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How Paperless Payables Can Streamline Ops and Improve Cash Flow

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Digitizing your accounts payable can make your whole company more agile by simplifying accounting and monitoring costs. Use Silicon Valley Bank’s checklist to help with your company’s transition to paperless payables.

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How Paperless Payables Can Streamline Ops and Improve Cash Flow

  1. 1. How Paperless PayablesCan Streamline Ops and Improve Cash Flow November 2017
  2. 2. svb.com Agile is how you do business. But is agile how you run your operations? HowPaperlessPayablesCanStreamlineOpsandImproveCashFlow 2 Lean, growing companies often focus on using the latest tech to develop and deliver their products… …while their back-office processes remain informal and manual
  3. 3. svb.com Using tech resources to improve operations can strengthen the whole business 3 Here’s how you can gain a strategic advantage when you start by automating accounts payable >> HowPaperlessPayablesCanStreamlineOpsandImproveCashFlow
  4. 4. svb.com Accounts Payable automation payoffs: HowPaperlessPayablesCanStreamlineOpsandImproveCashFlow 4 Streamlined accounting tasks – your staff gets more done Better cost monitoring and management More precise control over payment timing helps you manage cash flow
  5. 5. svb.com 1. Invoice receipt and entry 2. Routing and approvals 3. Payments Target these 3 areas: HowPaperlessPayablesCanStreamlineOpsandImproveCashFlow 5
  6. 6. svb.com • Offer suppliers a web-based interface to directly upload invoices or enter information. • Eliminate time spent keying in invoice data. • Eliminate errors from manual data entry. 1. Invoice receipt and entry HowPaperlessPayablesCanStreamlineOpsandImproveCashFlow 6
  7. 7. svb.com • Use software that matches invoices with POs and routes for approval. • Reduce duplicate or inappropriate payments. • Allow finance staff to easily track invoice status, avoid late payments. 2. Routing and approvals HowPaperlessPayablesCanStreamlineOpsandImproveCashFlow 7
  8. 8. svb.com • Time payments precisely by pre- scheduling electronic disbursements. • E-pay with cards to gain transactional data, which speeds reconciliation and can improve procurement decisions. • Automate virtual card number (VCN) payments to add security and fine- grained controls. 3. Payments HowPaperlessPayablesCanStreamlineOpsandImproveCashFlow 8
  9. 9. svb.com Ready to plan your paperless payables transition? HowPaperlessPayablesCanStreamlineOpsandImproveCashFlow 9 Put these items on your to-do list>> Know your KPIs Evaluate processes Encourage suppliers to transition with you Choose tools that deliver on your data needs 1 2 3 4
  10. 10. svb.com • What’s your time – and labor cost – to process an invoice manually? • What percentage of available early-pay discounts do you capture? • What percentage of payments are wrong? • What’s your percentage of invoice exceptions? Know your KPIs HowPaperlessPayablesCanStreamlineOpsandImproveCashFlow 10
  11. 11. svb.com Why track metrics? HowPaperlessPayablesCanStreamlineOpsandImproveCashFlow 11 View improvement over time. Compare your business to benchmarks for your industry. Show a return on process improvements.
  12. 12. svb.com • Map your processes, the steps and time involved. • Compare your KPIs to other companies to see biggest room for improvement. • Identify the procedures you can streamline. Evaluate processes HowPaperlessPayablesCanStreamlineOpsandImproveCashFlow 12
  13. 13. svb.com Change is an opportunity to improve process. 13 Don’t digitize an inefficient workflow – fix the workflow and support it with automation. HowPaperlessPayablesCanStreamlineOpsandImproveCashFlow
  14. 14. svb.com • Help suppliers see how electronic invoicing and payments saves them time and money. • Emphasize speed and security of credit cards or ACH transfers. • Consider negotiating short payment terms with suppliers who agree to accept cards. • Ask your bank for help facilitating the process. Encourage suppliers to transition with you HowPaperlessPayablesCanStreamlineOpsandImproveCashFlow 14
  15. 15. svb.com You and your suppliers both benefit if they receive payments electronically — HowPaperlessPayablesCanStreamlineOpsandImproveCashFlow 15 but focus on payoffs to suppliers to make your case.
  16. 16. svb.com • Look for payables systems that provide easy access to data. • Ensure that formats can be ingested by your favorite analysis tool. • Make sure you can access the data you’re most likely to use for evaluating KPIs and planning procurement strategies. Choose tools that deliver on your data needs HowPaperlessPayablesCanStreamlineOpsandImproveCashFlow 16
  17. 17. svb.com With better spending data available for analysis… 17 …your company may find opportunities to consolidate suppliers or negotiate better terms. HowPaperlessPayablesCanStreamlineOpsandImproveCashFlow
  18. 18. svb.com Know your starting KPIs so you can measure improvements. Evaluate processes. Encourage suppliers to transition with you. 18 Review: Your checklist for implementing accounts payable automation Choose tools that deliver on your data needs. HowPaperlessPayablesCanStreamlineOpsandImproveCashFlow
  19. 19. svb.com Turning accounts payable into a fully digital process — HowPaperlessPayablesCanStreamlineOpsandImproveCashFlow 19 Saves time and money Allows for more precise cash-flow management Uncovers data to help you analyze costs and optimize supplier spending
  20. 20. svb.com Want to know more about how electronic payments can help you reap the benefits of accounts payable automation? Get advice from the experts at svb.com/commercial-cards/
  21. 21. ©2017 SVB Financial Group. All rights reserved. SVB, SVB FINANCIAL GROUP, SILICON VALLEY BANK, MAKE NEXT HAPPEN NOW and the chevron device are trademarks of SVB Financial Group, used under license. Silicon Valley Bank is a member of the FDIC and the Federal Reserve System. Silicon Valley Bank is the California bank subsidiary of SVB Financial Group (Nasdaq: SIVB). This material, including without limitation the statistical information herein, is provided for informational purposes only. The material is based in part on information from third-party sources that we believe to be reliable, but which have not been independently verified by us, and for this reason, we do not represent that the information is accurate or complete. The information should not be viewed as tax, investment, legal or other advice, nor is it to be relied on in making an investment or other decision. You should obtain relevant and specific professional advice before making any investment decision. Nothing relating to the material should be construed as a solicitation, offer or recommendation to acquire or dispose of any investment or to engage in any other transaction.

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