Connected at last.    Unveiling the Benefits of Accounts     Payable within an Organization                     March 22, ...
Agenda    Connected at last.•      Introduction•      Major Benefits•      Other Benefits•      Conclusion•      Questions
Introduction Connected at last.• Role of AP in organization                                                               ...
Connected at last.  Major Benefits of Accounts Payable
Improved Visibility    Connected at last.•      Facilitates Centralization•      Allows for ‘real time’ status of invoice•...
Accounting Process Connected at last.• All invoices accounted for in tool• Proper accrual recorded at month-end• Invoices ...
Improved Productivity    Connected at last.•      Invoices captured immediately•      Invoices handled one-time•      Help...
Workload Balance    Connected at last.•      Bottleneck Management•      Invoice queues optimally structured•      Managem...
Efficiencies with ERP System    Connected at last.• Interface to current ERP system• Automated matching of PO based invoic...
Improved Quality Connected at last.• Avoids degradation of reputation• Enhances departmental productivity• Minimizes dupli...
Supplier Satisfaction Connected at last.• Reduction of credit holds• Avoids potential price increase• Favorable for develo...
Backlog Reporting Connected at last.• Increased accuracy of backlog reporting• Provides for ‘true’ volume of backlog• Visi...
Best-in-class Connected at last.• Starting point for best-in-class• Phases of invoice scanning and workflow• Successful co...
Globalization/Centralization Connected at last.• Allows for one central point for processing• Enhances visibility• Standar...
Polling Question #1 Connected at last.The globalization and centralization of the accounts payableprocess will provide all...
Polling Question #1 Connected at last.The globalization and centralization of the accounts payableprocess will provide all...
Lower cost per invoice Connected at last.• Compare ‘apples-to-apples’• Efficiencies gained for reduction of data entry• In...
Audit and Compliance    Connected at last.•      Real-time access to invoices•      Efficiencies from electronic storage• ...
Fraud Prevention    Connected at last.•      Due diligence – vendor setup•      Rounded amount invoices•      PO Complianc...
Customer Service    Connected at last.•      Eliminates lost invoices•      Provides visibility•      Workflow•      Allow...
Connected at last.  Other Benefits of Accounts Payable
The People Connected at last.• Analytical versus transactional thinkers• ‘Soft’ skills training• Reward and recognition
Polling Question #2 Connected at last.Hiring the people with the required level of competency willprovide all of the follo...
Polling Question #2 Connected at last.Hiring the people with the required level of competency willprovide all of the follo...
Root Cause and Corrective Action Connected at last.• Analytical thinkers• Identify “true” cause• “How can we do this proce...
Improved Working Capital Connected at last.• Three components of working capital: inventory, accounts  payable, accounts r...
Managing Discounts Connected at last.• Formula used to analyze discount strategy:                      Effective Annual Ra...
Prevents Late Payments Connected at last.• Invoice sent direct to requisitioner• Critical payments such as utilities, tax,...
Debit Balance/Escheatment Connected at last.• Debit balances result in overpayment to supplier• Timely follow-up for debit...
Polling Question #3 Connected at last.Debt balances and the escheatment process, should be managedthrough all of the follo...
Polling Question #3 Connected at last.Debt balances and the escheatment process, should be managedthrough all of the follo...
Due Diligence Connected at last.• Established controls for invoice processing• Aligned with Generally Accepted Accounting ...
Improved Teamwork Connected at last.• Strong partnership with purchasing and operations• Work together to resolve disputes...
Green Solutions    Connected at last.•      Supporting Documentation•      Out-of-cycle check requests•      Positive pay ...
Metrics    Connected at last.•      Cost Per Invoice•      % of disputes•      Cycle time to process•      % of discounts ...
Conclusion    Connected at last.•      Importance of the accounts payable function•      Analytical versus transactional t...
Connected at last.                     Questions?It’s time to Let Go and Gain Control.  Automate your Accounts Payable.   ...
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[Webinar] Unveiling the Benefits of AP with the Institute of Financial Operations

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What You'll Learn:
The benefits of incorporating automation technology into the accounts payable process include more than efficient receipt of supplier invoices, improved visibility, enhanced audit processes, and lower costs. There is another level of benefits that the accounts payable process can add to the organization.

