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Category: Blog

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Utilizing Technology to Decrease Bookkeeper Turnover in the Public Sector

In the U.S. today, employee turnover is rising while at the same time the number of applicants for vacant positions is falling. According to a 2021 study by NEOGOV, “about a quarter of all current public sector job postings are getting seven applications or fewer,” much less than the 25 applicants they need to land one hire, according to NEOGOV.

None of this is news to public sector business departments, who have long struggled with high turnover rates for bookkeepers. But with hiring prospects so bleak, shouldn’t agencies be considering ways to retain the staff they have? 

In a 2021 article by routefifty.com, it was reported that “public-sector organizations devote considerable resources to hiring, but they often overlook retention.” This despite the fact that the financial impact of training and replacing staff members can come with a high price tag for organizations. According to the same article, the costs associated with turnover can be as much as “150% of (an) employee’s annual salary.” 

Public Sector Bookkeeping

Bookkeeper turnover continues to be a problem in many public sector agencies. The manual entry involved in the job can be both tedious and time-consuming. It can leave bookkeepers with little time to perform other functions required of their position, and is often cited as a contributor to job dissatisfaction. 

Bookkeepers are expected to be knowledgeable of, and to follow, policies and procedures for purchasing goods and services (i.e., correct use of bids, contracts, supporting document requirements, etc.), as well as a host of other competing responsibilities. Among their numerous duties, ordering supplies sits close to the top of the list and requires them to follow specific procedures while at the same time, in a lot of cases, having to use manual processes to enter lengthy requisitions. This alone can take up a large part of their day and come with a high margin for error.

In many organizations, bookkeepers are also tasked with general administrative duties on top of their already overwhelming responsibilities. Despite the important nature of their work and the stress involved, in the United States, the average salary for bookkeepers is $45,560, below the national average salary of $51,480 reported by the U.S. Bureau of Labor Statistics.

Lean Six Sigma Project: Bookkeeper Burnout

In 2018, a team vying for the Lean Six Sigma Green Belt Certification conducted a survey to uncover why bookkeepers employed at one of the largest school districts in the country were leaving. The turnover rate at 26 percent was significantly higher than the widely thought “acceptable rate” of 10 percent for turnover. 

Serving close to 100,000 students, the school district employed 85 bookkeepers working in 119 schools. The 26 percent turnover rate amounted to roughly 22 employees leaving their positions per year. The impact for the district in terms of cost of hiring and training, additional support needed after training, and purchasing errors and delays, was sizable.

The Lean Six Sigma team distributed a survey to the district’s 85 bookkeepers, of which 75 percent responded. Almost half reported that they had considered leaving their job, citing stress as the biggest issue they had with their position. 19 bookkeepers responded that they did not have enough time to complete their bookkeeper responsibilities each day, that the amount of work they were expected to perform was not reasonable, and that they did not receive adequate training.

April Marzzacco, a team member on the project, said of the results, “while suspected, the results were still shocking. The number of bookkeepers that were thinking of leaving due to job dissatisfaction was an eye opener for the district. We knew we needed to make improvements to increase their satisfaction, or face a hiring crisis.”

Technology as a Solution

In a lot of organizations, bookkeeper turnover can be traced back to the largely manual nature of the position. In many agencies still operating under a paper-based system, the procurement process is laborious, time-consuming, and error-prone. One of the solutions proposed by the Lean Six Sigma team as a result of their Green Belt project, was to implement new technology to automate purchasing at the district. Automating can lead to faster cycle times and improved productivity, while the elimination of paper and manual steps can free up time for employees to focus on more critical initiatives. “We discussed how using technology to automate some of the bookkeepers’ processes would allow them to spend less time on menial tasks and more time on value added projects. We believed that this would lead to greater job satisfaction and an increase in intrinsic reward,” said Marzzacco.

What is eProcurement?

An eProcurement marketplace is integrated with an organization’s ERP system and offers a single, seamless platform that facilitates all of the processes associated with the shop-order-pay transaction. Because an eProcurement system houses all vendors under a single interface, users are limited to purchasing from only those vendors that have been approved. This allows the eProcurement marketplace to be utilized by more employees, resulting in less reliance on bookkeepers for ordering. It also drastically cuts down on manual entry, allowing bookkeepers to focus on the more value-added duties of their position. 

