Posted by Roberta Lee on Thu, Jan 29, 2009
Accounts
payable is not rocket science. However complexities in the process seem to be
common place. Complexities cost mucho
time and effort ultimately taking a big bite out of the bottom-line.
Most
organizations payables processes grow organically or through acquisition along
with the needs of the business. Over time, with added volume and locations,
those processes often become cumbersome and unmanageable. By this time, they review their options and
either turn to a pricey accounting system upgrade or live with the current
setup. It’s up for debate on which
ultimately costs more, however it’s usually the later as resistance to change
is generally the road most travelled.
Let’s take
another look at these home grown complexities. The belief that each company
runs their ap differently “we are unique” is standard fair amongst operations.
Sure there is uniqueness to industries, or how business is conducted. But the
objective and outcomes are always the same, place an order, receive a bill,
code and approve it, and pay it. Really
companies are running the same process in slightly different and mostly manual
ways.
When the
Ford model T was introduced to world through standardized production, it made a
huge amount of sense and continues to be a massive factor in everything we
serve and produce today. Are the
benefits of standardization not available to the ap process? If the objectives
are the same, and the outcome is the same, why are businesses not looking to
standardize and take advantage of the same efficiencies and economies.
Truth is
most are not… yet. Most companies are not in the accounting business, nor
should they be. It’s a necessary evil. They don’t have time to focus in on
process improvement while running their business.
Incorporating
accounting best practices right from company inception is ideal but hardly
realistic, at least not until recently.
Today, there are solutions that expand the functionality of conventional
accounting applications and many of them are web-based and affordable to the
small and medium sized businesses. These
solutions offer built-in best practices to help businesses with compliance and
efficiency to allow them to concentrating on the core competencies of the business
rather than the paperwork involved with running the business.
Creating
efficiencies on your own, without the expertise and tools is impossible.
Standardizing and incorporating best practices right from company inception is
ideal but hardly realistic, at least not until recently. Today, there are
solutions that expand the functionality of conventional accounting
applications. Many of them are web-based and affordable to the small and medium
sized businesses. These solutions offer built-in best practices which help
standardize processing, boost efficiency, and focus businesses on their core
instead of the time consuming paperwork that surrounds their core.
Standardization
is becoming essential to create efficiencies in business process. As my beloved
marketing prof repeatedly broadcasted, "KISS, Keep It Simple Stupid"
in other words don't get caught up in the complex when there are proven simple
ways to process your ap.
Posted by Jarrod Levitan on Tue, Jan 27, 2009
For the 2nd consecutive year Bean has been selected as an Emerging Rocket in the Ready to Rocket technology list.
Feels great to be amongst similar companies positioned to capitalize on the current technology growth trends.
Congrats to all!
Click here to find out about Ready to Rocket