The Institute of Financial Operations joins Anybill in discussing the major benefits of invoice automation and will focus on the best practices that can be incorporated into the people, processes, and additional technology outside of the invoice automation process, and will discuss how they add value to an organization.

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[Webinar] Unveiling the Benefits of AP with the Institute of Financial Operations

  1. 1. Connected at last. Unveiling the Benefits of Accounts Payable within an Organization March 22, 2012
  2. 2. Agenda Connected at last.• Introduction• Major Benefits• Other Benefits• Conclusion• Questions
  3. 3. Introduction Connected at last.• Role of AP in organization Better Visibility and reporting• Importance of AP 10.0% 6.0% 25.5% Lower Costs 15.9% Faster Turnaround 24.3% Fewer Errors 18.3%• Benefits of AP Automation No Benefit Gained Better Management of Working Capital• Other Benefits
  4. 4. Connected at last. Major Benefits of Accounts Payable
  5. 5. Improved Visibility Connected at last.• Facilitates Centralization• Allows for ‘real time’ status of invoice• Improves approval and dispute resolution• Increases customer service• Backlog management• Identifies control or audit issues
  6. 6. Accounting Process Connected at last.• All invoices accounted for in tool• Proper accrual recorded at month-end• Invoices available for review• Facilitates the audit process
  7. 7. Improved Productivity Connected at last.• Invoices captured immediately• Invoices handled one-time• Helps balance peak demand• Visibility to disputed invoices• Reduces time-to-enter• Allows for the development of AP Rep metrics
  8. 8. Workload Balance Connected at last.• Bottleneck Management• Invoice queues optimally structured• Management of peak volumes• Flexible among AP team• Reporting available• Published metrics
  9. 9. Efficiencies with ERP System Connected at last.• Interface to current ERP system• Automated matching of PO based invoices• Online G/L coding of invoices• Allows team to focus on root cause, corrective action, and streamlining processes• Links established to supporting documentation
  10. 10. Improved Quality Connected at last.• Avoids degradation of reputation• Enhances departmental productivity• Minimizes duplicate processing and payments• Improves Customer Satisfaction
  11. 11. Supplier Satisfaction Connected at last.• Reduction of credit holds• Avoids potential price increase• Favorable for development of long-term relationships
  12. 12. Backlog Reporting Connected at last.• Increased accuracy of backlog reporting• Provides for ‘true’ volume of backlog• Visibility to potential bottleneck• Facilitates root cause and corrective action
  13. 13. Best-in-class Connected at last.• Starting point for best-in-class• Phases of invoice scanning and workflow• Successful completion of each phase• Overall goal
  14. 14. Globalization/Centralization Connected at last.• Allows for one central point for processing• Enhances visibility• Standardization of processes
  15. 15. Polling Question #1 Connected at last.The globalization and centralization of the accounts payableprocess will provide all of the following benefits except:a) One center point of processingb) Guarantee that the cost-per-invoice will decreasec) Facilitate the standardization of polices and proceduresd) Enhanced Visibility
  16. 16. Polling Question #1 Connected at last.The globalization and centralization of the accounts payableprocess will provide all of the following benefits except:a) One center point of processingb) Guarantee that the cost-per-invoice will decreasec) Facilitate the standardization of polices and proceduresd) Enhanced Visibility
  17. 17. Lower cost per invoice Connected at last.• Compare ‘apples-to-apples’• Efficiencies gained for reduction of data entry• Integration into ERP systems• Reduction of disputes
  18. 18. Audit and Compliance Connected at last.• Real-time access to invoices• Efficiencies from electronic storage• Month-end accrual process• Supporting Documentation• Establishment of business rules• Identification of duplicate payments
  19. 19. Fraud Prevention Connected at last.• Due diligence – vendor setup• Rounded amount invoices• PO Compliance• Invoices below an approval amount• Utilization of positive pay• Check requests