After deploying an eProcurement marketplace in her own school district, Berea City Schools’s bookkeeper Becky Snyder reported the new system was straightforward, affordable, and required minimal user training. “It’s simple, just like we shop online at home,” she said. 

In order to combat bookkeeper burnout, organizations must consider automating procurement to eliminate time-consuming manual entry and allow other end-users to make compliant purchases. An effective eProcurement system can help with bookkeeper retention, saving agencies both time and money. 

Sources:

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5 Myths About eProcurement Systems (And Why They Aren’t True)

While the benefits of eProcurement are well known, there are still a number of agencies that continue to utilize outdated and inefficient systems for purchasing. From increased transparency and productivity, to proven hard dollar savings, eProcurement offers a solution for many of the challenges organizations face. The question remains then, why hasn’t eProcurement become more ubiquitous in agencies?  

Even in those organizations that have adopted online bidding and purchasing procedures, many still have not addressed the administrative inefficiencies that exist. As such, even fewer local organizations have been able to achieve total automation and extensive supplier enablement, which are paramount to harnessing the full power of eProcurement technologies.

Five Common eProcurement Myths

Low adoption rates can be attributed to several pervasive myths surrounding eProcurement. Most of these myths continue to persist despite advancements in technology rendering them moot today. 

MYTH 1:

With upfront costs for hardware as well as licensing fees, the price tag for implementation can easily stretch into the six figures. 

FACT: Today’s cloud computing offerings cost much less than their predecessors. Without hardware or licensing fees required, only subscription fees, eProcurement is much more financially accessible than it once was.

MYTH 2:

It is costly and complicated to integrate with an organization’s ERP system.

FACT: Advancements in technology have made integrating with an organization’s ERP easier than ever. In an American City & County article titled Removing The Obstacles To E-Procurement Adoption they report, “The availability (and low cost) of new technology standards such as XML have largely alleviated concerns about integrating e-procurement with back-end financial systems.” In fact, the syncing with an organization’s ERP allows items purchased to be assigned appropriate commodity codes to ensure transactions are posted appropriately for accounting purposes.

MYTH 3:

For organizations with small or non-existent IT departments, management of an eProcurement platform is a drain on resources. 

FACT: Cloud-based systems that offer a multi-vendor marketplace should only need to engage an organization’s IT department at initial ERP integration. eProcurement providers can easily manage supplier enablement, even for those vendors without existing punchout sites, eliminating the strain on buyer procurement and IT departments.

MYTH 4:

Due to additional costs to suppliers and complex onboarding processes, large suppliers will stop selling to local governments that adopt eProcurement measures. 

FACT: Today’s eProcurement marketplaces integrate all of an organization’s current suppliers at no extra cost to the supplier. What’s more, they can seamlessly incorporate suppliers regardless of technological capabilities or chosen platforms. In fact, eProcurement can streamline supplier engagement with the agency and help reduce operating costs for all parties involved. 

MYTH 5:

eProcurement systems prohibit organizations from working with small local businesses because it is either too costly for them, or just not feasible. 

FACT: eProcurement systems now have the ability to integrate suppliers regardless of their size or technological capabilities. In fact, the creation of fully-featured eCommerce stores for local businesses, specifically designed to support punchout commerce, have been responsible for propelling countless local suppliers into the world of eProcurement.

About EqualLevel’s eProcurement Marketplace

EqualLevel’s mission is to enable more effective and efficient public sector spend management that helps agencies streamline operations and optimize spending. EqualLevel combines the best eProcurement marketplace and eInvoicing capabilities into a seamless solution that is easier-to-use, faster to configure and deploy, and more cost-effective than any other procure-to-pay platform available today. With deep domain knowledge in procurement, a best- in-class cloud platform, a fast-growing network of public sector buyers and sellers, and industry-first innovations like ELSA (an AI-powered savings advisor), EqualLevel is leading the way in helping the public sector to increase the value of every dollar spent.   

Source: https://www.americancityandcounty.com/2011/08/01/removing-the-obstacles-to-e-procurement-adoption/

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Building a Case for eProcurement

By April Marzzacco – Strategic Sales Consultant, EqualLevel, Inc.

