If you are at Fusion this week – comes see this session live!
Weather you like or not, outsourcing is a tool that is here to say. If you are one of those that have looked to outsourcing or are looking there are a few things you should know and be prepared for as outsource scanning for AP Automation.
So why did I use a ten week vacation? Well if you have ever gone on a vacation you know that it takes a certain amount of preparation and even with the best preparing (especially if you have never been to that part or the world) you can’t prepare for everything… there are always a few surprises. (So) Here are a few things to do to make sure your vacation… or outsources scanning goes well.
Start with You
The advice I give with any project, but especially with outsourcing scanning is to look internal before you look external. This means to really get a good read on what is going on with your company and how likely they are to change.
Put Down the Mouse
Along with the first piece of advice, putting the mouse down is similar. I use this phrase to tell people that first you have to do your homework (next) before you start calling service providers. This even goes for those of you that have a good relationship with a service provider or have been recommended a service provider.
In both books (Argument and 8 Pitfalls) I give specific numbers you should calculate and know for AP Automation. However, with outsource scanning there are a few unique things you should know. One is your cycle time. This is the time an invoice takes to be approved from receipt to entry into the accounting system. The reason this is important is to insure that outsourcing doesn’t add to this time. Another number you should know is your cost to process. Not your entire cost (like cost per invoice) but just the upfront capture cost.
Once you have done your homework and know your numbers, you have to use those numbers to “benchmark” your goals. Benchmarking is important because it will tell you when and if you have been successful. An example is cost. If it cost you $0.45 per invoice to capture data for processing and you are looking at a service provider that will charge you $1, then you should look somewhere else.
Here are a few things to consider after you have found your outsource scanning service provider. One, is to be mindful that you are giving your vendors options when it comes to sending in invoices. Your outsource scanning service provider won’t like this because they are paid on the number of invoices they process. However, limiting the number of invoices you have to scan will ultimately work in your favor. (And) Second, keep in mind, and plan for the fact that your internal staff is really the one making the change, not your vendors.
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