Let’s start by fast-forwarding to January 2022 (hard to believe it’s already just 4 months away, right?). You’re at a gathering, hopefully with lots of people that don’t have COVID. Midnight hits, the champagne flows, and the alcohol-fueled resolutions start coming hard and fast. In spite of being tipsy, more than a few people every year seem to remember how much they want to get in shape. So they plunk down the payments for a gym, they go for a week, and then they never go back.
During that week of extreme productivity, you’re pretty likely to hear from at least one person on how sore they were just from doing simple exercises like running or jogging. That’s sort of the point of today’s post. Even when you have a relatively simple task in front of you, it’s still going to take some significant adjustment if you haven’t done it in a really long time. For example, during the pandemic, many of us got used to working at home and slower speeds of business. Those of you who run your own business probably got used to slower productivity, too.
Now that business and consumer demand have picked up considerably since then, we’re all seeing just how much adjusting people need to do as they go back to the workplace or figure out a new balance between home and work. This time right now is the perfect opportunity for you to get ahead of your competition via automation because your technology doesn’t need to make time-consuming social adjustments. From a business perspective, this pandemic has shown us why automation really does keep things “business as usual” when the rest of the world is recovering.
Let’s look at each of those and think about how to use this information to your advantage:
Complacency and resistance are stopping AP automation
Digital payments are up, but full automation is not
Business-to-consumer processes are more automated now, but business-to-business processes are not
Most businesses want to automate right now but are struggling to gain momentum
Suppliers are having a huge impact on showing why AP automation is critical
Don’t Get Comfortable
The old cliche goes, “If it ain’t broke, don’t fix it.” That’s good advice to follow in most cases. However, in the business world, there’s always a premium placed on innovation. Businesses that can innovate stay open for a long time. Businesses that don’t innovate may have short-term success but little to say for extended growth. Don’t be afraid to spend money now to save lots more later on.
A Good Start On Payments
If you’re already digitizing payments or have begun that process, you’re ahead of many companies at the moment. If you want to get further ahead, though, automate the entire AP process. That includes the steps of invoice capture, payment, and searching for inefficiencies in your processes.
Think About Fellow Businesses, Too
Automating the process when dealing with customers is an excellent start. If you want to be a long-term player, automate those same processes when you have business-to-business transactions, too. That’s probably one of the best ways to maintain your status as an innovator.
Identify The Obstacles
Sometimes, obstacles are internal. You could have reluctant employees or perhaps even your own apprehension. Those issues are easier to address because you can control how much information you obtain on something new, like automation. The external obstacles are the hard ones, though. Sometimes, suppliers and vendors just don’t accept digital payments right now. If you have good relationships with them, a simple nudge might be all it takes. If those suppliers and vendors have no interest in going digital, they’ll have questions to answer if you end up going in a different direction with other suppliers and vendors that are more up-to-date.
Suppliers Are Showing The Way
Payments to suppliers are up because consumer demand is up. In many cases, the influx of orders is way beyond the stress capacity of your AP employees even prior to the pandemic. All of these extra interactions with suppliers are showing why automation is the best way to keep up with the world right now.
Reach out to us and let us conduct an AP health check to give you the most specific spots that need your attention. Keep us updated on your progress on our social media pages, and keep checking our blog for more info.
We get it. Change can generate caution. Sometimes big change even results in fear. No one wants that, especially when you’re trying to manage lots of different employees with different styles who bring different benefits to your business.
Time is a limited quantity, though. When we bring in change, we know that it really matters how we deliver the message to those looking for strong leadership. Even if you have a company full of eager employees that are all-in on automation, you still need to make sure that you set them up for success. Positive attitudes only go so far. Execution matters.
That’s where we come in. We want to make sure you deliver the type of training that can get your employees off and running in the most efficient way right from the start. To do that, we have our specialized AP Automation Health Check.
Our health check is usually a 3-day process designed to give you a comprehensive report that can help maximize your potential return on investment into AP automation software.
