When I first wrote the Argument to Automate, I used the word INSPIRE to create a frame-work for calculating the outcome and impact of AP Automation. The “I” stood for, Identify a Process Map… the “N” stood for notate people’s time… you get the picture. I thought I was so clever because I used the final two letters, “RE” to proclaim that with all of the information you can now, “REvolutionize your process”.
When book came out, and I did my best to travel and speak on the topic… about three months into that process a kind, older lady, came up to me and said, “I like the INSPIRE process, but did you know that people die in revolutions?” There have only been a few times that I have been at a loss for words… that was one of them. (So) I renamed the last step, more appropriately, to RE-energize your process with a new plan.
What Did I Learn?
Well, I learned that it’s not such a great idea to give an analogy about something were people think they could be killed. However, I could not help myself when it came to explaining today’s article. Theoretically credit cards and accounts payable should get along, but traditional use of a credit cards can stand in the way of Accounts Payable Automation.
The traditional way of using a credit card is to establish a line of credit, get approved and hand out cards. There is nothing wrong with that, but if you are wanting to automate your AP process you can use a one big thing that naturally occurs… VISIBILITY!
That’s right folks (I feel like I am on QVC) visibility. When you use a credit card program you are buying stuff on the card and paying the credit card company for the things you have bought. I know I’m not breaking any ground with that explanation, but if you weren’t using the credit card for those purchases you would be getting an invoice, coding and approving that invoice and paying the vendor for that good or service directly. All of those steps give you information about the purchase… information you are able to track and report on. Not with a credit card. You have the approval of the entire statement along with the payment to the credit card company.
The key to your visibility is data. AP Automation can receive data from credit card companies that gives you insight to where the purchases were made and how much the purchases were. Your automation software will give you visibility to those expenses so you can know exactly who is buying what. (And) With an approval process in your AP Automation software you can also get justification and backup (receipts) for those purchases before you ever pay the credit card company. Then… Life is good!
Want to know more? Buy My Books!
The Argument to Automate – How Innovation Can INSPIRE Not Fire – click here to buy
The 8 Pitfalls of Accounts Payable Automation – click here to buy