Purchasing departments across the country are reporting that they are busier than ever with staff shortages, budget cuts, and ongoing supply chain issues. It is not uncommon for agencies that are still limping along with manual entry to be struggling with the volume of purchase orders coming in and high bookkeeper burnout, while also dealing with maverick spend and non-compliant purchasing.

Whether it is these challenges or others that your department is facing, you may believe now is the time to find a solution that will streamline your purchasing process. Based on your research, and recommendations from other agencies, you may have already decided that implementing an eProcurement marketplace is just that solution. 

What is a business case?

Presenting a business case is considered the best way to introduce new initiatives to stakeholders. According to projectmanager.com, a business case is a presentation or document that outlines why a project should be executed, and how its benefits outweigh its costs. The goal of a business case is to convince stakeholders of a project’s value, and that the project you are proposing is a sound investment in which they should direct resources. To build a business case for EqualLevel’s eProcurement system, it is important to provide higher-ups with the information they need to understand both the importance of automating, and the return on investment (ROI). 

There are many recommended formats for structuring a business case but in general, it should cover the following five elements:

1. The Challenge

In this first section of your business case, you will outline your current process and the reasons why you believe change is necessary. Challenges you might include:

  • Manual entry is slowing down the purchase process
  • Manual entry causes more errors
  • Bookkeeper burnout 
  • Maverick spend
  • Non-compliant purchasing

You should also include the costs associated with your current system in this part of the business case. These could include any costs related to software, the wages paid to employees who manually enter requisitions and purchase orders, as well as the costs associated with continuing to overpay for goods and services. 

TIP: When tallying your current costs, if there is information you are not able to find within your organization, industry benchmarks should suffice. 

2. The Solution

In this section of your business case, you will present the solution you are recommending, namely, implementing EqualLevel’s software. This will be where you define what an eProcurement system is. Here is an example: “An eProcurement marketplace is integrated with an organization’s ERP system and offers a single, seamless platform that facilitates all of the processes associated with the shop-order-pay transaction. EqualLevel’s dashboard offers a consumer shopping-like experience where users can shop from all of their organization’s approved suppliers in one place. With this set-up, best value options are displayed and organizations report higher user acceptance and greater compliance.”

This is also the part of the business case where you will present how the software works. The best way to explain the functionality and capabilities of EqualLevel’s AI-powered software is to see it in use. EqualLevel creates customized software demos so you, and your organization’s stakeholders, can see the marketplace in action. The demos allow interested parties to get hands-on experience with the system and it lets them see how EqualLevel’s Savings Advisor (ELSA) locates savings in real-time, while a user shops.

3. The Cost 

EqualLevel is able to provide a worksheet to quickly calculate the results you can reasonably expect to achieve through deployment of its eProcurement marketplace. The worksheet divides savings into two areas: “soft” savings, where process costs will be reduced (the resources may be reallocated to other, more value-added, activities), and “hard” savings, where costs will actually be reduced (using ELSA). Once you have calculated your expected savings, you can subtract that from the cost of the marketplace software to determine your ROI. 

4. The Benefits

The next section in a business case should include the benefits your organization can anticipate from implementing your initiative. In this case the benefits of an eProcurement marketplace include:

  • Efficiency: Automating leads to faster cycle times and improved productivity. The elimination of paper and manual steps frees up time for employees to focus on more critical initiatives.
  • Cost Savings: With all approved vendors housed in one centralized location, best value products can be easily identified. 
  • Compliance: By automating the three-bid process and showing only contracted vendors, an eProcurement marketplace helps organizations comply with state and federal regulations.
  • Transparency: Robust reporting capabilities help ensure purchases conform to established policies. Real-time visibility into purchasing activities discourages maverick spending and provides leadership with valuable Insights.

5. The Timeline

Generally, an eProcurement marketplace can be implemented in 60 to 90 days and often a return on investment can be achieved within a single fiscal year. EqualLevel can provide a generic timeline for implementation to present to stakeholders or an estimated timeline can be created that is tailored to your organization’s unique situation.

Contact EqualLevel

A well-organized and thoughtful business case could be the difference between being able to implement an eProcurement marketplace, or not. Should you need help with this process, or for more information, go to www.equallevel.com.

