If you're thinking to yourself, "Maybe there is a better way". Then take 2 minutes to watch our overview video where we explain ways to free up your AP Staff's time and in more ways than you may have thought about.

Of course this answer will vary company by company, industry by industry and person by person. The fact of the matter is that it does take quite a bit or time to enter each and every supplier invoice into the ERP system and some are better and faster at this than others.

If you look around any accounts payable department you are likely to see file cabinets, bankers boxes and stacks of paper invoices all in vary degrees of completion. One of the most tedious, time-consuming and error-prone steps and expensive steps in the accounts payable process is manually keying every single invoice into the ERP system for payment processing.

Now a lot has already happened prior to this step (routing, coding, approvals, PO matching, exception processing, variances, etc), but for the moment lets focus on invoice entry.

It's now time to enter each invoice. So the AP Staff roll up their sleeves and starting typing away, click, click, click, vendor name, vendor number, invoice number, invoice date, purchase order number, gross amount, freight, taxes and amount due. This could literally be hundreds of keystrokes per invoice!

Multiply this by the number of invoices that get entered each day as compared to the amount of time spent by your AP Staff manually keying every single invoice and you can start to see where this very tedious process can quickly become very, very expensive!

There have been a number of studies performed by Aberdeen Group, PayStream Advisors and PYMNTS about how much time it takes for AP Staff to manually process and key supplier invoices on a daily basis and the results are staggering. On average, AP Staff spend two-thirds of their day doing data entry! In an 8 hour day, that is 5.5 hours a day spent typing on a keyboard.

Not only is this not a good use of time. This is incredibly costly and expensive. Your AP Staff are trained, skilled and experienced in finance related matters, yet their skills are under utilized and they become data entry clerks.

In this day and age, organizations are seeing high turnover rates, struggling staffing shortages, hiring bottlenecks and continual rising costs. There are ways to offset these conditions and make way for process improvements that can be embraced by all.

How much time does it take you AP Staff to print or save invoices ever day? What if I could show you that we could completely eliminate this step from your AP Staff and free up this time so that they can focus on more important tasks related to the financial well being of your organization!

Is manual data entry making the best use of your AP Staff's time?

There is a better more efficient and cost efficient way!

Of course this answer will vary, company by company, industry by industry and person by person. The fact of the matter is that it does take some time to print out the supplier invoices. Some are better at this than others.

If we look at the methods used by suppliers as a way to submit their invoices for payment processing, emailing is high on the list. In most cases an accounts payable department is receiving anywhere from 70% to 90% of invoices via email with the average being around 80%.

This translates into a lot of clicking to open email messages, opening each attachment and deciding if it should be printed, or not. Maybe you staff got a but creative and rather than clicking the print button on each and every attachment, they open the attached invoice and save them into folders and rename each file so that that they can make sense out the long list of files that are collecting every day.

In the end, no matter whether your AP Staff print out each invoice or save each invoice file or your network somewhere, this is a a slow, tedious, and cumbersome process which can quickly become riddled with problems.

How much time does it take you AP Staff to print or save invoices ever day? What if I could show you that we could completely eliminate this step from your AP Staff and free up this time so that they can focus on more important tasks related to the financial well being of your organization!

Is this the best use of their time?

True Story. The names have been changed to protect the innocent.

I had been calling on Mary who is the AP Manager of a mid-sized manufacturing company for years, 5 years to be exact The reason for calling Mary was of course to introduce our approach to accounts payable process improvements and more specifically, automation as a way to streamline processes, increase efficiencies and reduce overall costs.

Mary had been at this company for many years and she just wasn't interested.

During each call I would ask a few basic questions about how supplier invoices got processed, I'd try to understand where the bottlenecks and issues were to see if we could help improve things.

There would always be some reluctance to answer my questions, or a reason why they didn't need any help in accounts payable. The usual responses would be we're old fashioned, our people are faster or its nice to have or too expensive.

Then one day, I got a phone call. I was shocked. It was Mary.

"We've got a new CFO and they're interested in AP Automation".

I said, that's great! But I thought you didn't need any help. Mary admitted to me that it wasn't that they didn't need it, she just didn't understand it and was embarrassed to tell me this.

She was afraid that something new like this might make her look weak, or that she might be looked at as the bad guy (or gal) for bringing in new processes, or worse, would she need to let someone on her team go if this actually worked.

The new CFO got what they wanted, which was process efficiency in finance and low and behold Mary's AP Department became so efficient that this opened up some doors for promotions! Mary was eventually promoted to Corporate Controller and much of this was attributed to the efficiency gains that we're realized once she embraced AP Automation.

In the end, Mary's fears were preventing her for making progress. In the end it all worked out and the AP team couldn't have been happier and wished she had done this sooner.

Don't let fear paralyze you from making decisions and moving your business or personal life forward.