Day 1 We start out by gaining a deeper understanding of your company, including your AP invoice types and process flows. We need this information because it helps us show you how specific features of AP automation software yields immediate benefits. Think of this day as a focus on the big picture. When you develop a plan, you need to know the end goal first. You can’t budget time and resources appropriately when you don’t know what it all leads to. Day 1 is where we start big and then figure out what the dream looks like.
Day 2 On this day, it’s critical for us to meet with your team and determine how their talents can be maximized via automation. We consider all of the stages of the payment process, which means we meet with just about any stakeholder who’s involved at any stage of payment. While we may identify inefficiencies throughout this health check, we’re doing so with the intent of using software to fix them.
Day 3 As we wrap up the health check, we use the final day to focus on cross-functional team discussions. This stage gives us the chance to see how payment processes look within your business as a whole. It’s usually the last piece of information we need to offer you a set of observations and recommendations on how to start your automation transition. Overall, we want to give you a comprehensive strategy with short fixes, minor projects, and major undertakings that will result in lots of long-term success due to automation.
In addition, we also have an extensive set of tools to help you assess your obstacles and give you the best information on how to do an efficient transition to a fully automated AP experience. Reach out to us and let us conduct an AP health check to give you the most specific spots that need your attention. Keep us updated on your progress on our social media pages, and keep checking our blog for more info.
Welcome to the club! We knew you’d come around to automation at some point.
There’s just no reason not to with the current state of how businesses operate in today’s world.
Make no mistake about it, this decision is huge. And we want to make sure we point you in the right direction the rest of the way because the big decision you just made opens you up to lots of other decisions in the short term.
It’s one of the side effects of growth, right? As your business becomes more successful, it takes on more demands. More demands mean you can’t always operate the same way you used to because the old model isn’t sustainable.
If you go back to our MLB trading deadline metaphor in the previous post, it still applies here. Teams who make those deals to acquire big-name talent for a World Series run now have new demands resulting from new needs. With the talent portion taken care of, the new needs include things like setting up a pitching rotation for the postseason and determining whose contract to extend after the season’s over. In other words, the things most teams aren’t thinking about when the season begins in March (unless you’re the Diamondbacks or Orioles, in which case the season ended in February).
So with that said, today’s post is about preparing you to think about the next set of decisions you’re going to have to make on this road to automation.
Here are the key questions to consider:
What’s the right software for the company?
How quickly can we make payments?
How efficiently can we scan documents and save them?
How much time can we save in transferring info from invoices and receipts to ledgers?
What’s The Best Program?
Spend some time with this one because there are LOTS of choices out there, each with plenty of features that fit some businesses better than others. You can make this decision a little bit easier upfront if you do some organization to your accounting ahead of time. Group your accounts into easily understandable labels. Make sure there’s no confusion about where the money’s coming from and where the money’s going. Then, start looking at software. Take a look at how the programs organize accounts. Find the model that makes the most sense to your AP/AR teams and you. If you find that truly compatible fit, you’ll be able to get constant reminders about which vendors you owe money to and which vendors still need to pay you. You’ll also be able to pull up receipts and invoices at a moment’s notice.
When Can We Pay?
Most software out there has a feature that automates online payment. You’ll often set up the software on your computers and then create accounts in an online portal where the payments actually occur. What makes this feature even niftier is that the online portal and your software can sync up instantly. When you make a payment, the online portal tells the software to deduct from the ledger. Just like that, you saved an employee some very tedious manual work.
Are E-Docs Easier?
When purchasing automation software, it’s worth your while to invest in a good scanner as well. Any invoice, receipt, or another piece of paper from a transaction can be scanned and immediately sent to the program for cataloging. As stated earlier, these programs can be a godsend for organizations. This includes documents you feed to the software, not just the ones you create within the software itself.
Does Info Travel Faster?
Arguably the best benefit of any program is the elimination of manual data entry. But you already knew that because you’ve already made the choice to automate.) Examine this feature carefully when making your decision on software. Depending on how secure you want to be, you can also sync your selection with a cloud-based account to store data online. Doing so prevents much of the duplication that causes headaches under a manual system. Here’s the thing, though: All of this security and ease doesn’t mean anything if you can’t use the software in the way that it’s intended. Study up on ease of use and then think about what it will take to train your departments. A program with lots of bells and whistles but a more difficult interface may not be the best choice. Think about who you are, who your employees are, and what your business wants to be.