April Marzzacco is a Strategic Sales Consultant for EqualLevel where she brings over 20 years of eCommerce and procurement experience to her role. Prior to EqualLevel, she served as a Business Process Analyst at the Lee County School District where she was responsible for production support, analysis, process documentation, training, and process improvement. She also worked in the district’s Procurement Department where she was instrumental in integrating both the EqualLevel marketplace and an eSourcing platform.

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eInvoicing: Why It’s So Important

For the past several years, the Federal Reserve System has encouraged businesses to switch from paper-based systems to electronic invoicing, or eInvoicing, to streamline payments across the nation. In a paper published by the Federal Reserve, The Strategies for Improving the U.S. Payment System, the agency called for businesses to implement the complete automation of transactions from the moment a purchase order is submitted, all the way through to payment and reconciliation. 

Benefits of eInvoicing

In many organizations still operating under a paper-based system, invoice approval and reconciliation are the most laborious, time-consuming, and error-prone steps in the procurement cycle. Paystream Advisors estimates $4 to $8 in processing costs can be saved for every paper invoice converted to an eInvoice. With organizations handling thousands of invoices, this adds up to significant savings. But processing costs are not the only benefit. According to the Federal Reserve Bank of Minnesota paper, U.S. Adoption of  Electronic Invoicing: Challenges and Opportunities, “while a business can accrue benefits from adopting electronic payments alone, materially greater benefits are gained in lower costs, cash management, fewer errors, risk mitigation and transparency when the entire process is electronic.” 

How eInvoicing Works

eInvoices are created, sent, and received in an automated, structured electronic format. This allows employees to quickly and easily approve suppliers’ invoices for payment, with or without a purchase order. Once approved, invoices can be exported or directly integrated into an accounts payable system. In the simplest terms, eInvoicing enables sellers to automatically generate and send invoices to customers digitally, and customers can in turn process and pay those invoices digitally. This results in increased control of overpayments, reduced data entry and document handling costs, and accelerated invoice approval. 

EqualLevel’s eInvoicing Software

EqualLevel’s eInvoicing software creates an efficient online system that integrates seamlessly with an organization’s accounting or ERP system. With the software, eInvoices are automatically entered into an accounts payable system where three-way matching processes ensure accuracy before payment completion. Through cXML, eInvoicing links internal financial workflows to payment systems for both suppliers and buyers. By integrating the two, organizations can make practical strides in their efforts to automate and enhance procurement. 

eInvoicing is essential for organizations looking to streamline their payment processes. Go to www.equallevel.com today for more information on EqualLevel’s eInvoicing capabilities. 

 

Sources: 

The Federal Reserve Bank of Minnesota paper, “U.S. Adoption of  Electronic Invoicing: Challenges and Opportunities” 

The Federal Reserve System paper, “The Strategies for Improving the U.S. Payment System.”

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How EqualLevel GO “Levels the Playing Field” for Small/Disadvantaged Businesses

When making purchases, procurement professionals expect the same functionality they experience as consumers shopping online at home. They want a seamless experience between their purchasing or Enterprise Resource Planning (ERP) system, and their approved vendors’ most up-to-date product and pricing information. Because setting up a connection between a vendor site and an organization’s financial system can be a complex undertaking, public sector organizations often inadvertently favor larger, more sophisticated vendors. They usually have just a few catalogs from large vendors integrated with their organization’s ERP and those businesses get the bulk of their dollars.

HOW CAN SMALL/DISADVANTAGED VENDORS COMPETE AGAINST THE BIG GUYS, ESPECIALLY IF THEY DON’T HAVE AN ONLINE PRESENCE ALREADY?

EqualLevel GO gives small OEMs or distributors, who may have limited IT capabilities, the opportunity to establish a punchout catalog store, or punchout store, that integrates with ERPs. This allows small companies to appear alongside their larger competitors.

A punchout store is a web-based, supplier-managed catalog storefront. The punchout store can be custom built on top of an existing eCommerce site or, more commonly, managed for the supplier by a third-party solution provider. Buying organization employees can access the supplier’s punchout store directly from their eProcurement marketplace, also known as “punching out” to the supplier’s site, or “punchout.” Punchout allows the organization to maintain full control over order approval and payment.

