How Paperless Payables Can Streamline Ops and Improve Cash Flow

How Paperless Payables Can Streamline Opsand Improve Cash Flow

November 2017

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Agile is how you do business. But is agile how you run your operations?

How Paperless Payables Can Streamline Ops and Improve Cash Flow 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

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Using tech resources to improve operations can strengthen the whole business

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Here’s how you can gain a strategic advantage when you start by automating accounts payable >>

How Paperless Payables Can Streamline Ops and Improve Cash Flow



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Accounts Payable automation payoffs:


Streamlined accounting tasks –your staff gets more done

Better cost monitoring and management

More precise control over payment timing helps you manage cash flow



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1. Invoice receipt and entry2. Routing and approvals3. Payments

Target these 3 areas:




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• 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




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• 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




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• 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




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Ready to plan your paperless payables transition?


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

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• 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




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Why track metrics?


View improvement over time.

Compare your business to benchmarks for your industry.

Show a return on process improvements.



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• 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




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Change is an opportunity to improve process.

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Don’t digitize an inefficient workflow –fix the workflow and support it with automation.




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• 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




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You and your suppliers both benefit if they receive payments electronically —


but focus on payoffs to suppliers to make your case.



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• 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




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With better spending data available for analysis…

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…your company may find opportunities to consolidate suppliers or negotiate better terms.




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Know your starting KPIs so you can measure improvements.

Evaluate processes.

Encourage suppliers to transition with you.

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Review:Your checklist for implementing accounts payable automation

Choose tools that deliver on your data needs.




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Turning accounts payable into a fully digital process —


Saves time and money

Allows for more precise cash-flow management

Uncovers data to help you analyze costs and optimize supplier spending



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Want to know more about how electronic payments can help you reap the benefits of accounts payable automation?

Get advicefrom the experts at svb.com/commercial-cards/



https://www.svb.com/commercial-cards/


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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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How Paperless Payables Can Streamline Ops and Improve Cash Flow