Needs and Challenges
Not enough personnel
How many invoices can your Accounts Payable team process each day? Do you have enough people on staff to get all vendor invoices paid on time to avoid disconnects and service interruptions?
In today’s tight labor market, ensuring that your invoices are paid on time can be a problematic issue. “Getting behind” should not be an option… Yet, this happens often when a large number of invoices come in to be processed and your AP department is understaffed.
Too many invoices to process on time
Examples of issues resolved for our clients:
- Eliminating paper invoices
- Eliminating late fees
- Breaking down invoice information for intelligent reporting
- Creation of Accrual files
Vendor contract management issues
Managing vendor contracts is the first step in ensuring that the rates promised during the sourcing and proposal process are actually delivered. Vendor contract management ensures your organization that any rate changes and discounts flow through to its bottom line.
In ExpenseLogic, our business intelligence SaaS platform, all vendor contracts can be digitalized for easy desktop retrieval. Contract rates are used to audit each line item on an invoice. ExpenseLogic can set a limit for any line-item detail identified, resulting in one of the most thorough, continuous audits in the industry.
Vendor contract management is simplified by ExpenseLogic’s Contract Management database. This database ties services, devices, and assets to a vendor contract, and gives management and AP staff a view of the actual contract document. Email notifications 90 and 60 days prior to the expiration date ensure that contract expiration dates won’t be missed.
Contract Management is easy with ExpenseLogic’s Contract Management database. The Contract Management database ties the service or devices and equipment with the contract and gives the capability to view the actual contract document. Email notification 90, 60 days prior to expiration ensures that your contract expirations won’t be missed.
Examples of credits/savings obtained for our clients
A financial services firm avoided $2,700 in monthly charges on a water invoice. ExpenseLogic identified the problem at the meter level: there was a leak at the location. The vendor agreed to recredit the difference with normal usage.
A salvage parts dealer had 800+ phone lines, not their long-distance plan: moving these lines to the correct plan resulted in $10K+ in monthly savings.
A nationwide retailer of eyewear (glasses and contact lenses) with 800 locations saved $203K+ through an optimization of their electric and gas service contracts in deregulated states.
A transportation company was charged $1.4MM in erroneous billing by their wireless carrier, under incorrect data plans. Credits were applied to the invoices and the plans were corrected.
AT&T recredited a client some $500K+ previously billed for contract rates overages.
A healthcare client obtained $52K+ in credits on phone lines the vendor had erroneously forgot canceling.
Read More…
Errors on invoices requiring an investigation
Billing errors are the scourge of an efficient organization, and most companies don’t have the time or personnel for auditing and reconcile every invoice. RadiusPoint’s invoice audits, error identification and reconciliation process generate savings of over 25% with no sales, no carrier, and no vendor changes required.
RadiusPoint’s business intelligence SaaS platform ExpenseLogic takes the guesswork out of auditing and reconciling invoices on a monthly basis. Limits are set for each line item for ExpenseLogic to audit against them on each invoice. This optimizes vendor accountability. Our billing invoice validation process is a proactive expense management approach and a proven method for saving money.
Read More…
Late fees charged by vendors
Unless their contract stipulates otherwise, vendors typically charge late fees on unpaid invoices. According to an article published in Business.com, “Most late fees are between $25 and $50… Some companies use a percentage of the invoice amount to calculate the late fee.”
When the Accounts Payable department of an organization is understaffed or faces a sharp increase in the number of invoices to process (which often happens in fast-growth scenarios), late payments become a daily event. The additional costs of late fees can become significant.
Moreover, tying up late fees to invoices in an accounting system generates extra operations and an increase in time wasted unproductively. Instead of focusing on tasks generating value, Accounts Payable is catching up with unnecessary re-work.
RadiusPoint’s Invoice Processing service tracks invoices along their entire lifecycle. Our process systematizes the workflow from receipt of vendors’ invoices to their on-time payment. As a result, late fees are eliminated, and the efficiency of the process precludes non-necessary operations. The Accounts Payable staff can spend their time on productive tasks, and the resulting savings flow all the way to the bottom line.
Read More…
Service disconnects
Service disconnects are costly. Not only do they entail spending time investigating past-due charges, but also calling vendors to tackle service reconnection, often with associated reconnection fees. Even more importantly, service interruptions are disruptive to normal business operations. The cost of an interruption in phone service can be staggering in terms of lost business opportunities. Avoiding service interruptions should be priority #1 for any Accounts Payable department.
Our Invoice Processing service tracks all invoices along their entire lifecycle. Our ExpenseLogic platform helps organizations with multiple locations manage the accuracy, processing, and payment of all telecom and utility bills.
Our services include inputting both paper and electronic invoices into ExpenseLogic, coding charges, creating exceptions reports, setting up approvals for payment, and interfacing our platform file outputs with the organization’s current financial systems.
Examples of issues resolved for our clients
- Eliminating paper invoices
- Eliminating late fees
- Breaking down invoice information for intelligent reporting
- Creation of Accrual files
Read More…
