Posted by Francis Hart on Mon, Aug 09, 2010
Make sure to mark your calendars to attend the next Bean Services webinar to be held on Tuesday, August 24.
In this session we will discuss;
• Beanbills integration with Yardi
• How we are helping Property Management companies go paperless with Accounts Payable Automation
• Why it won’t cost that much and it’s easier than you think
Date: Tuesday, August 24, 2010
Time: 11:00 AM - 12:00 PM PDT
Register for the Webinar here: http://tinyurl.com/32cmvaa
Posted by Catherine Dahl on Thu, Jul 22, 2010
Has this happened to you or someone you know? Of course if you aren’t an accountant you might not see the humour in there! But then you would also not be reading this either!
Anyway, this kind of thing is more common than you might think. Paper causes problems; they can get lost, burnt, wet, ripped – you name it - paper is easily destructible. And we people make mistakes. So is there a system and a way to reduce that human touch and error? YES! AP Automation is here, and solves much of these issues. And to obvious those embarrassing situations, e-pay is here to help. It all starts with electronic purchase orders.
In the “olden days”, companies had to hand write PO’s in triplicate, send off copies to accounting, the supplier and the receiver. Then the product came in and was received and that information had to be send to accounting with another piece of paper and so on a and so on. In fact this system could cost anywhere from $31 per PO to $88 depending on the organizations size (source The Supplier Enablement Benchmark Report - AberdeenGroup KPIs & Metrics Mar, 2006). Even the “best-in-class” spend $28 to produce and process a PO. So once you had spend $50 ordering the item you then spend between $30 and $60 paying for it, in processing costs of manual AP and printed cheque payment. Invoices arrived, were stamped, routed for signature and coding (some never left the supervisors desk!) and manually entered into the accounting software for payment. Then a check is cut and mailed out, if there were no errors made along the way. The average company takes 10 to 25 days to get through this process and is spending far too much on the process.
Stay tuned for more fun demonstrations of AP hazards, there are so many! And think about automation, the paperless, painless way to make the computer work for you for a change!
Posted by Jarrod Levitan on Sat, Jun 19, 2010
I recently read a great blog post called "4 Obstacles to Starting and Completing Challenging Projects" by Amber Singelton Riviere posted on http://www.webworkerdaily.com
This article relates very much to AP Automation, as going paperless and streamlining your AP is a project. And a change. It involves many people in your organization. However the benefits of the change are so obvious and become ever more glaringly so when you look at the facts. Organizations are saving left, right and centre. The benefits are abundant. So why is everyone not doing it?
Most of us shy away from challenges like taking on a new project. We procrastinate or quite halfway. There are so many obstacles that get in the way, ultimately most of them are self fulfilling if you let them.
Inspired by from Amber's post, where I list her thoughts and include my own below. Here are the 4 obstacles to overcome when initiating an AP Automation project.
Obstacle #1: Fear
Whether we want to acknowledge it or not, fear (of success and failure, of ticking people off, of looking stupid, etc.) is debilitating. A lot of times, it's easier to just keep our heads down, avoid eye contact, and not raise our hands (even when we know the answer). We ask ourselves:
- "What if it doesn't work?"
- "What if it gets me fired?"
- "What if I do this, spend a lot of time/money/energy, and it gets me nowhere?"
Fear is always going to be present, but nine times out of ten, the thing we fear doesn't even eventuate. Yet we still let it hold us back, even though we know it's not likely to occur.
When it comes to AP Automation, we fear changing the way we do things today. Disturbing the peace. Ultimately the way we are doing things today is SO manual and inefficient, and when we look back in 10 years from now, it will be retarded. Our kids will be laughing at us, saying "you used do what with paper?". When making change there are always a few hot coals to walk on. Under the worst case scenario you can always go back to the way you were doing things before.
Obstacle #2: Avoidance
More often than not, we know what we need to do, yet we make excuses about why we can't or haven't made progress. Maybe we need to get that new marketing strategy off the ground, maybe we need to start that new business, or maybe we need to write that e-book. Whatever the case, we don't get it done or don't even get it started and instead say things, like:
- "I would have started it, but I've just been so busy at home."
- "I've been meaning to finish that, but I've been swamped lately."
- "I got sick, then the kids were off a week, then my in-laws came to visit, and I just haven't had the time."
We convince ourselves that our complete avoidance of getting things done is caused by legitimate delays and distractions, because they are legitimate. The question is, how badly do we want to complete that big project/challenge? For example, how much do we really want to get our businesses off the ground, or how much do we really want to see them succeed?
Everyone wants electronic documents. Unless you're a luddite and don't believe in email or computers, the benefits are enormously obvious. So why aren't you doing anything about it? This is often the most common delay with AP Automation, the excuse that something else has to get done. Sure, there are more important things, but to Controllers, CFO's and financial executives out there what's more important than knowing what's going one with every transaction in the business at anytime. Who has it, where its been, where's it going. And who's doing their job and who is not. AP Automation presents that operational visibility where managing your workforce with measured facts is an undeniably powerful administration tool.