Healthcare organizations face different challenges to their counterparts in other sectors. The highly-competitive nature of the industry creates pressure to adopt a lean approach to delivering goods and services to customers. This has led to an increasing emphasis on customer centricity and faster, more robust supply chains. While there tends to be a focus on front-end process improvements, healthcare providers realize that there is also a need to extend these improvements to their back-end processes, particularly in accounts payable (AP) and procurement.

AP refers to the entire process by which organizations pay for goods and services, from the receipt of the goods to the processing and payment of the vendor invoice. In an effort to reduce costs and optimize efficiency, leading organizations are implementing AP automation software and streamlining their back office functions.

This white paper serves as a guide for finance leaders on the drivers for implementing AP automation and the value it adds to the Healthcare supply chain. It summarizes the issues that healthcare providers are faced with, and the benefits that AP automation has delivered to a range of organizations, including, reduced costs, increased visibility, improved efficiency in AP processes, and enhanced vendor management. The paper highlights the ways in which AP automation can be integrated with existing ERP, procurement, and supply chain systems, and ensure tangible results including:

Organizations in the Healthcare sector have a faster supply chain, and there are greater demands to purchase and deliver goods and services quicker and in innovative ways. As businesses increasingly focus on meeting the needs of the customer in order to outperform competitors, many healthcare organizations are putting competitive pressures on providers to improve processes in the front and back ends of the business. The use of e-commerce, in particular, and the demand for ever shorter delivery times has forced manufacturers and distributors to shift focus from traditional to a much faster turnaround on orders and deliveries. For this tilt to be possible, supply chains must be fast and reliable, and back end processes must be agile and automated.

This pressure to improve back end processes to achieve cost reduction and maximum profitability is widely covered in industry research. Forrester research predicts that customer centricity, analytics, and optimization will be key for healthcare providers in order to distinguish themselves from competitors and mitigate the risk of reduced growth. Research confirms that management will fundamentally change the pace of their business, replacing cumbersome, manual processes with automated, agile ones. According to further research, this is a key area of focus for the future: 81% of executives surveyed agreed that operational efficiencies are a priority to improve profitability.

Organizations can gain a competitive edge in the Healthcare sector by allowing finance teams to focus on their core activities. AP automation eliminates the manual tasks of invoice data entry, coding, approval, matching, and payment, allowing operations and finance teams to focus on strategic, high-value work. A dedicated system for automating AP tasks ensures that costs are significantly reduced and spend management is brought under complete control. AP automation can have considerable impact on the bottom line, delivering cost savings as a result of increased transparency over company spend, improved efficiency, reduced costs, and better relationships with vendors.

Healthcare organizations typically utilize industry-specific systems for procurement, particularly for purchasing goods, as this accounts for approximately 80% of total spend and is vital for revenue growth. However, when it comes to goods, including expense items such as marketing, legal fees, utilities, etc., organizations generally do not employ a dedicated system for procurement and AP, and instead rely heavily on manual processes. This results in deficient spend management, a lack of transparency, and poor vendor management, which contributes to inefficient AP processes. AP automation replaces these inefficient processes with structured solutions that enable finance leaders to take control of company spend, increase productivity of their teams, and improve vendor relations.

The Healthcare industry has many industry-specific challenges in purchasing goods and services such as tolerances (allowing an organization to manage under shipments, late shipments, and unit price variations that cause discrepancies between the PO, invoice, and goods receipt), surcharges (for returns or for over handling of goods), and over-receipting (receiving more goods than originally ordered), and individual organizations have additional, bespoke business requirements to meet. AP automation solutions facilitate all these healthcare-specific requirements as well as the standard AP requirements such as duplicate invoice checking, varied payment terms, discount allocations, and VAT calculations. In a manual AP environment. This results in disjointed back-end processes, with a primary focus on goods, and crucially, without one single view over finance operations.

In typical Healthcare environments, the different types of invoices are often separated by different processes or by different systems, or by different AP teams. This separation of processes for PO vs Non-PO spend results in unnecessary complexity, duplication of resources and a lack of visibility of overall spend. Invoices for goods are typically received in e-mail, PDF or paper formats. Procurement of goods is typically managed by industry-specific solutions and while these systems may automate the creation and approval of purchase orders (PO), organizations ultimately rely on manual processes to complete the remaining AP steps including invoice capture, matching, and posting for pay

On the expense side, Healthcare organizations typically do not utilize systems specifically for expense invoices or the associated Non-PO AP tasks, in which case the AP teams are left to manually complete every step from procurement through to payment of invoices. This manual processing is inefficient, slow, and uncontrolled, with a high number of touchpoints which drives up the costs involved in processing an invoice, and increases the risk of human error. This makes it difficult to manage expense spend, which is often non-PO based and can often account for over 20% of total spend. Typical problems that arise with non-trade spend are retrospective approvals, maverick buying, and non-adherence to company spend policies.

