THE PROBLEM WITH PAPER Presented by Jim Campbell & Michele - PowerPoint PPT Presentation

THE PROBLEM WITH PAPER Presented by Jim Campbell & Michele Retzbach Sponsored by

Meet the Speakers Jim Campbell Michele Retzbach Vice President of Sales, Solutions Consultant Construction

Agenda 1 Trends in Payment Technology 2 Challenges in Construction 3 Considerations Before Automating 4 Solutions within AP Automation

WE LIVE IN A DIGITAL INTERCONNECTED WORLD

EVERY SINGLE INDUSTRY IS SHIFTING TO KEEP UP. Community Association Community Association Real Estate Real Estate Construction Construction Management Management Healthcare Healthcare Non-profits Non-profits Hospitality Hospitality Finance Finance Technology Technology Education Education

TRENDS IN PAYMENT TECHNOLOGY 1914 1958 1974 1994 1999 2012 2014 2020 PayPal was Hedman Electronic Integrated Apple Bank of Amazon AvidXchange founded Manufacturing credit card accounting America was launched the introduced Co developed terminals systems and Apple Pay issues the founded, AvidPay the F&E begin to procure-to- first credit becoming functionality for iPhone Check Writer appear pay card an e- users to machine solutions increase commerce facilitate the pioneer mobility of shift in B2B making payments payments

THE WORLD OF AP IS RAPIDLY CHANGING 70% of all B2B Administrative costs B2B commerce is payments are made are mounting – over going digital and AP by check – 80% for $2.15 billion annually is being left behind small and medium businesses

CONSTRUCTION CHALLENGES 43% 45% 50% More than two out of five Nearly half of construction said automation technology would construction professionals (43%) professionals report there are be extremely helpful in preparing say the biggest hindrance to three processes still dependent on for future business continuity automating business processes is paper based or manually created needs. that there are too many systems electronic files that do not integrate.

CONSTRUCTION CHALLENGES IN AP Intaking Capturing Matching Reporting Approvals Invoices Data • Filing cabinets • Received in a • Non-standard • Invoices must be • Tracking down and stacks of huge variety of data means matched to the right paper formats manual data purchase orders/ approvers is time • Fragmented and entry to ERP contracts consuming • Invoices are not siloed systems standard across • Costly manual • Errors add • Slow process • Manual data suppliers process manual results in missed entry and reconciliation/ discounts / late • Prone to errors increased resolution payments likelihood of error

YET… MOST B2B INVOICES AND PAYMENTS ARE STILL PAPER BASED.

74% $3-7 of companies Total cost of processing experienced actual or a traditional check attempted check fraud We looked at this and realized, people's lives are better without the paper check.

POLL QUESTION: HOW MANY VENDOR PAYMENTS DO YOU MAKE IN A MONTH? A. 100 - 250 B. 251 - 500 C. 501 - 1,000 D. 1,000 + 12

CONSIDERATIONS BEFORE AUTOMATING: Volumes – Greater than 100 invoices or payments per month? Process - Is it all currently manual? Which steps need eliminated, maintained or improved? Bottlenecks – External forces, like reliance on U.S. mail or Internal forces like people/approval Scale - In growth mode/needing to increase size of AP team

WILL AUTOMATION CHANGE THE AP PROCESS THAT WE CURRENTLY HAVE IN PLACE?

BEFORE AUTOMATION MANUAL DATA ENTRY APPROVE INVOICE OPEN MAIL ROUTE INVOICE CODE SELECT CHECK BANK REC FOLLOW UP INVOICE FILED

After Automation APPROVE SELECT CODE

SUPPLIERS CAN INVOICE MULTIPLE WAYS RECEIVE INVOICE INDEXING CAPTURE CAPTURE HEADER DETAIL SUBMIT FOR APPROVAL

PROCESS IMPROVEMENT SUMMARY Reduce Improve manual data transaction entry visibility Optimize Processes for Invoices and Payments Institute Gain security approval and control workflows

HOW WILL AP AUTOMATION WORK WITH MY ACCOUNTING SYSTEM?

INTEGRATIONS Multitude of accounting systems created for the construction industry, integration between ERP and AP automation is key.

COMPLETE SOLUTION FOR AP AUTOMATION Purchase Order Invoice Pay Pay Bill Application Application Application Services Services Your Accounting System/ERP

WHAT DOES THE IMPLEMENTATION PROCESS LOOK LIKE?

IMPLEMENTATION TIMELINE

Continuing to do today’s job Security is paramount with yesterday’s methods delays profitability for business tomorrow . A new era of employees want to elevate their value and refuse to “push paper” Business who navigate the transition from manual to Outsourced services are becoming modern payment systems are a common way of doing business poised to win Organizations must be ready to grow with or without extra headcount Online, mobile and real-time information are must haves

IF NOT NOW, WHEN? “The greatest danger in times of turbulence is not the turbulence – it is to act with yesterday’s logic.” – Peter Drucker WILL YOUR BUSINESS BE PREPARED?

POLL QUESTION: WHAT IS YOUR NEXT STEP? A. I’D LIKE TO SEE A CUSTOM DEMO. B. I WANT MORE INFORMATION ON AP AUTOMATION. C. I AM JUST HERE TO LEARN. 26

Q&A SESSION To submit a question for Jim or Michele, type it into the chat. 27

THANK YOU FOR ATTENDING! Look for an email from us about how to view playback and download a copy of today’s presentation. For more helpful webinars, visit constructionbusinessowner.com. 28

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