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[Webinar] Unveiling the Benefits of Accounts Payable with The Institute of Financial Operations
[Webinar] Unveiling the Benefits of Accounts Payable with The Institute of Financial Operations
[Webinar] Unveiling the Benefits of Accounts Payable with The Institute of Financial Operations
[Webinar] Unveiling the Benefits of Accounts Payable with The Institute of Financial Operations
[Webinar] Unveiling the Benefits of Accounts Payable with The Institute of Financial Operations
[Webinar] Unveiling the Benefits of Accounts Payable with The Institute of Financial Operations
[Webinar] Unveiling the Benefits of Accounts Payable with The Institute of Financial Operations
[Webinar] Unveiling the Benefits of Accounts Payable with The Institute of Financial Operations
[Webinar] Unveiling the Benefits of Accounts Payable with The Institute of Financial Operations
[Webinar] Unveiling the Benefits of Accounts Payable with The Institute of Financial Operations
[Webinar] Unveiling the Benefits of Accounts Payable with The Institute of Financial Operations
[Webinar] Unveiling the Benefits of Accounts Payable with The Institute of Financial Operations
[Webinar] Unveiling the Benefits of Accounts Payable with The Institute of Financial Operations
[Webinar] Unveiling the Benefits of Accounts Payable with The Institute of Financial Operations
[Webinar] Unveiling the Benefits of Accounts Payable with The Institute of Financial Operations
[Webinar] Unveiling the Benefits of Accounts Payable with The Institute of Financial Operations
[Webinar] Unveiling the Benefits of Accounts Payable with The Institute of Financial Operations
[Webinar] Unveiling the Benefits of Accounts Payable with The Institute of Financial Operations
[Webinar] Unveiling the Benefits of Accounts Payable with The Institute of Financial Operations
[Webinar] Unveiling the Benefits of Accounts Payable with The Institute of Financial Operations
[Webinar] Unveiling the Benefits of Accounts Payable with The Institute of Financial Operations
[Webinar] Unveiling the Benefits of Accounts Payable with The Institute of Financial Operations
[Webinar] Unveiling the Benefits of Accounts Payable with The Institute of Financial Operations
[Webinar] Unveiling the Benefits of Accounts Payable with The Institute of Financial Operations
[Webinar] Unveiling the Benefits of Accounts Payable with The Institute of Financial Operations
[Webinar] Unveiling the Benefits of Accounts Payable with The Institute of Financial Operations
[Webinar] Unveiling the Benefits of Accounts Payable with The Institute of Financial Operations
[Webinar] Unveiling the Benefits of Accounts Payable with The Institute of Financial Operations
[Webinar] Unveiling the Benefits of Accounts Payable with The Institute of Financial Operations
[Webinar] Unveiling the Benefits of Accounts Payable with The Institute of Financial Operations
[Webinar] Unveiling the Benefits of Accounts Payable with The Institute of Financial Operations
[Webinar] Unveiling the Benefits of Accounts Payable with The Institute of Financial Operations
[Webinar] Unveiling the Benefits of Accounts Payable with The Institute of Financial Operations
[Webinar] Unveiling the Benefits of Accounts Payable with The Institute of Financial Operations
[Webinar] Unveiling the Benefits of Accounts Payable with The Institute of Financial Operations
[Webinar] Unveiling the Benefits of Accounts Payable with The Institute of Financial Operations
[Webinar] Unveiling the Benefits of Accounts Payable with The Institute of Financial Operations
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[Webinar] Unveiling the Benefits of Accounts Payable with The Institute of Financial Operations

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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 …

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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  • 1. Connected at last. Unveiling the Benefits of Accounts Payable within an Organization March 22, 2012
  • 2. Agenda Connected at last. • • • • • Introduction Major Benefits Other Benefits Conclusion Questions
  • 3. Introduction Connected at last. • Role of AP in organization Better Visibility and reporting • Importance of AP 10.0% 6.0% 25.5% 15.9% • Benefits of AP Automation Lower Costs Faster Turnaround 18.3% 24.3% Fewer Errors No Benefit Gained Better Management of Working Capital • Other Benefits
  • 4. Connected at last. Major Benefits of Accounts Payable
  • 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. 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. 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. Workload Balance Connected at last. • • • • • • Bottleneck Management Invoice queues optimally structured Management of peak volumes Flexible among AP team Reporting available Published metrics
  • 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. Improved Quality Connected at last. • Avoids degradation of reputation • Enhances departmental productivity • Minimizes duplicate processing and payments • Improves Customer Satisfaction
  • 11. Supplier Satisfaction Connected at last. • Reduction of credit holds • Avoids potential price increase • Favorable for development of long-term relationships
  • 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. 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. Globalization/Centralization Connected at last. • Allows for one central point for processing • Enhances visibility • Standardization of processes
  • 15. Polling Question #1 Connected at last. The globalization and centralization of the accounts payable process will provide all of the following benefits except: a) b) c) d) One center point of processing Guarantee that the cost-per-invoice will decrease Facilitate the standardization of polices and procedures Enhanced Visibility
  • 16. Polling Question #1 Connected at last. The globalization and centralization of the accounts payable process will provide all of the following benefits except: a) b) c) d) One center point of processing Guarantee that the cost-per-invoice will decrease Facilitate the standardization of polices and procedures Enhanced Visibility
  • 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. 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. 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. 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. Connected at last. Other Benefits of Accounts Payable
  • 22. The People Connected at last. • Analytical versus transactional thinkers • ‘Soft’ skills training • Reward and recognition
  • 23. Polling Question #2 Connected at last. Hiring the people with the required level of competency will provide all of the following benefits except: a) b) c) d) Focus on analysis and exception handling Increased level of customer service Efficiencies gained through reduction of headcount Increased volume related to data entry
  • 24. Polling Question #2 Connected at last. Hiring the people with the required level of competency will provide all of the following benefits except: a) b) c) d) Focus on analysis and exception handling Increased level of customer service Efficiencies gained through reduction of headcount Increased volume related to data entry
  • 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. 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. Managing Discounts Connected at last. • Formula used to analyze discount strategy: Effective Annual Rate of Return Formula Discount 100% - Discount Total Period 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% 100% - 1.5% Rate of Return 365 (30 - 10) 27.8%
  • 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. 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. Polling Question #3 Connected at last. Debt balances and the escheatment process, should be managed through all of the following techniques except: a) b) c) d) Timely follow-up with the supplier Decreased amount of EFT’s Resolve uncleared checks, 30 days after issuance Handle escheatment process per the state regulations
  • 31. Polling Question #3 Connected at last. Debt balances and the escheatment process, should be managed through all of the following techniques except: a) b) c) d) Timely follow-up with the supplier Decreased amount of EFT’s Resolve uncleared checks, 30 days after issuance Handle escheatment process per the state regulations
  • 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. 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. 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. 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. 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. 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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