HOW PUNCHOUT WORKS

The customer connects, or “punches out,” from their company’s system to a supplier’s eCommerce site. The punchout site identifies the buying organization and displays the appropriate products and prices. The shopper searches and selects goods they wish to purchase and adds them to their cart on the punchout site. At the end of the shopping session, the shopper checks out, which sends descriptions and prices of the goods placed in their cart to their ERP system.

BENEFITS OF EQUALLEVELGO

EqualLevel GO’s punchout commerce site is scalable, easy-to-use and administer, and  is provided at no charge to sellers when combined with EqualLevel’s buy-side eProcurement Marketplace solution. EqualLevel GO customers experience tangible benefits, such as:

Increased Average Order Value

A punchout catalog store, combined with up-selling and cross-selling, is a powerful combination that increases total and average order value. Suppliers can show related and complementary products in their punchout store shopping cart and can anticipate and make adjustments that will increase the average sale.

Greater Ability to Attract Big Customers

When it comes to gaining large customers, a punchout catalog store is a win-win. Big enterprises are often on the lookout for suppliers who can allow them to order directly through their ERP procurement system. For many large organizations, punchout is a ”must-have” for engagement.

Improved Sales Productivity

A punchout catalog store streamlines the sales process because it produces more accurate orders. This means less time is spent correcting orders, which improves response times and overall productivity.

Improved Customer Relationships

By simplifying the purchasing process, suppliers strengthen customer relationships by receiving and responding to orders more quickly.

Small/disadvantaged customers like Midwest Technology Products, GBEX, and El Paso Office Supply have implemented, or are in the process of implementing, EqualLevel GO to ensure their products are showing up in the search results of big buyers. “Every year since creating our punchout store, sales have increased. Even when a customer doesn’t end up placing an order online, more often than not they’ve visited the site beforehand to learn and discover, before picking up the phone to order,” said Robin Peterson of Midwest Technology Products.

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McKinsey Endorses Digitizing Procurement and Payables to Optimize Public Sector Savings

By Orville Bailey, CEO, EqualLevel.

Every year the state, local and education (SLED) procurement market spends a staggering $1.5 trillion dollars annually on goods and services. In 2018, after analyzing more than 700 procurement efforts, management consulting firm McKinsey & Company concluded that at 28 percent, the public sector has the greatest potential for savings of any other sector (How smarter purchasing can improve public-sector performance).  In round dollars this adds up to the public sector potentially being able to save $400 billion through optimizing procurement. 

According to McKinsey, online tools can reduce administrative burdens. And there’s no question just the streamlining of operations alone could save hundreds of millions in non value-added time. Procure-to-pay automation improves the efficiency and effectiveness of the procurement and payables processes by digitizing manual tasks and leveraging transparency to improve decision-making. The public sector has long been plagued by the inefficiencies and costs associated with manual requisitioning, ordering, invoice reconciliation, and payment processing.

Innovating with a best-of-breed eProcurement and eInvoicing platform optimizes execution across all processes associated with the rec-order-pay transaction. A well-designed solution helps procurement and finance to streamline operations. The benefits of eProcurement and eInvoicing are numerous:

Efficiency: Automating leads to faster cycle times and improved productivity. The elimination of paper and manual steps frees up time for employees to focus on more critical initiatives.

Cost Savings: With all approved vendors housed in one centralized location, best value products can be easily identified.

Compliance: By automating the three-bid process and showing only contracted vendors, an eProcurement marketplace helps organizations comply with state and federal regulations.

Transparency: Robust reporting capabilities help ensure purchases conform to established policies. Real-time visibility into purchasing activities discourages maverick spending and provides leadership with valuable insights.

There is no doubt “the use of modern technology can take a big chunk off of public-sector bills” (Now is the Time for Procurement to Lead Value Capture) and the time to automate procure-to-pay is now. By improving efficiencies, the SLED market has the opportunity to generate savings that can help to offset the impact of COVID-19 and other budget pressures they are facing. 

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How Cooperative Purchasing Marketplaces Optimize savings for the Public Sector

Recently, leading cooperatives have recognized the need to create a one-stop-shop transactional marketplace for their members. Cooperatives like Sourcewell, E&I, MHEC, AEPA, and TIPS have announced or implemented marketplaces to help their members reduce price discovery, order processing and invoicing times. When you reduce costs within a government organization or institution, funds are freed up for other mission-specific uses. This means that constituents win, too. Cooperatives also realize benefits, with access to online spend reporting and tighter integrations with members topping the list.