  20. 20. Customer Service Connected at last.• Eliminates lost invoices• Provides visibility• Workflow• Allows for quick response from AP Team• Real-time access to invoices• Facilitates dispute resolution
  21. 21. Connected at last. Other Benefits of Accounts Payable
  22. 22. The People Connected at last.• Analytical versus transactional thinkers• ‘Soft’ skills training• Reward and recognition
  23. 23. Polling Question #2 Connected at last.Hiring the people with the required level of competency willprovide all of the following benefits except:a) Focus on analysis and exception handlingb) Increased level of customer servicec) Efficiencies gained through reduction of headcountd) Increased volume related to data entry
  24. 24. Polling Question #2 Connected at last.Hiring the people with the required level of competency willprovide all of the following benefits except:a) Focus on analysis and exception handlingb) Increased level of customer servicec) Efficiencies gained through reduction of headcountd) Increased volume related to data entry
  25. 25. Root Cause and Corrective Action Connected at last.• Analytical thinkers• Identify “true” cause• “How can we do this process more efficient?”• Streamline processed related to disputes, overpayments, duplicate payments, and payment to wrong vendor.
  26. 26. Improved Working Capital Connected at last.• Three components of working capital: inventory, accounts payable, accounts receivable• Flexing payment terms and timing of payment runs• Payment terms based on actual receipt of product• Critical expenses• Supply Chain Finance (SCF)
  27. 27. Managing Discounts Connected at last.• Formula used to analyze discount strategy: Effective Annual Rate of Return Formula Discount Total Period 100% - Discount Days Saved• Scenario: A vendor provides a 1.5% discount if paid within 10 days: Effective Annual Rate of Return Formula 1.5% 10, net 30 1.5% 365 100% - 1.5% (30 - 10) Rate of Return 27.8%
  28. 28. Prevents Late Payments Connected at last.• Invoice sent direct to requisitioner• Critical payments such as utilities, tax, lease and rent• Working capital strategy communicated with supplier
  29. 29. Debit Balance/Escheatment Connected at last.• Debit balances result in overpayment to supplier• Timely follow-up for debit balances• Escheatment or unclaimed property• Uncleared checks address within 30 days of issuance• EFT’s eliminate escheatment
  30. 30. Polling Question #3 Connected at last.Debt balances and the escheatment process, should be managedthrough all of the following techniques except:a) Timely follow-up with the supplierb) Decreased amount of EFT’sc) Resolve uncleared checks, 30 days after issuanced) Handle escheatment process per the state regulations
  31. 31. Polling Question #3 Connected at last.Debt balances and the escheatment process, should be managedthrough all of the following techniques except:a) Timely follow-up with the supplierb) Decreased amount of EFT’sc) Resolve uncleared checks, 30 days after issuanced) Handle escheatment process per the state regulations
  32. 32. Due Diligence Connected at last.• Established controls for invoice processing• Aligned with Generally Accepted Accounting Principles• Tied to the Foreign Corrupt Practices Act (FCPA)• Support documentation including approvals
  33. 33. Improved Teamwork Connected at last.• Strong partnership with purchasing and operations• Work together to resolve disputes and to develop corrective actions• Communicate working capital plan to Treasury
  34. 34. Green Solutions Connected at last.• Supporting Documentation• Out-of-cycle check requests• Positive pay files• Real-time access to invoices• Procurement Card statements, reports, and receipts• Travel and Entertainment statements, reports, and receipts
  35. 35. Metrics Connected at last.• Cost Per Invoice• % of disputes• Cycle time to process• % of discounts taken• % of electronic invoices• # of duplicate payments• # of late payments• Invoices processed per FTE• # of electronic payments
  36. 36. Conclusion Connected at last.• Importance of the accounts payable function• Analytical versus transactional thinkers• Total working capital• Automation and technological solutions• Streamline and efficient processes• AP is the last stop prior to a payment being sent to a supplier
  37. 37. Connected at last. Questions?It’s time to Let Go and Gain Control. Automate your Accounts Payable. Visit www.anybill.com/ today!

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