Asking the right questions
Recently, we've been sharing insights from our whitepaper, "Uncovering the REal Value of ERP for Midsized Companies." We've discussed the benefits of eliminating paper from the financial process and how to leverage portal technology to ease communications with vendors and customers, but we've found that when determining whether to implement accounts payable/accounts receivable technology, executives best serve their organizations by asking the following questions:
- What is the company's current cost to process an invoice? How long does it take and what is the dollar value of the man-hours required? Studies show that this cost will be drastically reduced with an automated AP/AR solution.
- How often does the company miss out on early payment discounts? Collecting these discounts actually can make the accounts payable unit a revenue generator.
- How much time does AP spend answering vendor inquiries? With an automated process, staff can immediately determine where in the approval process an invoice is and offer a prompt response. With a portal, vendors can answer many of their questions themselves.
- Will automating AR improve cash flow as a result of implementing workflow procedures or bank wire transfers in place of checks? Will the company get paid more promptly?
By taking an honest look at their organization's existing AP/AR process and asking the tough questions, executives are best positioned to make an informed and valuable decision. Download our latest whitepaper here to learn more about how to determine an organization's technology needs.
is this possible for newbies also?
keep posting such an interesting articles.