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Keys to Success in AP Automation


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A Webinar presented by Image Processing Systems and PayStream Advisors on challenges, opportunities and success factors in automating the approval of accounts payable, substituting digital workflow for manual, paper-based processes.

Keys to Success in AP Automation

  1. 1. Keys to Success in AP Automation Presenters Henry Ijams – PayStream Advisors Greg Bartels - IPS
  2. 2. Agenda • Current State in AP • Challenges/Barriers • Managed Invoice Processing • IPS Overview
  3. 3. Henry Ijams Henry Ijams, CAPP/APM Managing Director PayStream Advisors, Inc. Mr. Ijams' 28 years of experience focuses on trends and technologies in financial operations automation including strategies regarding the automation and benchmarking of Purchasing and Payables processes. Through PayStream Advisors, Mr. Ijams consults with domestic and international organizations that want to take advantage of leading practices and automation solutions. Greg Bartels President & CEO IPS Mr. Bartels has been in the field of electronic imaging, document management, OCR, AP processing and electronic health records (EHR) for more than 25 years. Mr. Bartels is a board member and former President of the NJ Chapter of AIIM International (International Enterprise Content Management Association), and has built his career on directing document management, invoice automation and vital records projects for blue-chip companies, healthcare systems and large government organizations throughout the U.S. About the Speakers Greg Bartels
  4. 4. PayStream’s AP Survey PayStream’s Q4 2012 Electronic Invoice Survey of over 300 account payable and procurement professionals at U.S. based enterprises revealed strong opportunity in AP Automation. Key Insights: AP professionals are actively exploring invoice solutions with the goals: • Reduced processing costs, increased visibility • Increased on-time payments and capture of supplier discounts • Improved vendor satisfaction • Fewer duplicate invoices • Reduction in exceptions and discrepancies
  5. 5. Methods Used to Trade B2B Invoices Electronic invoicing increases as invoices traded via paper continue to decline.
  6. 6. AP Challenges • You can’t control the vendor • You can’t dictate to other departments • You can’t justify large capital investments in AP 6
  7. 7. Top Barriers to AP Solutions Lack of budget ranked as the top barrier to imaging solutions
  8. 8. Top AP Benchmarking Items Metric Laggards Average processing time from invoice receipt to approval 32 days % of Payments Made Electronically Zero Percentage of invoices received electronically 3% Percentage of invoices with discrepancies 25% Percentage of discounts captured 18% Mainstream Innovators 23 days 5 days 18% 85% 9% 32% 16% 4% 40% 75%
  9. 9. What Can You Do? • Focus on what you do control and work within that… – The technology you already have – The processes you use today – The current budget 9
  10. 10. Managed Invoice Processing PayStream Definition: A third party company receives and processes invoices; opens mail, scans or translates invoice information into actionable data. • Get rid of paper invoices to focus on value added work • Improve and automate your invoice processing • Move to 100% paperless invoicing day 1 • Add greater scalability to scanning processes • Adopt best practices in capture and validation • Enable automated matching Benefits:
  11. 11. AP automation myths Concerns of long ago are now unfounded: • Presumed lack of budget – Out of the box invoice automation are are affordable, even for smaller organizations. Upfront costs for an invoice automation are low. • Concern for low ROI – Majority of the customers who have deployed invoice solutions see the benefits of quicker approval processes and lower invoice processing costs.
  12. 12. Why Automated Workflow? • Static electronic invoice isn’t much better than a paper one. • True value of paperless lies in how successful companies are at assimilating invoice data into accounting systems and management workflows. • Integration yields best ROI
  13. 13. Benefits of Approval Workflow Quicker approval of invoices ranks as the top benefit to approval workflow
  14. 14. Managed Invoice Processing Scanning and data entry ranks as the top outsourced service.
  15. 15. Assessing where you are today • What are your current costs? – You need to understand your current cost of doing business • Document the facts & figures (metrics) – Determine the right project(s) for you – Help you prioritize those projects – Build your case • Learn how to communicate AP to the Steering Committee – Executives may not understand what you do but they understand statistics – Measure the success of your changes • What do the Stakeholders care about? – Know your audience 15
  16. 16. Invoice and Workflow Automation
  17. 17. Invoice Processing Workflow 17 Digital Workflow Digital Mailroom Intelligent Capture ImageServSM Document Hosting
  18. 18. Inside the Digital Mailroom 18
  19. 19. IPS Intelligent Capture
  20. 20. 20 IPS Digital Workflow
  21. 21. Invoice Processing Workflow 21 Digital Workflow Digital Mailroom Intelligent Capture ImageServSM Document Hosting
  22. 22. Takeaways • You don’t need to control the vendor. • You don’t need to dictate to other departments. 22 • You don’t need to make large capital investments in AP.
  23. 23. How to Get Started 23 Stakeholders Resources IT Support