove the validity of the proposal Don t forget, the other benefits (often can t be quantified) Tangible Intangible Because sometimes, ROI just doesn t do it Other projects have a better ROI 23
Considering an Invoice Automation Project? Clearly, the financials are important But they are just the beginning of the ball game. Don t overlook the importance of the other issues They are more vital than they might seem 24
Not Considering an Invoice Automation Project? Maybe you should It s not just for the big guys anymore After all, it s about a lot more than just saving money! 25
Thank you/questions Share your thoughts and insights with Mary Schaeffer by writing her at marys@ap-now.com Sign up for her free weekly ezine at www.ap-now.com/ezinesignup.html Join us in Philadelphia on April 7 th for Accounts Payable Seminar: Creating a More Efficient, Fraud-Resistant and Regulatory-Compliant Function http://www.apnow.com/advancedaccountspayableseminar.html 26
Publications for all Professionals: 27 The DIY AP Consultant Handbook 101 Best Practices for Accounts Payable Preparing for Year-End in Accounts Payable: A 60-Minute Guidebook Fundamentals of Accounts Payable A Short Guide to Creating A User-Friendly Accounts Payable Policy and Procedures Manual (20 page e-book) (details at http://ap-now.com/special.html ) For everyone, our free weekly e-ap News.
About Mary Schaeffer Mary Schaeffer is a nationally recognized accounts payable expert. Following a career in finance she turned to writing and consulting. For the last 15 years she has been researching and writing newsletters for the accounts payable profession. Currently she is the Editorial Director & Publisher of Accounts Payable Now & Tomorrow, (www.ap-now.com) a fee-based newsletter published by CRYSTALLUS, Inc. She also handles most of the firms consulting and training assignments (focused primarily on AP issues) often working with other well-regarded professionals. Her free bi-weekly e-zine, (http://www.apnow.com/ezinesignup.html) is read by over 15,000 professionals each month. Ms. Schaeffer is the author of over 18 business books including 101 Best Practices for Accounts Payable and the recently published Fundamentals ofn Accounts Payable. She also is the creator of several CPE courses for CPAs and the IFO s Innovating Accounts Payable certificate program. Ms. Schaeffer has a BS in Math from York College (CUNY) and a MBA in Finance from New York University. She can be reached at marys@ap-now.com 28
Basware Overview Better Buying, Better Selling, Connected Commerce with Basware Bob Cohen Vice President Phone: 203-487-7905 Email: robert.cohen@basware.com
Solution Presentation WHY BASWARE?
Basware in numbers Corporate performance Net sales >$150m in 2013 1,400+ employees Millions of business users in 900,000 companies in 100 countries History Founded 1985 Publicly listed 2000 Consistently Ranked #1/ #2 by analysts across P2P and e-invoicing Offices in Europe, the US, and Asia-Pacific Basware Commerce Network 1.9m suppliers listed >60m e-invoices/pos (2013 annualized) $425b total annual spend across network (2013 annualized) 160+ partners >50 e-invoice formats
Our Solutions
Basware Commerce Network
Basware Mobile Anytime, anywhere access to key P2P tasks 24/7 access while on the move. Remove bottlenecks by enabling your key people with mobile access to the process Key features Mobile access for both invoices and purchase requisitions Native support for ios and Android platforms an HTML5 client for other devices Mobile approval, review, reject or forward with a comment Basic data, invoice image, coding and history available 34 Solution Presentation
Cross-Industry References Banking / Finance Retail Manufacturing Food / Beverage Transportation / Logistics Energy Professional Services Medical / Pharma / Biotech Public Sector Construction Services Chemicals 35 Solution Presentation
Solution Presentation Exploring the benefits.. Basware AP Automation
Summary: Value of Intelligent AP Automation PAPER PROCESSES AP AP invoice received envelope opened clips, separation manual input pre-booking coding routing review approvals AP review ERP archive paper search SCANNING PROCESSES AP invoice received envelope opened clips, separation scanning manual validation pre-booking coding routing review approvals ERP archive FULL AUTOMATION PROCESSES E-invoice received Auto- Matching Manual Matching approvals ERP archive Analytics
Accounts Payable Automation Summary of Benefits: Control the 1. Gain Visibility Process 2. 3. Cut Costs Transparency & Accountability Actionable & Accessible Streamlined & Automated Approval policies consistent and followed Full AP process visibility Reduce transactional costs Process is easily auditable Real-time view on cash flow Speed up invoice cycle times Compliance with SOX, IFRS, etc. Enterprise-wide spend visibility Reduce time spend on nonvalue adding tasks 38 Solution Presentation
Benefits of Basware AP Automation felt across the organization Basware AP Automation Realize significant cost savings immediately Handle more invoices with less resources Improve auditability and reporting Provide better service to SSC customers and suppliers Reduce workloads and remove bottlenecks Make straight-through processing reality Gain spend visibility for better cash management Optimize payment strategies CFO Improve return on invested capital Reduce reliance on external finance Reduce costs, protect margin Manage cash & working capital Accurate, credible forecasting Operational excellence SSC Manager Manage segregation of duties Deliver high level of service Support standardization and rationalization of the process Process adaptability Ensure a compliant process AP Manager Full visibility to all invoices Easily audit any BU, Supplier, individual, cost centre or account Ensure invoices are paid on-time Quickly resolve supplier inquiries Collaborate actively with line managers for a faster process
.. and beyond.. To your suppliers too! Basware AP Automation Buyers Suppliers Access to world s largest network of buyers Improved visibility to demand Shorter DSOs with reduced risks Reduced AR processing costs Easier catalog content management Improved customer service Enhanced confidence/assurance 40 Solution Presentation
Basware helping Accounts Payable Organizations transform their impact on the wider business.. From Cost center Distributed operation Back office function handling disputes Post-process reporting To Profit center Centralized SSC Business partner / collaborator Beating SLA targets Business-wide real-time analytics 41 Solution Presentation
Q&A
Basware Automation Powered by Alusta Better Buying, Better Selling, Connected Commerce with Basware Bob Cohen Vice President Phone: 203-487-7905 Email: robert.cohen@basware.com