How are cooperative agreements established? Well, the cooperative or lead agency runs a formal competitive process, following procurement codes, state and local statutes to determine which vendors qualify to sell specific goods and services under the agreement. A trusted cooperative contract eliminates the time and cost associated with your agency gathering requirements, creating the RFP, reviewing multiple bidders, and making an award. With cooperative purchasing, both the buyer and seller benefit from a dramatically shortened and less costly sales cycle.

The pandemic emphasized a vital lesson; all public sector organizations must digitize. This is especially true for cooperatives. The ones that fail to embrace a “digital-first” approach to improving their value proposition are at risk of being left behind and losing competitiveness. Digitalization is raising the stakes, so cooperatives have a growing incentive to find new ways to enhance member experience.

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Modernize Procure-to-Pay with Real-Time Information

The role of education procurement is evolving, and the pandemic provided a glimpse into one of the key drivers of the evolution – the importance of real-time information. For much-needed supplies, such as personal protective equipment, procurement must have real-time information about supply, sources, and prices to accelerate decision-making and collaboration. Delays or inaccuracy in such information can also lead to canceled orders, incomplete or delayed shipments, unwanted substitutions, and overpaying. The following are a few examples of how procurement is evolving the use of real-time information in day-to-day procurement.

Real-time Comparison Shopping Across Approved Contracts
As consumers, we have always comparison shopped – haggling for the best price has been part of the earliest markets. With the emergence of the internet, comparison shopping can now be instantaneous. Consumers can find the same products from different suppliers with just a few clicks and then choose the best price. Unfortunately, requisitioners at their work do not behave like consumers, and they tend to make the most convenient purchase. This convenience costs districts a significant amount of extra money each year. Artificial Intelligence technology now makes it possible to identify, in real-time, lower prices and substitutes for items prior to checkout.

Real-time Price Check
Purchase compliance verification is done after payment by conducting an audit of randomly selected invoices. These audits help to recover overpayments and mitigate the risk of further non-compliance. Although effective, price compliance audits are resource-intensive and not scalable. Real-time online price checks can proactively analyze thousands of contract price data points each day and identify discrepancies, enabling procurement to remedy pricing issues prior to purchase.

Real-time Evaluation of Invoices versus POs
Manually matching invoices to POs requires significant time to enter information and confirm pricing. If discrepancies are found, further time is needed to escalate the issue internally or reach out to the supplier. Automating the matching process eliminates manual steps and instantly feeds the invoice into the financial system. When issues during matching are uncovered, the invoice is sent electronically back to the supplier to correct and resubmit.

60 to 90 Day Implementation
Real-time procurement is a must for districts that want to streamline their procure-to-pay process and improve compliance and savings. School districts can see benefits quickly with applications that complement existing financial systems and can be implemented in 60 to 90 days. Often a return on investment can be achieved within a single fiscal year. By making informed decisions based on real-time data, school districts can quickly revert meaningful dollars directly back to the classroom.

Article first published on the Florida Association of School Business Officials (FASBO) Bulletin Board.

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Best-in-Breed SAAS: The Best Value for Public Sector Agencies

In the past, public sector organizations contracted with large-scale vendors for a single platform of integrated applications. The data and information responsible for powering each organization were consolidated into one unified system. Along with its efficiency and uniformity, full-suite solutions also came with major shortcomings.

In general, updates for full-suite systems were infrequent and lengthy to install due to their size and coverage. These delays in innovation were inefficient, and they rendered the functionality of the suite incomplete. Workarounds became standard to support the ever-advancing functional needs of department users.

With cXML integration standards and the accessibility of open Application Programming Interfaces (APIs), agencies are starting to distance themselves from the full-suite approach and embrace best-in-breed solutions.

What is a best-in-breed solution?

Best-in-breed systems perform specialized functions within a given niche.

Instead of finding a universal software solution, agencies can install multiple best-in-breed systems and link them to create a specialized patchwork platform. As best-in-breed implementation becomes increasingly commonplace, organizations ensure that their full-suite systems are open, their standards are based with APIs, and they have well-detailed documentation to optimize the approach.

