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Stop  Thinking  About  it  and  Automate!  

Henry  Ijams  –  PayStream  Advisors  Peter  Bepler  –  Anybill  Evelyn  Benne;  –  Lincoln  Trust    October  10,  2013      

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Henry  Ijams  

Henry  Ijams  Managing  Director  PayStream  Advisors,  Inc.    Mr.  Ijams'  28  years  of  experience  focuses  on  trends  and  technologies  in  financial  operaOons  automaOon  including    strategies  regarding  the  automaOon  and  benchmarking  of  Purchasing,  Order  to  Cash,  and  Payables  processes.      Through  PayStream  Advisors,  Mr.  Ijams  consults  with  domesOc  and  internaOonal  organizaOons  that  want  to  take  advantage  of  leading  pracOces  and  automaOon  soluOons.    When  he’s  not  running  to  catch  an  airplane,  Henry  can  be  found  racing,  biking  or  swimming  on  the  roads  and  lakes  of  North  Carolina,  his  adopted  home.    Thankfully  his  kids  are  used  to  the  excessive  energy  that  Henry  and  his  wife  display  for  outdoor  exploits.      Henry  has  an  MBA  from  the  University  of  North  Carolina.    His  wife  is  not  impressed.    

Today’s  Presenter  

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Today’s  Guest  Faculty  

Peter  Bepler  

 Peter  Bepler  President  and  Co-­‐Founder  Anybill  

Peter  directs  Anybill’s  business  strategy,  focusing  on  the  company’s  markeOng,  sales,  channel  partners  and  communicaOons.    As  a  co-­‐founder,  he  plays  a  key  role  in  developing  the  Anybill  soluOon  and  championing  accounts  payable  automaOon  for  the  SMB  market.      Before  co-­‐founding  Anybill,  Peter  was  Director  of  Business  Development  for  UniverseONE,  Inc.,  a  pioneer  of  online  markeOng.    There  he  developed  and  implemented  web  markeOng  strategies  for  clients  and  spearheaded  the  development  of  online  markeOng  best  pracOces.    Peter  holds  a  Bachelor  of  Arts  degree  in  Economics  from  Kenyon  College.    In  his  free  Ome  he  enjoys  jumping  out  of  helicopters.  

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PayStream  Advisors  

Research  and  Advisory  Services  for  Financial  OperaAons:  -­‐  E-­‐Invoicing  -­‐  AP  AutomaOon  -­‐  P2P  Peer  Benchmarking    -­‐  Electronic  Payments  -­‐  T&E  Expense  Management  -­‐  Receivables  Document  Management  -­‐  eBilling  -­‐  PayStream  P2P  Summit    www.paystreamadvisors.com  

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Agenda  

•  Current  landscape  of  AP  departments  •  Benefits  of  automaOon    •  How  to  create  an  effecOve  business  plan    •  How  to  get  buy-­‐in  •  What  the  innovators  are  doing  

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AP  AutomaAon  AdopAon  Rate  by  Industry  

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*  AutomaOon  adopOon  rates  by  company  size  have  been  esOmated  based  on  PayStream’s  surveys  on  Imaging  automaOon,  eInvoicing  and  ePayments  with  total  number  of  response  of  more  than  1,000.    

Market  adopOon  rate:  46%  

Below  average  adopOon  

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Pain  Points  with  Invoices  

Source:  Invoice  AutomaOon  Benchmarking  2012  

Q:  What  are  the  biggest  challenges  your  organizaOon  faces  in  the  invoice  management  process?  

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InvesAgate  the  Benefits  

Build  the  Business  Case  

Overcome  the  Barriers/  resources  

Becoming  Empowered:  Before  you  can  begin  your  project,  you  need  to  speak  the  language  of  your  Controller/CFO.  

Build  the  business  case  for  your  project.  

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•  Are  you  buried?  •  Do  you  see  a  way  out?  

A  LiNle  Overwhelmed?  

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Overcoming  Stuck  

•  Share  the  Benefits  •  Develop  a  Business  Plan  •  Overcome  the  barriers  

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Best  PracAces  in  Transforming  AP  •  Centralize  receipt  /  payments  þ    •  Scan/Automated  entry–    ✓    or  ý •  Approval  Workflow  –  ✓  or  ý  •  Automated  Payments    ý

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InvesAgate  the  Benefits  

Build  the  Business  Case  

Overcome  the  Barriers/  resources  

StarAng  Your  Project:  •  Step  1:  Measure  your  opportuniAes.  

•  How  many  invoices  does  your  organizaOon  process?    •  How  many  payments?    •  What  does  it  cost  you  to  process  an  invoice  and  payment?  •  Take  advantage  of  resources  like  PayStream’s  free  research  reports  and  

Cost  Per  Invoice  Calculator  

•  Next,  compare  your  costs  with  automaAon  costs.  •  What  your  cost  per  invoice  opportunity?  

•  Simple  Savings  Opportunity  Method:  •  Average  Cost  for  AP  to  Process  an  automated  invoice:      <  $3.50  (vs.  Avg  Paper  Cost  $6.83)  •  Average  Cost  for  AP  to  Process  an  automated  payment:    <  $2.00  (vs.  Avg.  Check  Cost  $5.50)  

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InvesOgate  the  Benefits  

Build  the  Business  Case  

Overcome  the  Barriers/  resources  

Following  Through  With  Your  Project:  Now  that  you  have  an  idea  of  how  much  you  could  be  saving  your  organizaOon….  