In Healthcare environments, it is common for organizations to have large numbers of vendors across global locations. This poses several complex challenges which often are not sufficiently managed by existing ERPs and, as a result, organizations implement further manual processes to handle them. One challenge faced by many healthcare organizations is duplicate invoices and duplicate payments. In AP departments with no automation, manual processing naturally results in human inefficiencies and inconsistent invoice handling processes. From a vendor point of view, there is no visibility over whether or not an invoice has been received, approved, or paid, which often leads to vendors submitting invoices multiple times (by post, EDI or email) in an effort to get paid more quickly. Since there are no reliable ways to detect duplicate invoices in a manual environment, AP teams end up duplicating their effort to process these invoices and in some cases ultimately making duplicate payments which result in commercial implications and require further effort to remedy.

Vendor management is another area where Healthcare organizations often find they struggle. This is due to limitations in the ERP vendor master data and the lack of structured tools within the ERP to efficiently and accurately manage existing vendors and on-board new vendors. Simple requirements, such as ensuring that all vendors are compliant with tax clearances, industry certifications, insurances, and other buyer-specific policies, are typically managed externally from the ERP using offline, manual processes. Likewise, vendor contract renewals and other vendor updates are often handled in a similar manual fashion.

The AP automation solution allows organizations to control buying from approved vendors and management can enforce strict ‘No PO, No Pay’ policies and gain full visibility over what is being purchased. AP automation solutions work seamlessly with multiple ERP systems and provide a single view of the world for AP teams.

Segregated AP teams can be consolidated and the manual paper-based processes and spreadsheets are replaced with structured and controlled systems. This allows the entire AP process to be automated by one solution, eliminating the need for two separate AP processes, and two separate AP teams. The automated processing of invoices enables finance teams to only handle invoices by exception and to prioritize by key criteria such as value, early payment discounts, aging, etc. Reporting and analytics also provide finance leaders with the necessary dashboards to project operational and financial metrics such as processing times, FTE productivity, approver performance, invoice accruals and vendor performance.

Other industry-specific challenges can also be managed. In Healthcare it is not unusual for vendors to send invoices before the goods arrive - often as soon as the goods are ordered - in an effort to expedite the receipt of payment. Situations like this can cause real problems with traditional manual processes. However, with AP automation, invoices are automatically assigned an expected arrival date and are held pending the goods receipt note (GRN). When the GRN is received, the system triggers an automatic 2- or 3-way match, and unless an exception is found it will be automatically approved and routed for payment.

AP automation provides a single system for processing all invoices through a structured workflow with automated matching and built-in approval logic. This ultimately enables the touchless processing of invoices and focuses AP teams on only handling invoices with exceptions.

Invoices can be captured in any format including paper, XML, PDF and EDI, so healthcare providers can accept invoices electronically from sophisticated vendors using XML/EDI or, for other vendors, they can also automate the processing of invoices received by paper, email or PDF or submitted through an online invoicing portal. Vendors receive notifications regarding the status of submitted invoices, providing them with visibility over whether invoices have been received, processed, approved or paid.

AP automation allows for better control over the organization’s cash flow. It equips the AP team with transparency over all vendors, enabling them to consider early payment discounts, and to strategically buy from preferred vendors and schedule payments in order to avail of these discounts. The solution also facilitates multiple languages and currencies, and provides full visibility over pending payments, allowing management to make informed decisions on when to pay invoices without incurring unnecessary charges. Taxes and freights, which are not always accurately accounted for in a manual environment, is fully automated within the AP solution, enabling precise payment and reporting.

The costs incurred in the finance department can be significant. Automating the AP process enables organizations to achieve better employee productivity, increased visibility and control over spend (both trade and non-trade), and significant cost savings at each stage in the AP process. Industry research by PayStream has found that 90% of CFOs that implemented AP automation achieved an average savings of 80% in invoice processing costs.

The cost of manually processing invoices can be significant. Forrester reports that over 97% of invoices are processed manually. The average cost of processing invoices varies, but can amount from $15 up to $45 per invoice.

AP refers to the entire process by which organizations pay for goods and services, from the receipt of the goods to the processing and payment of the vendor invoice. Successful organizations are modernizing their AP processes by automating each of the steps involved. AP automation can be achieved by transforming the following tasks:

Competition between healthcare providers has resulted in greater demands to establish differentiation. In order to get ahead, organizations are making efforts to provide improved healthcare services to people. Considering the emphasis on speedy supply chains and the importance of vendor relationships for success in healthcare have started to improve back end processes in order to increase efficiency and maximize profitability. Leading healthcare organizations have deployed AP automation in order to deliver considerable efficiencies and have achieved faster invoice processing times, reduced invoice processing costs, improved vendor relationships, and lower overheads and labor costs. Automation of AP processes allows for better visibility and control over total spend (both trade and non-trade) which enables finance teams to produce higher value reporting and analysis of operations.

BlueCreek Software is a leading provider of financial process automation and developer of Vision360 Enterprise software. Vision360 replaces inefficient processes with solutions that transform financial processes, reduce costs, and ensure that organizations meet their business and compliance obligations.

BlueCreek’s Vision360 Enterprise solution fully integrates with all major finance systems, and ERP systems including Meditech, SAP, Oracle, JD Edwards, Lawson, MS Dynamics, Sage and many more.