Accounts Payable Automation – Automate Now or Pay Later

Accounts Payable Departments are a critical component to the long-term success of companies in our new “new economy.” With overhead costs being analyzed for every possible savings, Accounts Payable, or AP, is one of the first places that companies can look. Many times, the process is submerged in inefficiencies, and the application of some simple technologies and proven best practices can deliver tremendous results.

Typical AP Processes feature a staff of trained professionals who manage the company’s expenses and invoice processing. Often, this is accomplished using accounting software, such as Quickbooks, SAP, Oracle Financials, Microsoft Dynamics, or any of the hundreds of software packages designed to help manage a companies finances. These software packages, typically referred to as ERP Systems, provide a great level of detail and fantastic functionality to help companies manage the data associated with their transactions, whether they be payables, or receivables.

The real challenge, however, is entering data from paper or PDF-based invoices and managing the three-way match and approval process associated with the AP Lifecycle. Many companies rely on significant human resources to provide manual data entry of invoice data into the ERP System, and this can often result in significant expense for the business. In addition, Manual Data Entry is often followed or preceeded by a detailed approval cycle, where physical paper invoices are passed throughout an organization for review and approval.

These manual steps for AP Processing will often result in overpayments, duplicate payments, and sometimes missed payments, which result in penalty charges imposed by vendors for not meeting the agreed upon terms. In addition, Invoices are often lost or misplaced while being routed through the approval cycle, and hours of time are spent by staff reviewing and approving invoices from paper.

With the addition of some additional technologies and proven best practices, however, organizations can begin to quickly drive down the cost of Accounts Payable. In fact, most companies who invest in an Automated Accounts Payable Solution realize a return on their investment within the first three to six months of use.

Automated Accounts Payable Solutions enable organizations to eliminate the need for manual data entry of information from invoices. Instead, they rely on advanced OCR, or Optical Character Recognition, technologies to accurately identify the key data elements from invoice documents and deliver this information to an ERP System. This eliminates incorrect keying of information, and these systems can even be configured to automatically apply GL Coding for Invoices based on some predefined rules.

In addition to the elimination of Manual Data Entry and reduction of errors, an Automated Accounts Payable Solution provides companies with the tools to electronically route invoices through the approval cycle. This means that instead of receiving a stack of invoices to approve, manager and staff will receive an email notification and use their browser to click to approve or reject the invoices that they need to review. This eliminates lost or misfiled invoices, and also helps to ensure timely response from all participants in the approval lifecycle.

It is critical for senior management to understand that Accounts Payable Automation is not a replacement for an existing ERP or Accounting Software System, but rather a key tool to help enhance the value and reduce the costs of the Accounts Payable Process. AP Automation Solutions also provide the flexibility to work with multiple ERP or Accounting Systems, so they will continue to pay dividends if and when the organization chooses to switch from one software package to another.

In addition to the costs savings derived from an Automated Accounts Payable System during the Invoice Lifecycle, there is another inherent benefit to leveraging this type of system – Compliance. When an organization experiences an audit, these systems will provide a clear trail of approvals, including date and time stamps, to indicate who approved or rejected certain invoices. In addition, copies of these invoices can be retrieved with a few mouse clicks, as opposed to manually poring over stacks of physical files.

Whether your company is faced with challenging economic conditions or not, further exploration of AP Automation may be a key factor in the overall health and profitability of your operation. If you’re not sure where to begin, Many companies who offer these solutions can work with you to provide a detailed Return on Investment (ROI) analysis to target specific costs savings and metrics that can help improve the health of your business.

Michael Thomas is the Director of Solution Development for Digital Storage Solutions, Inc. Digital Solutions, Inc., a privately held company headquartered in Long Island, NY and was founded in 2001. The company provides professional document and content management solutions for small business through enterprise level businesses. For more information, visit http://www.digitalstorageinc.com/accounts-payable.htm

The World is Your Desktop

If you're looking for a very simple clock and weather forecast, this may just be the solution for you. The team over at Opentopia and DIE.net have a real nice map that may just be what you're looking for... Check it out here... http://www.opentopia.com/images/cams/world_sunlight_map_rectangular.jpg

Barstool Economics

This came across my desk today, and I found it interesting, so I thought that I'd share it...

Suppose that every day, ten men go out for beer and the bill for all ten comes to $100. If they paid their bill the way we pay our taxes, it would go something like this:
The first four men (the poorest) would pay nothing.
The fifth would pay $1.
The sixth would pay $3.
The seventh would pay $7.
The eighth would pay $12.
The ninth would pay $18.
The tenth man (the richest ) would pay $59.

