REDEFINING AP: YOUR ROLE AS THE FINANCIAL STRATEGIST

Henry Ijams

AvidXchange, Inc.

hijams@avidxchange.com

AGENDA

Coming Changes in Finance

What it Means for You

4 Tips to a Perfect P2P Career

WHAT IS YOUR ROLE IN THE COMING CHANGES?

It’s about YOU!

RESEARCH AND ADVISORY SERVICES FOR FINANCIAL STRATEGISTS

Purchase-to-Pay Research, Tools and Education

NavigatorTM Solution Ratings and Reviews

PerfectMatchAPTM Solution Diagnostic

Process Reviews, Assessments and RFPs

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HENRY IJAMS VP of Supplier Solutions at AvidXchange

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ABOUT ME

WHAT DOES YOUR WORLD LOOK LIKE?

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Finance Office

WHAT IT MIGHT LOOK LIKE

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AvidXchange Revolutionizes Business Payments

Our goal: To Eliminate enough paper checks to circle the globe.

QUESTIONS TO PONDER…

What are you doing to simplify the AP process?

How are you preparing for the coming changes?

How can you future proof your career?

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YOUR PATH TO PERFECTION

Common Success Factors Among AP Innovators

Where do you stand on the path to AP innovation?

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PayStream Advisors. Inc.

BASIC AUTOMATION STRATEGY

Centralize Invoice Receipt

Paperless invoices

Electronic Invoicing – via network or portal

Scanning for mailed and email invoices

Streamline approval workflow

ePayments

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INNOVATORS AP PROCESS

Cost Savings, Improvements in Customer Care, Supplier On-time Payment

3rd Party Mail/ Scanning

Electronic Invoicing

Invoice Receipt

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Automated Data Entry

Electronic Invoicing

Invoice Processing

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Automated Workflow & Matching

Invoice Approval

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ePayments via ACH or Card

Payment

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THE FINANCIAL STRATEGIST

Finance Finance is the study of how to allocate assets

Finance is fundamentally a forward looking and concerned with future values

Finance Accounting is the

communication of financial information

Accounting is fundamentally backward-looking

Accounting

CONTROL TRANSACTIONS AT THE POINT OF NEED

Cost Savings, Improvements in Customer Care,

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More Clients, Higher Revenues, Increase Profitability

Transactions are moving away from looking backwards

What is YOUR role in the coming changes?

THE FUTURE OF P2P IS ABOUT PERFECTION

Happy Customers

Less Paper & More Business

Touchless Transactions

High First-Pass Processing

Engaged AP/P2P Staff

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YOUR CUSTOMERS

Department Managers

Suppliers Central Purchasing

Organizations who think about their process from the perspective of “the customer” are more successful at transforming…

and achieving Perfect AP

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What are the Innovators doing?

October 31, 2016

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ARE YOU GETTING THE GREATEST VALUE OUT OF PAYMENTS?

Invoice Receipt

3rd Party Mail/Scanning

Electronic Invoicing LIMITED PAYMENT

STRATEGY

OPTIMIZED PAYMENT

STRATEGY Checks

ACH

Wire

Checks

P Card

ACH

Virtual Accounts

Dynamic Discounting

P2P INVASION

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• Driverless truck made beer delivery last week in Colorado

• 120 Mile Run with no manual intervention by the operator

Have you adopted cloud-based accounting?

We have adopted a web-based accounting sysem

We’re investigating

Never

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POLL:

WHAT IT COULD LOOK LIKE

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WHAT ARE YOUR GOALS FOR AP?

Paperless? Efficiency? Support Growth?

How are you going to achieve your goals?

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SEISMIC SHIFT GOING ON IN THE P2P INDUSTRY

Explosion of new solutions

Cloud based accounting

3rd Party Partnerships

Manage processes, not paper, or people

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Hero’s can’t always carry the load

CHANGING THE WAY WE DO BUSINESS

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4 TIPS FOR A PERFECT P2P CAREER

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Become an Expert in

Processes, not Processing

October 31, 2016

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What is an Optimized Payment

Touchless

Lowest cost

Satisfies the needs of the supplier

Three Steps

1. Evaluate payment mix

2. Uncover payment opportunity

3. Execute plan to close opportunity gap

WHAT IS AN OPTIMIZED PAYMENT STRATEGY?

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Develop Goals &

Success Measures

WHAT TO MEASURE?

Use these 4 steps:

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Measure your current process; establish a baseline

What’s broken? Identify specific goals for improvement (SMART Goals)

Secure the resources needed to achieve outlined goals

Measure, and if necessary, make adjustments to ensure achievements of your goals

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YOUR PATH TO TRUE TOUCHLESS

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Benchmarking Items for AP Process Improvement

Metric Novices

Average processing time from invoice receipt to approval

45 days

Average processing cost per invoice (combination of paper and electronic)

$12.26

Percentage of invoices received electronically

3%

Percentage of invoice terms discounts captured

18%

Mainstream Innovators

23 days 5 days

$6.86 $2.67

9% 32%

40% 75%

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Engage

Your Customers

Approvers & Suppliers

ENGAGE YOUR CUSTOMERS – INTERNAL USERS

What is your customer satisfaction rating for AP?

Survey your customer to find out

GetFeedback and Survey Monkey are easy to use

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ENGAGE YOUR CUSTOMERS - VENDORS

What do vendors need?

Q. Did you get their invoice?

Q. When they will get paid?

The culture of Now!

A. Self service – just tell them where to get answers

They will get it on their own

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BECOME THE CUSTOMER OF CHOICE

Top Reasons to maximize relations with vendors1 Greater support & value

Improved forecast & scheduling

More willing to invest in future opportunities

Allocate best resources and expend better efforts

Provide support beyond contractual expectations

1. Gallup: http://www.gallup.com/businessjournal/180275/become-customer-choice-suppliers.aspx

PURPOSE OF SUPPLIER NETWORK MANAGEMENT PLATFORMS

Provide 24/7 access to transaction data.

Support document sharing.

Enable communication and collaboration.

Reduce risk of supplier fraud.

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© PayStream Advisors 2015

Supplier Network Management Report

Become the Customer of Choice

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Become a Leader

Lesson 1 : Lead

Managers muddle - leaders inspire. Leaders are people who inspire with clear vision of how things can be done better.

Lesson 2 : Manage Less

“We are constantly amazed by how much people will do when they are not told what to do by management.”

Lesson 3 : Energize Others Genuine leadership comes from the quality of your vision and your ability to spark others to

extraordinary performance. Getting staff excited about their work is the key to being a great business leader.

Lesson 4: Have Fun

Fun must be a big element in your business strategy.

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AVIDXCHANGE OFFERS

• Eliminate manual tasks like opening mail and data entry

• Reduce AP process cycle time • Gain 24/7 visibility into invoice approval status and

cash flow • Reduce processing costs by 60 percent or more

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16 Year History

5,500 + Customers

300,000 + Vendors in the Network

98% Customer Retention

800 + AvidXchange Team Members

Offices: North Carolina, Utah, New Jersey, and Texas

THE AVIDXCHANGE STORY

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THE AVIDXCHANGE STORY

QUESTIONS?

What’d you think about this session?

hijams@avidxchange.com

©2016 PROPRIETARY AND CONFIDENTIAL 44

Henry Ijams