So there you have it–your next set of big decisions. These are good decisions to make, though. It’s an exciting time, so embrace it. You’ve just made a decision that’s going to take your business to levels never realized before. Keep us updated on your progress on our social media pages, and keep checking our blog for more info.
Let’s talk about Las Vegas buffets (pre-pandemic, of course).
Depending on which casino you go to, the up-front cost of one admission into a dinner buffet can seem pretty expensive. You’ve already waited in a line that doesn’t move just to get into the actual area. Then, when you get to the register, you’re hit with the sticker shock. For a brief moment, your very rational not-sleep-deprived-at-all mind says, “Is this really worth what I’m paying?”
Then you get inside.
“Sweet mother of foie gras, is all this for ME?!”
Yes. Yes, it is my dear conquistador epicurean. It’s all for you. However much you want, whenever you want it. And if you can’t find something, it’s probably there, anyway.
“You mean I can put hot dogs and lobster on the same plate?” Yes, you can do that.
“A taco, pizza slice, pork chop combination plate?” Yup. That’s in, too.
“You mean ANYTHING?” Ugh, yeah, you’ve got the hang of it.
Okay, let’s leave your inner monologue in the prime rib line and talk about why this experience matters.
Data in business is like a Las Vegas buffet. It’s easier than ever to get lots of different types of data about your business for what is ultimately a small cost upfront (even if it doesn’t look like it). Just recently, a report from a Harvard Business Review Analytic Services Pulse survey showed almost 90% of respondents increasing their amounts of data collection over the past two years.
Once you get that data, though, the trick is figuring out how to use it in such a way that doesn’t bog you down. We want data to work for us, not against us. Like any new venture you put into your business, using data requires you to go into the endeavor with a set of purposes, things you know you want to get out of using data. That’s really the first big hurdle in making data work for you instead of against you.
Here’s how to make data be a team player instead of a diva:
Automate Collection
Customize Reports
Allow Software to Adapt
Get Faster Than Your Competitors
Automate Your Collection Technique
Find an Enterprise Resource Planning (ERP) program out there that specializes in one or more types of data collection that you need. Programs like Workday, Capella, and E-trade all have their pros and cons. Research them and find the or ones which fit your needs best.
Target The Reporting
Pretty much all automation software allows you to customize what you see in reports. Use those programs to add calculations and set up algorithms so that they highlight the key data points you need the most.
Let The Software Learn
Quite a few ERPs come ready to adapt once they start working for you. As the ERPs start creating reports at your request, they begin to learn what to expect at particular times each month. In turn, because the program knows what you’ll be asking for, it’ll automate its functions to match those needs. If you guide the software smartly, the ERP can eventually do a ton of automating at the end of the month and leave you with the small task of locating anomalies–an incredible timesaver.
Get Ahead Of The Competition
So that survey we mentioned earlier? It also showed 77% of respondents relied on manual processes to collect and use data. Most of those respondents expressed a clear directive to move to automation within the next three years. In other words, the field is starting to figure it out–manual processing is slow, cumbersome, and inefficient. Every day you spend on manual processes means another day you lose ground to a company that automates everything. When you consider the amount of data you need to stay competitive in the first place, it quickly becomes clear that no one on this planet can process all that data manually. The computers are there to help.
The old saying is that you can sometimes have too much of a good thing. Whether it’s food or data, that can be true. Our eyes get so big, and we get so excited that we forget what we’re supposed to do for a hot minute. Then, as we grasp the gravity of what we’re doing, we get intimidated and spooked. But it doesn’t have to be like that all the time.
For business data, knowing how to avoid the inefficient binge can save you extra time and cost on top of the time you’re already losing to manual AP and AR procedures. That’s a big reason why you need to automate ASAP.
Reach out to us if you have questions! We’re ready to help you take the plunge. Let us know how it’s going on our social media pages, and keep checking our blog for more info.
I’m going to give you three totally relatable scenarios. Your job is to figure out a possible theme that links all of them together.
