Grow Your Bottom Line with AP and Invoice Automation

AP Presentation 1

Did You Know?• For best in class AP professionals, it takes on average 3.8 days to process an invoice and costs $3.09• For the bottom 30% of professionals it takes over 20 days at a cost of $38.77• For a medium sized organization processing 100,000 invoices per year, the cost is over $3.5 million• International Accounts Payable Professionals (IAPP) found that it costs – on average - $8 to process an invoice manually; other firms report processing costs are as high as $10-$20 for a single paper, fax or email invoice• 83% of invoices are still paper based• 60% of the clerical effort in a typical finance organization is spent on inefficient paper processes that a company financial transactions such as bill payments and collections management.• Data entry errors average 1.6% of the total AP transactions• AP Benchmarking Survey of over 450 AP departments reveal that 20 percent of respondents say 4 percent or more of vendor payments have errors• According to a survey, 75.8% of vendors and 59.5% of businesses reported invoice processing error rates of at least 1%, while 14.2% of vendors and 2.8% of businesses reported error rates of at least 5%.

Did You Know? 2

What Are the Benefits?Dramatically improve the way your company processes incoming invoices. You will lower costs, process invoice information faster with less staff and take advantage of more early-pay discounts. No matter how many invoices you process—or where you process them—it will minimize manual data entry and automatically capture and deliver accurate invoice data into your financial, enterprise content management, enterprise resource planning and document management systems.

With AP automation, managing your AP process gets easier, too. It’s easier to find past invoices with accurately indexed images in your document management system. Accounts payable clerks can focus on higher value-added tasks, such as resolving vendor invoice discrepancies. It becomes easier to monitor and control processing and payments with timely and accurate data delivered automatically. And your entire AP department will accomplish more in less time.

• Reduce manual data entry costs• Capitalize on early pay discounts• Increase invoice data accuracy• Improve cash flow cycle management• Shape it around your business rules• Automate accounting distribution of your line-item charges• Deliver accurate invoice data faster

What Are the Benefits? 3

Just Think About ItReduce Cycle TimesPrompt payments enable early payment discounts, eliminate late fees and reduce duplicate payments caused by suppliers resending overdue invoices. The result is increased supplier satisfaction and maximized cash flow.

Eliminate Lost or Misfiled DocumentsInvoices are captured online immediately so they never get lost or misfiled. The copying, faxing and resending of invoices is eliminated.

Reduce Document Transport and Storage CostsEliminates mailing invoices for review and approval reduces need for physical storage space.

Improve ProductivityReduced AP invoice preparation, manager approval and back office processing times increases efficiency.

Instant AccessAll this can be stored in a centralized location and can be accessed instantly, so any invoice or delivery disputes can be settled with a touch of a button or the click of a mouse. Just Think About It 4

The Key to AP Automation: Invoice ConversionPhysical & Digital PO Boxes Provided• Physical Pickup / Digital Mail Retreival• Mail & Email Processing and Sorting

Invoice Handling• Preparation• Scanning• Quality Control

Data Capture & Extraction• Pertitent invoice information captured - summary/detail• Matching extracted invoice information to vendor master file

Final Output - Digital Files Returned• File for import into existing ERP/MRP system• File for import into EDMS

Conversion is Key 5

Full OnIntegrationProviding EDMS• Server or Cloud-based EDMS to manage digital files within Accounts Payable

AP Automation• Automating purchase orders and receiving documents directly from ERP/MRP and into EDMS

Direct Integration• Ability to retreive documents (via EDMS) through tight integration right within your current ERP/MRP system • Create AP Invoice Workflows and Approval/Payment Routing - elimination of inefficient paper-based workflow

Integration 6

How Do We Do It?Kelley HartmanBiel’s Document ManagementProject Manager

Data Capture & Extraction MethodsBlanket PO• Full OCR• Template for Vendor• Line Item Detail

Non-PO• Utilities, Expense Reports, etc.• Line Item Detail• Point & Click Processing• Master Vendor File Lookup• Smaller Vendors

How Does it Work? 7

Why ShouldYou Do It?Success Story• Client averaged 1,500 invoices per month• They calculated their cost to process an invoice was $3.69 (this includes costs to retreive/open mail, data entry, shredding, etc.)• Biel’s was able to complete replace their invoice processing with our AP Invoice Automation system at a cost of $2.50 per invoice

Why Should You Do It? 8

ClientMonthly Cost = $5,535Yearly Cost = $66,420

Monthly Savings = $1,785Total Yearly Savings = $21,420

Biel’sMonthly Cost = $3,750Yearly Cost = $45,000