The Benefits of Best-In-Breed Solutions

Best-in-breed solutions are designed to adapt and provide solutions requiring focused performance and specialization. Best-in-breed programs are smaller than full suites and run independently, updating smoothly and seamlessly without affecting other systems, accelerating beneficial returns, and reducing project risks.

Their targeted focus allows best-in-breed manufacturers to quickly accommodate market changes and align solutions more closely with strategic business goals. Thus, agencies using best-in-breed solutions are more likely to create nuanced approaches to problems, quickly respond to market fluctuations and meet personalized requirements. Because these systems are optimized for each niche, implementation and training (if necessary) are lighter, while user experience is generally straightforward and involves fewer stakeholders. Organizations then have access to in-depth documentation that outlines functionality for each solution and its respective performance report which can be used to promote efficiency.

The Best Solution for Your Organization

Businesses are presented with a multitude of solutions. To find the one best suited for your organization, select a solution that:

  • meets your specific functional needs without compromises
  • is built on a modern SAAS technology stack
  • helps maximize your ability to leverage the current enterprise system, and
  • has a strong product roadmap of future innovations.

In a post-COVID economic environment that’s clouded with uncertainty, organizations, and teams should consider best-in-breed solutions rather than bearing the cost and disruption due to outdated, monolithic systems of the past.

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Benefits of Digitizing the Invoice to Payment Process

In far too many organizations, the invoice reconciliation and approval process within the Accounts Payable department is the most laborious, time-consuming, and error-prone step of the procurement cycle.

Many organizations still rely heavily on paper and manual processes for their accounts payable, including managing invoices that are often received via email, regular mail, or fax. In some cases, personnel are required to be on-site, which can prove difficult during times of remote work. Even when invoices can be provided via email or fax, they may be sent to the wrong person, adding even more time and confusion to the process. Once in the right hands, to log the invoice into the organization’s financial system, the data is manually entered and the documents are scanned and uploaded. It is a tedious and cumbersome operation.

The sheer volume of invoices and the variety of sources that they come from make the accounts payable process a daunting task for organizations that are still utilizing paper documentation. It’s often required that one or more full-time employees remain dedicated to entering and reconciling hundreds or thousands of invoices on a weekly basis. Fortunately, advancements in technology, namely the widespread use of cloud computing and increased accessibility to e-procurement solutions, are changing the dynamics for invoicing.

EqualLevel’s e-invoicing solution provides a means to seamlessly and electronically exchange invoices between software systems and automate key portions of the invoice reconciliation process. With e-invoicing, suppliers may generate an electronic invoice from their own system, or from a system made available by the e-procurement provider who services the buying organization. All invoices can then be sent electronically, directly to the buying organization’s e-procurement application, regardless of the supplier’s technical sophistication, greatly simplifying the process.

The e-invoicing solution may be integrated with an organization’s existing accounting or enterprise resource planning (ERP) system to replace an inefficient, paper-based invoice approval process with a convenient online system. The invoice reconciliation and approval process may take place in the e-procurement system, the organization’s ERP system, or in both through a two-step hybrid approach. In the hybrid approach, the e-procurement system will match the invoices and automatically reject those that violate predetermined exception rules, including but not limited to invalid invoice items, incorrect tax or shipping additions, and substantial price increases. Invoices that pass these initial rules are then transmitted to the ERP system for final reconciliation, where less critical exceptions can be routed for manual review before payment approval..

Options for transmitting invoices to the ERP system will depend on the flexibility and robustness of the solution from the e-procurement provider, but some possible options include sending the invoices via cXML, pulling the invoice data via an API integration, or an automated export/import of an invoice data file.

Automating this process helps organizations more easily manage the entire invoicing lifecycle. Some of the key benefits of e-invoicing include:

  • Automating the invoice entry and reconciliation.
  • Receiving structured and uniform invoices.
  • Reducing data entry and document handling costs.
  • Reducing errors caused by manual data entry.
  • Monitoring transactions in real-time.
  • Slashing the invoice processing time.
  • Eliminating late payment charges.
  • Taking advantage of early payment discounts.

Digitizing the invoicing process streamlines the entire workflow and frees up valuable time for financial professionals to spend on more strategic tasks.

Are you ready to get started? For more information, visit https://equallevel.com/invoice-reconciliation/.

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