Scenario #1
It’s Summer, and the world is opening up. You’re stepping on a scale for the first time in about two years. The number is not pretty. Time to lose some of that pandemic weight. So, you decide the first investment is in your diet. You go to the store and experience some good ol’ sticker shock at how much more expensive healthy food is now. Nevertheless, you bite the bullet and fork over the cash because you’re committed to the new venture.
Scenario #2
It’s Fall, and fundraising season is in full swing for the many middle and high schoolers in your community. Two members of the local high school marching band show up at your door and make a pitch for a discount card that can be used over and over again with no limit at hundreds of local merchants all over town. The card is a little pricey, but the proceeds go towards the band’s uniforms, instrument maintenance, travel expenses, and competition fees. You buy the card.
Scenario #3
It’s Spring, and the weather is finally warming up. You see an ad for your local amusement park. They’re offering a deal for a season-long pass. The price of the pass is equivalent to two single-day visits. Given the cost of a day at an amusement park in 2021, you’re reminded of the extra expenses that usually show up along with tickets (e.g., food, water, sunscreen, etc.). Nevertheless, the roller coaster fiend in you will not be denied. You tell the park, “Take my money.”
Hour glass on calendar concept for time slipping away for important appointment date, schedule and deadline
Okay, again, what’s a possible link that binds these scenarios together? (There’s probably more than one right answer.)
One answer you might have thought of is the concept of paying a high price in the short term for likely long-term benefits.
In all three of these scenarios, you’re paying a decent chunk of change upfront for things that will ultimately pay for themselves if you keep using the products. Healthy food is expensive, but you’re saving money on doctor bills down the road (and you also probably just feel a lot better in the long term, too). The discount card eats at your wallet now, but it pays for itself if you’re taking 10% and 20% markdowns at stores you go to all the time. The season pass has already paid for itself once you step foot in the amusement park for the third time. Simply put, you’re paying more money upfront to make or save money down the road. You’re playing the long game.
That’s exactly the mindset you’re supposed to take when you automate your AP department. Today’s post is going to apply that lens to the AP automation process. We’re going to look at three long-term benefits of paying good money upfront for AP automation software. While you may be put off initially by AP automation software prices, keep in mind the money you’re making or saving down the road.
Benefit #1: Maximizing Employee Value
Manual handling of invoices and payment is inefficient and ridden with errors. On top of that, the processing of payment often takes far too long to meet the deadlines that vendors impose on you when they send an invoice. AP automation software speeds up the entire process, eliminates most of the errors, and lets your employees focus on the rare exceptions that get past the software. Your employees can also spend more time identifying your best suppliers to work with, which saves you lots of headaches down the road.
Benefit #2: Improved Company Morale
It is very rare for employees to get upset when a company takes away mundane, monotonous tasks from their daily load. These tasks often add little value or satisfaction to an employee’s sense of self-worth. Employees with low self-worth perform worse. By getting rid of the mundane, you can give your employees the challenging, engaging tasks that allow them to demonstrate their true value to the company. That makes everyone happy.
Benefit #3: Earlier Payments=More Savings
Manual payment of invoices can cost up to $17 for every single invoice. That adds up! To make matters worse, lots of those processes finish past a vendor’s deadline, which then subjects you to late fees and more lost money. Not great. Automating AP guarantees payments are processed well in advance of deadlines, eliminating late fees. Additionally, your cost per invoice is going to decrease rapidly because you’re often paying for the software upfront. Every time you save money on an invoice, you’re offsetting what you paid for the software in the first place.
It may look expensive at first, but AP automation is truly a winner in the long run. Bite the bullet now, then sit back, and watch the savings pile up over the coming months. In no time, you’ll be swimming in cash that would’ve seemed unreachable a year ago. Share your stories of how much money AP automation has saved you on our social media pages, and keep checking our blog for more info.
During that week of extreme productivity, you’re pretty likely to hear from at least one person on how sore they were just from doing simple exercises like running or jogging. That’s sort of the point of today’s post. Even when you have a relatively simple task in front of you, it’s still going to take some significant adjustment if you haven’t done it in a really long time. For example, during the pandemic, many of us got used to working at home and slower speeds of business. Those of you who run your own business probably got used to slower productivity, too.