Obstacle #3: Motivation (Or Lack of It)
I think a lot of times, we say we want something because maybe we should want it (or think we should want it). Maybe we say, "I want my business to make more money," but in reality, we're pretty comfortable where we are, and even if we're not completely comfortable, the discomfort is not so overwhelming to make us want to put out the extra effort to effect change in our situation.
If there is no real motivation to do something, we have to admit it, own it, and say, "I don't even want that," and so, it's not necessary to put out all that effort to complete some arbitrary project or challenge. If we can't at least get to the place where we can accept our lack of motivation, then there's this feeling of obligation or guilt that constantly nags at us.
If your organization is happy with traditional paper pushing, documents getting lost, approvals taking forever and lack of transparency, then you have no motivation to change. And we truly wish you all the best with that.
Obstacle #4: No Map
Sometimes we'd do what we needed to do, if only we knew where to start or how to get it done. Especially in business, there are times when we walk around clueless and have to figure things out as we go, and that leads back to the first obstacle. If we don't know what we're doing, how can we get people to believe in us, and how do we avoid looking stupid when people figure out that we don't know what we're doing?
Seth Godin talks about working without a map in his book "Linchpin: Are You Indispensable?", and discusses about how we have to be OK with working without a map and just get used to not knowing our way around. If there was a map, everyone else would be following it, and then the journey and destination would probably not be as worthwhile.
It can be hard to take on big projects and challenges and even harder to actually complete them, but by identifying the root cause of our hesitation or procrastination, we'll be much more likely to tackle those big challenges and get things done.
Every organization is different. Every person is different. Thank goodness for that! The same applies in accounts payable. All organisation process their documents with slight differences. However there are major overriding themes to processesing vendor invoices like: Most of them arrive on paper. They need to be coded or allocated to an account, job cost or item. They need to be approved and, for better or worse, they need to be paid. By connecting those main themes into a flexible online business process and workflow, that caters to most scenario's, you can find your way around without map.
What are some of your obstacles to automating your AP? What's holding you back from taking steps to go paperless?
Posted by Catherine Dahl on Tue, Apr 20, 2010
Further to the discussion on Accounts Payable processing costs, we thought you might want to know what gets in the way of automation. Paper AP is the necessary evil in many organizations and change is harder than it seems.
Some might not trust the digital image concept, others like to "feel it" in their hands and yet others have disbelief around the real costs of their manual system versus automation and the potential savings. It is true that reducing the overall costs from $37 to $4 is quantifiable but are those savings really coming off the bottom line and what needs to happen to achieve that? Yes absolutely, opportunity costs and labour costs are real.
How can an organization find its way to embrace the future rather than fear it?
In the last 35 years, computers changed accounting dramatically, gone was the way of the hand written ledger and its manual posting. If any accountant heard of a company NOT using computerized accounting software today, they would assume their clients were in the dark ages! But how did that change occur? To trust the DOS based systems of those early days, must have been very difficult for many. Nevertheless, they adopted and adapted to the faster easier way. Let machines do the repeated work that is mindless.
Mo Kelly, from Rockwall Computers says it well in his blog; http://www.accountingsoftware411.com/Press/PressDocView.aspx?docid=11038
"The big changes in accounting seemed to happen when we changed platforms. Major changes happened when we went from paper to computer. Another major change was from mainframe computers to PC's. Then the next big change was from text based user interfaces to graphic user interfaces. Everyone says that someday we will no longer have software to load on our computers. We will only have browsers and servers. That will be a major platform change.
The motivating factor for changing platforms has been to take advantage of new ways to integrate software. The one concept that is responsible for 90% of the time saved with computers? - Integration.
I honestly believe that we are seeing the final revolution in accounting software. Now accounting packages can grow endlessly and never be obsolete. Object oriented software allows us to reuse software for other applications. Development takes less time. There will never again be a need to create new software because of a platform change. Web based software can be integrated with any process anywhere in the world. How can any new concept compete, especially since it is free?
What does this revolution mean to you? If your company is not ready to get rid of an old, obsolete, client-server, proprietary software package, you may experience similar problems to those in the 80's that claimed they did not need a computer in their business. That is what happens in a revolution."
Well, this holds true for automation of AP workflow too. We have entered a new century with a new way to do this work with much less effort and the mindless tasks and delays that go with paper should be gone. The same things that must have interfered with the adoption of modern accounting software (sadly, I am old enough to say I used the one-write system!) are effecting AP automation adoption today. Innovative thinking controllers will lead the way and then the rest will fall or follow.
Accounting went relatively unchanged from the time of the Egyptians until the invention of the computer and its realistic application in the 1970's. Now software applications are moving to the web.
The ability (or inability) to implement change is a company's best asset or worse enemy. Early adopters of technology will be the pack to the pot of gold. This is true for AP automation. Money is wasted every day on the paper way. Organizations need to go back in time to remember what was like before computers, and how much time was wasted on manual systems.