THE PROBLEM WITH PAPER Presented by Jim Campbell & Michele - - PowerPoint PPT Presentation

THE PROBLEM WITH PAPER

Sponsored by

Presented by Jim Campbell & Michele Retzbach

Jim Campbell

Vice President of Sales, Construction

Meet the Speakers

Michele Retzbach

Solutions Consultant

Agenda

1

Trends in Payment Technology

2

Challenges in Construction

3

Considerations Before Automating

4

Solutions within AP Automation

WE LIVE IN A DIGITAL INTERCONNECTED WORLD

Real Estate Construction Community Association Management Healthcare Non-profits Hospitality Finance Technology Education

EVERY SINGLE INDUSTRY IS SHIFTING TO KEEP UP.

Real Estate Construction Community Association Management Healthcare Non-profits Hospitality Finance Technology Education

TRENDS IN PAYMENT TECHNOLOGY

1914 1958 1974 1994 1999 2012 2014 2020

Hedman Manufacturing Co developed the F&E Check Writer machine Bank of America issues the first credit card Electronic credit card terminals begin to appear Amazon was founded, becoming an e- commerce pioneer PayPal was founded AvidXchange launched the AvidPay functionality Apple introduced Apple Pay for iPhone users to increase mobility of making payments Integrated accounting systems and procure-to- pay solutions facilitate the shift in B2B payments

THE WORLD OF AP IS RAPIDLY CHANGING

Administrative costs are mounting – over $2.15 billion annually 70% of all B2B payments are made by check – 80% for small and medium businesses B2B commerce is going digital and AP is being left behind

Nearly half of construction professionals report there are three processes still dependent on paper based or manually created electronic files

50%

More than two out of five construction professionals (43%) say the biggest hindrance to automating business processes is that there are too many systems that do not integrate.

43%

CONSTRUCTION CHALLENGES

said automation technology would be extremely helpful in preparing for future business continuity needs.

45%

CONSTRUCTION CHALLENGES IN AP

• Received in a

huge variety of formats

• Invoices are not

standard across suppliers

• Non-standard

data means manual data entry to ERP

• Costly manual

process

• Prone to errors
• Invoices must be

matched to purchase orders/ contracts

• Errors add

manual reconciliation/ resolution

• Tracking down

the right approvers is time consuming

• Slow process

results in missed discounts / late payments

Intaking Invoices

• Filing cabinets

and stacks of paper

• Fragmented and

siloed systems

• Manual data

entry and increased likelihood of error

Capturing Data Matching

Approvals

Reporting

YET…

MOST B2B INVOICES AND PAYMENTS ARE STILL PAPER BASED.

$3-7

Total cost of processing a traditional check

74%

• f companies

experienced actual or attempted check fraud

We looked at this and realized, people's lives are better without the paper check.

POLL QUESTION: HOW MANY VENDOR PAYMENTS DO YOU MAKE IN A MONTH?

• A. 100 - 250
• B. 251 - 500
• C. 501 - 1,000
• D. 1,000 +

12

Volumes – Greater than 100 invoices or payments per month? Process - Is it all currently manual? Which steps need eliminated, maintained or improved? Bottlenecks – External forces, like reliance on U.S. mail or Internal forces like people/approval Scale - In growth mode/needing to increase size of AP team

CONSIDERATIONS BEFORE AUTOMATING:

WILL AUTOMATION CHANGE THE AP PROCESS THAT WE CURRENTLY HAVE IN PLACE?

BEFORE AUTOMATION

INVOICE FILED INVOICE SELECT FOLLOW UP CHECK BANK REC CODE OPEN MAIL ROUTE INVOICE APPROVE MANUAL DATA ENTRY

After Automation

SELECT CODE APPROVE

SUPPLIERS CAN INVOICE MULTIPLE WAYS

RECEIVE INVOICE CAPTURE HEADER DETAIL SUBMIT FOR APPROVAL

CAPTURE

INDEXING

PROCESS IMPROVEMENT SUMMARY

Optimize Processes for Invoices and Payments

Reduce manual data entry Improve transaction visibility Institute approval workflows Gain security and control

HOW WILL AP AUTOMATION WORK WITH MY ACCOUNTING SYSTEM?

INTEGRATIONS

Multitude of accounting systems created for the construction industry, integration between ERP and AP automation is key.

COMPLETE SOLUTION FOR AP AUTOMATION

Purchase Order Application Bill Services Invoice Application Pay Application Pay Services Your Accounting System/ERP

WHAT DOES THE IMPLEMENTATION PROCESS LOOK LIKE?

IMPLEMENTATION TIMELINE

Continuing to do today’s job with yesterday’s methods delays profitability for business tomorrow.

Online, mobile and real-time information are must haves Organizations must be ready to grow with or without extra headcount Outsourced services are becoming a common way of doing business A new era of employees want to elevate their value and refuse to “push paper” Security is paramount

Business who navigate the transition from manual to modern payment systems are poised to win

IF NOT NOW, WHEN?

“The greatest danger in times of turbulence is not the turbulence – it is to act with yesterday’s logic.”

– Peter Drucker

WILL YOUR BUSINESS BE PREPARED?

POLL QUESTION: WHAT IS YOUR NEXT STEP?

26

• A. I’D LIKE TO SEE A CUSTOM DEMO.
• B. I WANT MORE INFORMATION ON AP AUTOMATION.
• C. I AM JUST HERE TO LEARN.

Q&A SESSION

27

To submit a question for Jim or Michele, type it into the chat.

THANK YOU FOR ATTENDING!

28

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