•  Step  2:  Research  the  SoluAons  Market  •  Which  sooware  is  right  for  your  organizaOon?    •  What  makes  one  soluOon  different  from  another?    •  Does  it  make  sense  to  manage  invoice  scanning  at  your  company?  •  Bonus  offer:    Use  PayStream’s  business  case  builder  

 

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InvesOgate  the  Benefits  

Build  the  Business  Case  

Overcome  the  Barriers  

How  do  you  build  a  Bullet  Proof  business  case?  

•  Step  3:  Gain  ExecuAve  Buy-­‐In.  •  Share  the  results  of  your  baseline  business  case  and  research  with  your  

internal  leaders,  and  volunteer  to  become  the  project  lead  during  implementaOon.  

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AP  AutomaAon  Savings  CalculaAng  how  much  AP  costs  you  today  

Acme  Catalog  employee  labor  costs  are  allocated  in  the  table  below.  Fully  loaded  employee  costs  assume  28%  average  overhead  for  fringe  benefits.  

Sample  Company  Business  Case    Acme  Catalog  Sales  of  “Hazardous  Goods”    MS  Dynamics  •  4,000  invoices/Month  •  6  Staff  in  AP  •  1  Supervisor  •  1  Manager  •  3,200  Checks/month  

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AP  AutomaAon  Staff  Savings  

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CalculaAng  how  much  AP  costs  you  today  

Acme  Catalog  employee  labor  costs  are  allocated  in  the  table  below.  Fully  loaded  employee  costs  assume  28%  average  overhead  for  fringe  benefits.  

The Cost of Acme Catalog’s Current Accounts Payable Process

Processing Mail

Entering Data

Managing Exceptions and Providing

Customer Service Vendor Master

Management Payment

Processing AP Staff

Oversight Total

Full Time Equivalents 0.75 1.8 1.9 0.25 0.45 0.15 5.3

Names Danny & Mary

Danny, Annie, Anna, Mary &

Rob

Annie, Anna, Mary, Oscar, Rob

Annie, Anna, Mary, Oscar, Rob Annie & Oscar John

Annual Cost of Labor $34,300 $108,735 $117,585 $15,728 $28,620 $20,625 $325,593

Acme  Catalog’s  best  automaAon  opportuniAes  

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InvesOgate  the  Benefits  

Build  the  Business  Case  

Overcome  the  Barriers/  resources  

Overcoming  Obstacles  to  Lead:  

•  Many  AP  technologies  cost  tens  of  thousands  of  dollars  and  IT  resources  to  implement.    

•  But  not  all…  

•  InnovaAve  providers  offer  simple,  low  cost  technology  that  requires  minimal  resources.    

•  Lack  of  Ame,  budget,  and/or  resources  is  no  longer  a  valid  excuse  

•  What’s  holding  you  back?      

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Find  OperaAonal  and    Strategic  Value  

Strategic benefits Operational benefits

90-95% reduction in paperwork and manual processing

Improved transparency and spend visibility

25-35% improvement in labor productivity

Eliminates lost invoices, late payments

~2% of revenue in bottom line savings from indirect spend control

$100’s+ of early payment discount opportunity

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Reducing  Your  Risk  –    Finding  the  Right  SoluAon  

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Guest  Faculty  Evelyn  Benne;  Lincoln  Trust  Evelyn  has  over  twenty  years  of  experience  in  general  ledger  accounOng,  financial  reporOng,  budgeOng  and  forecasOng  as  a  Senior  Accountant    and  Financial  Analyst.    At  Lincoln  Trust  Company,  Evelyn  provides  a  full  range  of  accounOng  support.          Lincoln  Trust  is  a  leading  naOonal  provider  of  trust  and  custodial  services.    When  she  is  not  working,  Evelyn  and  her  husband  enjoy  traveling  in  their  RV.    Evelyn  is  a  CerOfied  Public  Accountant.    

Evelyn  Benne3  

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Case  Study:  Lincoln  Trust  Metrics  •  AccounOng  System:  Microsoo  Dynamics  SL  •  Average  number  of  Invoices  per  month:  130  •  Average  number  of  vendors  paid  per  month:  95  

Challenges  •  Previously  relied  on  paper  invoices  and  manual  processing  for  invoice  

management  •  AccounOng  staff  spent  45  hours  per  week  processing  50-­‐60  invoices  

 SoluAon  •  Automated  their  AP  with  Anybill  which  increased  efficiency  and  visibility  in  

their  AP  process    Results  •  Frees  their  staff  from  mundane  tasks  •  Provides  clear  and  complete  visibility  throughout  their  AP  process  •  24/7  access  to  real-­‐Ome,  acOonable  data  anyOme,  anywhere  •  Slashes  processing  Ome  and  errors    

     

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Anybill  Overview  Company  •  Based  in  Washington,  DC  •  Founded  in  2001  •  1,500+  Clients  •  SAS  70  Type  II  |  SSAE  16  (SOC)  CerOfied  •  Local  Service  Bureau  &  Customer  Service  Team  •  Provides  end-­‐to-­‐end  AP  AutomaOon  and  Tax  Payment  SoluOons  

Service  •  Streamlines  and  automates  the  AP  process  to  maximize  cash  management  and  increase  financial  

controls.  •  Takes  everything  from  the  receipt  and  capture  of  an  invoice  on  the  front  end  to  the  approval  and  

payment  on  the  backend.  •  Combines  sooware  and  outsourcing  to  reduce  the  cost  of  invoice  receipt,  processing  and  payment.    

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Ques%ons?      Henry  Ijams      Henry.ijams@paystreamadvisors.com      www.paystreamadvisors.com      (704)  523-­‐7357