So, that’s what they decided to do. The ten men drank in the bar every day and seemed quite happy with the arrangement, until one day, the owner threw them a curve. ‘Since you are all such good customers, he said , ‘I’m going to reduce the cost of your daily beer by $20. Drinks for the ten now cost just $80.
The group still wanted to pay their bill the way we pay our taxes so the first four men were unaffected. They would still drink for free. But what about the other six men - the paying customers? How could they divide the $20 windfall so that everyone would get his ‘fair share?’ They realized that $20 divided by six is $3.33. But if they subtracted that from everybody’s share, then the fifth man and the sixth man would each end up being paid to drink his beer. So, the bar owner suggested that it would be fair to reduce each man’s bill by roughly the same amount, and he proceeded to work out the amounts each should pay.!
And so:
The fifth man, like the first four, now paid nothing (100% savings).
The sixth now paid $2 instead of $3 (33%savings).
The seventh no w paid $5 instead of $7 (28%savings).
The eighth now paid $9 instead of $12 (25% savings).
The ninth now paid $14 instead of $18 (22% savings).
The tenth now paid $49 instead of $59 (16% savings).

Each of the six was better off than before. And the first four continued to drink for free. But once outside the restaurant, the men began to compare their savings.
‘I only got a dollar out of the $20,’declared the sixth man. He pointed to the tenth man,’ but he got $10!’
‘Yeah, that’s right,’ exclaimed the fifth man. ‘I only saved a dollar, too. It’s unfair that he got ten times more than I!’
‘That’s true!!’ shouted the seventh man. ‘Why should he get $10 back when I got only two? The wealthy get all the breaks!’
‘Wait a minute,’ yelled the first four men in unison. ‘We didn’t get anything at all. The system exploits the poor!’
The nine men surrounded the tenth and beat him up.
The next night the tenth man didn’t show up for drinks, so the nine sat down and had beers without him. But when it came time to pay the bill, they discovered something important. They didn’t have enough money between all of them for even half of the bill!
And that, boys and girls, journalists and college professors, is how our tax system works. The people who pay the highest taxes get the most benefit from a tax reduction. Tax them too much, attack them for being wealthy, and they just may not show up anymore. In fact, they might start drinking overseas where the atmosphere is somewhat friendlier.

David R. Kamerschen, Ph.D.
Professor of Economics, University of Georgia

So I go to vote this morning and I'm standing in the booth trying to make up my mind... It's almost a toss-up for me...

I want to vote for Obama.

I don't know if I can elect a guy who's middle name is Hussein...

Then it comes to me.

I hear the soundbyte from Monday Night Football...

John McCain wants to eliminate Performance Enhancing Drugs... Who Cares?

Barack Obama, now that's a president. With the Nittany Lions having been leapfrogged by Texas Tech in the BCS Standings, this guy hears the voices of millions of americans and proposes a solution. A college Football Playoff System of Eight Teams.

Without hesitation, I flick the lever. Obama for President. Joe Pa needs a Title.

Just Vote.

Make a Difference - VOTE!

Please get out and vote.
Either way. Republican or Democrat. Just Vote. Or Don't.

Make a difference....
Vote.

Notice to all Employees

Notice to All Employees

As of November 5, 2008, when President Obama is officially elected into office, our company will instill a few new policies which are in keeping with his new, inspiring issues of change and fairness:

1. All salespeople will be pooling their sales and bonuses into a common pool that will be divided equally between all of you. This will serve to give those of you who are underachieving a "fair shake."

2. All low level workers will be pooling their wages, including overtime, into a common pool, dividing it equally amongst yourselves. This will help those who are "too busy for overtime" to reap the rewards from those who have more spare time and can work extra hours.

3. All top management will now be referred to as "the government." We will not participate in this "pooling" experience because the law doesn't apply to us.

4. The "government" will give eloquent speeches to all employees every week, encouraging it's workers to continue to work hard "for the good of all."

5. The employees will be thrilled with these new policies because it's "good to spread the wealth." Those of you who have underachieved will finally get an opportunity; those of you who have worked hard and had success will feel more "patriotic."


6. The last few people who were hired should clean out their desks. Don't feel bad, though, because President Obama will give you free healthcare, free handouts, free oil for heating your home, free foodstamps, and he'll let you stay in your home for as long as you want even if you can't pay your mortgage. If you appeal directly to our democratic congress, you might even get a free flatscreen TV and a coupon for free haircuts (shouldn't all Americans be entitled to nice looking hair?)

Whether you agree with these policies or not, get out and vote on November 5th. If for no other reason, vote because thousands of people have given their lives for the right, and we all owe it to those people to respect their memory.

The Memory of Humor - Earl Weaver

There are so many things on the internet that deserve to not be forgotten. To me, this is especially true of some of the classically funny videos, sound bytes, and emails that get passed around.

Today's clip comes from a classic source, former Baltimore Orioles Hall of Fame Manager Earl Weaver. For those who haven't heard of Earl, he was the manager of the Orioles about 15 years between 1968 to 1982, and most surprising, if you had ever seen him in the 1980's, as of this posting, he's still alive and kicking.

Also of note about Earl - in the late 1980's, he was the namesake for Earl Weaver Baseball - one of the best baseball video games of it's era. Unfortnately for Earl, time has't been as kind to him as it was to the other Electronic Arts Celebrity from the 1980's, John Madden, who continues to rake in Millions of dollars from the success of his EA Sports Franchise.

Well, at least we'll always have Earl Telling us what he really thinks of Terry Crowley... Check out the Audio Clip Here...http://www.mediafire.com/?xnnjhwdlmqj