The Benets of AP Automation: Why Companies of All Sizes Should Seize the Advantage

PETER BEPLER, CO-FOUNDER AND PRESIDENT OF ANYBILL

Since the days of the dinosaur, or thereabouts, manual accounting systems and paper-based invoices have been the backbone of Accounts Payable departments. These familiar tools and processes met the needs of 19th and 20th century enterprises, supporting the nancial reporting and control of nearly every organization in the world.
The time for change has come. Our current economic realities and the associated regulatory environment are driving the evolution of AP. Market leaders are harnessing new processes and technologies to achieve previously unheard of levels of timeliness, accuracy, visibility and control. While many businesses remain tied to labor-intensive manual processing, its becoming increasingly difcult for them to match automated competitorsor address concerns central to Sarbanes-Oxley (SOX) compliance. Top-performing rms are realizing signicant benets through AP automation. Five key advantages gained include: 1) COST ADVANTAGE through reduced operating expenses 2) CASH MANAGEMENT ADVANTAGE through better forecasting and working capital management 3) DISCOUNT AND REBATE ADVANTAGE plus penalty avoidance 4) SIMPLIFIED COMPLIANCE with SOX and other government regulations 5) FRAUD MITIGATION deter fraud before it occurs and detect if it does

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THE BENEFITS OF AP AUTOMATION: WHY COMPANIES OF ALL SIZES SHOULD SEIZE THE ADVANTAGE

An AP Makeover
A 2013 report by PayStream Advisors shows, More SMEs (small to medium enterprises) rank themselves as innovators, having made signicant investments in automationup 6 percent to 21 percent in 2012. The transition to automation is at last gathering speed, having been slowed in the past by aversion to change, assumptions about cost, and misalignment between the CFO and AP department goals. The focused, operational concerns of a typical AP department are shown in The Accounts Payable Networks chart below.
TOP CONCERNS WORKING IN ACCOUNTS PAYABLE
Improving process/reducing errors Automating manual processes Managing time/improving productivity On time payments Reducing costs Leading and motivating staff Complying with tax and regulatory issues Developing and maintaining effective policies Communicating with internal and external customers Visibility of payables for cash management Spend analysis Other 0
2% 1% 2% 4% 5% 6% 8% 7% 12% 11% 15% 27%

10

15

20

25

30

The CFOs concerns are broader, including the economy (i.e., consumer demand, Federal policies, and price pressure) and the company in total (i.e., working capital management and ability to maintain margins and forecast results). While the goals of each correspond, true process streamlining relies on their skillful combination, and a clear articulation of AP automations benets. The goals of your organizations CFO and AP department are combined through agreement on the need for, and method of, process change. This means centralization of AP, and commitment to automation. The benet of automation can be communicated to the CFO in the context of shared goals, such as improved visibility, margin maintenance through spend analysis, elimination of costly manual processes, and savings achieved through on-time payments.

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1801 Pennsylvania Avenue, NW, Suite 700 | Washington, DC 20006 | W 202-682-6300 | F 202-833-2141

THE BENEFITS OF AP AUTOMATION: WHY COMPANIES OF ALL SIZES SHOULD SEIZE THE ADVANTAGE

With the appropriate automation solution in place, its economic benets are quickly apparent. Expect increased productivity, greater visibility and discount capture, and better vendor pricing.
PRODUCTIVITY. The combination of automated solutions and process change

delivers the greatest results to AP departments. Centralizing AP into a shared service environment, for example, and the integration of front-end scanning and e-invoicing boosts staff productivity. Invoices pass through fewer touch points, and management can become more strategic in business planning, expense management and resource allocation.
VISIBILITY. Through automation, data becomes visible from the moment of entry. This

means accruals can be made more accurately, and all invoices can be tracked at any point by AP, Purchasing and/or vendors. Enhanced, comprehensive data reporting means cash requirements can accurately be forecast, progress can easily be tracked against nancial goals, and blind spots are reduced.
DISCOUNT CAPTURE. Fast cycle times let companies target discount capture. Automation cuts the number of days it takes to make a vendor payment, resulting in demonstrably higher levels of efciency and protability. One major corporation estimates a $200 million addition to the bottom-line gained through discounts. Automation also saves money through improved spend analysis and supply standardizationcatching inefciencies like buying a product from the same vendor at different prices.

Selecting an Automation Vendor

Your selection of an automation vendor begins with several considerations: a) How will the chosen solution t into your existing organizationand future plans, b) Do you have monthly or seasonable scalability considerations and have you allowed for M&A activity, and c) Have you looked at short-term options as part of a longer-term solution (i.e., the use of scanning while automating invoice processing)? The rising popularity of cloud-based services is indisputable. Software as a Service (SaaS) has proven itself as one of the best ways to minimize set-up and conguration costs while boosting overall efciency. It offers other advantages including off-site back-up storage and recovery, secure availability from any location, and automatic updates. Finally, as companies of all sizes embrace AP automation, they nd integration with existing in-house technologies and processes can be relatively simple when theyve paired with a capable vendor.

ANYBILL.COM | INFO@ANYBILL.COM

1801 Pennsylvania Avenue, NW, Suite 700 | Washington, DC 20006 | W 202-682-6300 | F 202-833-2141

THE BENEFITS OF AP AUTOMATION: WHY COMPANIES OF ALL SIZES SHOULD SEIZE THE ADVANTAGE

Summary
With automation, AP departments are uniquely positioned to cut costs, improve operational efciency, and enhance regulatory compliance. The attending process changes align the goals of the CFO and AP departments by reducing costly errors, switching staff focus to more strategic areas, maintaining (or improving) margins, and more. The trend toward automation is undeniable and continues to gain momentum. As mentioned above, the time for change has come. Organizations that postpone adoption of AP automation also postpone leveraging a powerful competitive weapon.

About the Author

Peter directs Anybills business strategy, focusing on the companys marketing, sales, channel partners and communications. As a co-founder, he plays a key role in developing the Anybill solution and championing accounts payable automation for the SMB market. Before co-founding Anybill, Peter was Director of Business Development for UniverseONE, Inc., a pioneer of online marketing. There he developed and implemented web marketing strategies for clients and spearheaded the development of online marketing best practices. Peter holds a Bachelor of Arts degree in Economics from Kenyon College. In his free time he enjoys jumping out of helicopters.

About Anybill
Built on the premise that all payments are critical, Anybill was created in 2001 to transition any AP transaction to an automated solution. We combine our proprietary technology with unmatched customer service to deliver a complete Software-as-a-Service solution. Clients retain efcient workows while gaining greater visibility and control, better cash ow management, streamlined approval processes, 24/7 accessibility, and increased auditor condence. Anybill works with clients ranging from non-prot associations to some of the largest multinationals. We are headquartered in Washington, DC, and are SSAE 16 SOC compliant.
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1801 Pennsylvania Avenue, NW, Suite 700 | Washington, DC 20006 | W 202-682-6300 | F 202-833-2141