3 Ways to Audit Your AP Performance
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Large or small, companies are looking at productivity as the true measure of success. If you can’t measure it, you can’t manage it! So how do you measure success in the AP department? In this presentation, we discuss three ways to audit your AP department’s performance, and give you the tools to transform it from a back-office cost center into a front-line process that can actually drive profitability.
Transcript of 3 Ways to Audit Your AP Performance
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A key business process that impacts an organization’s cash flow and bottom line
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A key business process that impacts an organization’s cash flow and bottom line
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Paper-based transactions create costly bottlenecks in AP process that affect bottom line earnings AP have been categorized as one of the most paper burdened process
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Do you get any early payment discounts? Is your AP centralized? --In many cases, suppliers send invoices to buyers department and not to the AP department. Are there bottlenecks in your AP process?
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SEND THESE LINKS OUT TO THE ATTENDEES WHEN THIS SLIDE IS SHOWN: http://info.corcentric.com/rs/corcentric/images/CC_Accelerator_Infographic_2-2.pdf http://info.corcentric.com/rs/corcentric/images/ProcessingPerformanceQuestionnaire.pdf
Source: Aberdeen Group 2012
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How much are your invoices actually costing you?
Source: Aberdeen Group 2012
Source: Aberdeen Group 2012
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SEND THIS LINK OUT TO THE ATTENDEES WHEN THIS SLIDE IS SHOWN: � http://info.corcentric.com/rs/corcentric/images/CC_Accelerator_Infographic_1-2.PDF
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-Get complete visibility into invoice status from origination to payment -Reduce time, errors, and costs associated with paper-based invoice processing -Move from transaction processing to transaction analysis -Simplify and accelerate review and approval processes -eliminate lost invoices and late payments --increase employee productivity
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Allows managers to: monitor volume of invoices processed by FTE per day, Average to process an invoice
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Discounts typically range from 1.5 to 3% Best in class companies who have deployed AP automation capture over 90% of invoices offered with discounted terms Source: Aberdeen Group, Network Economy, May 2012
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Are you missing out on any early payment discounts? A large fortune 100 retailer saved a total of $600k! (The Children’s Place example) People are often think discounts are available only to very largest companies, such as Wal-Mart or GE, but medium and small businesses can benefit as well
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Avon example from Rob
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Visibility allows for faster, more accurate audits, better enabling a company to meet internal control requirements
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AP is the last line of defense before money leaves the company
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Being financial documents, invoices are subject to compliance regulations such as Sarbanes Oxley. It’s important that these documents are captured and archived using a well documented and consistent process Automation provides a complete audit trail for your AP department to comply with Sarbanes Oxley Automation ensure important data is recorded, validated, and can be easily audited.
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AP used to be managed as a cost center--doing back-office administrative tasks, such as invoices processing a strategic asset–more business critical management activities-–to achieve this AP departments need to automate as much of the business process as they can
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Assess where you are and where you want to be in terms of AP automation Set clear goal and time frames to for moving to each of the next levels. Keep up to date on new and merging technologies as there will be additional levels that you will want to move up to in the future Understand the strengths and weaknesses of your current processes
To see a live demo of COR360, visit corcentric.com or call 703.962.9474
