11 Oct Dear CFO, Please Stop Passing the Buck
I had a conversation with the Controller of a well-known American Woman’s luggage and handbag design company a few weeks ago. She explained to me that her cost per invoice is simply too high and it was a top priority in the organization to reduce it. I asked if she would share with me what their current cost per invoice was. She informed me that is was currently $8 an invoice and that they process approximately 4000 invoices per month. I then asked a simple question, “Do you manually input those invoices into your ERP system?” She answered “Yes.” I shared with her how our solution automates the data extraction of an invoice and automatically imports it into their ERP system. We guarantee a 99% accuracy rate of the data entered, and the best part is we can do this all for less than $2 an invoice. She then quickly responded: “Well, that would eliminate over 5 people in our AP department’s jobs, and that was not an option for them.” Let’s just say the conversation stopped there. When 75% of your cost is labor, how else do you affect the cost per invoice but to reduce the labor cost? You see, I was having the right conversation with the wrong person in the organization, yet she was the one tasked by the CFO to find “the” solution.
Warning: May Result in a Significant Decrease in Cost
I’m going to be clear, automating tasks that your organization is currently doing manually is going to result in a significant decrease in labor costs and increase in efficiency. Yes, a reduction in labor cost directly correlates to a reduction in jobs.
What Baffles Me
That’s why it baffles me when CFO’s task people on their team to investigate “what options are out there”. To me, that’s like asking an employee to interview someone to replace them without having another role lined up for them in the organization.
Benefits to Automation
One of the many benefits V3 offers organizations is the ability to automate a lot of the tasks that companies are doing manually today such as AP, Contract Management, HR, and sales tasks. As a direct result, those organizations that switch to automated tasks will see a significant cost savings and increased efficiencies that will directly impact their bottom line.
Key to Automating AP
They key to automating your AP process is creating a strategy that compliments your current process, reduces the risk of manual errors and strengthens internal controls around accounts payable processing. Change can be difficult but at V3 we specialize in making it as painless as possible for our clients as our AP Automation Managed Service does all the work for you. We can have you up and fully automated in less than 8 weeks. Our solution eliminates data entry, routes invoices through an easy to follow rules-based workflows, and seamlessly integrates into any ERP solution. The only question you’ll be asking yourself is why you didn’t do this sooner? Email us at email@example.com