"Can you customise your Account Payable software to suit our workflow?" This question frequently arises when we speak with new clients, and our answer might surprise you.
Companies are conscious that their Standard Operating Procedures are unique and worry about being able to replicate them. So, it can be controversial when we say that we implement best practices and don’t recommend or implement a custom process for every client. Customised to match your business and the current process is better, right?
Well, not really. In our experience, customisation is often expensive and unnecessary. By avoiding modifications, you can keep your cost of ownership lower and maximise your return on investment.
Why standardisation and best practice are the way to go
After being in this business for over a decade, with over 150 Pronto AP Automation implementations under our belt, we are intimately familiar with the wide range of operational processes and rules within different organisations. So, why don’t we customise each workflow for our customers?
- Manual processes are often flawed processes
Organisations look at their current processes and worry about how to replicate the convoluted approval process or cross-checking requirements. In our experience, it’s crucial to take a step back at this point and consider the bigger picture. How many of those unique or convoluted processes were developed as manual workarounds? And what would the best and most efficient process look like for your company?
There is no point in automating bad processes. You should always review, simplify and improve your SOP before automating. We do this as part of the consultation process when working with a new customer, and more often than not, discover that modification isn’t required.
- Customisations are expensive
When comparing AP Automation quotes, always consider the cost of consultancy. When you are looking at heavy modifications to recreate a complex process, this generally comes with a hefty consultancy fee. These fees significantly impact on the cost of ownership for your AP Automation solution, not only at the point of purchase but also if you ever need to upgrade or repair your system. Standardisation lowers the automation implementation cost, ensuring you get a positive ROI sooner.
- The risk of knowledge loss
If you do implement a heavily customised system, the structure and build of this system will be unique. You’ll likely have a product expert who supported the build at the software organisation, and an internal product expert who worked with them on setup and implementation. But what happens if either of these product experts leaves their organisation? There is a high risk of losing the knowledge and understanding of your system. Worst case scenario? You need to start all over again.
- Our best practice has been developed based on our depth of experience
Instead of charging high consultancy fees to build customised workflows, we leverage our deep knowledge and understanding of the ERPs that we work with. Let’s take Pronto as an example. Our software is the leading AP Automation solution for Pronto Xi because we know the system inside out. Our customers can leverage our intricate knowledge of how the system works and the best way to integrate with it.
When we decided to partner with AlayaCare to develop a fully integrated solution for Aged Care, we invested heavily in research and development to ensure that we had a thorough understanding of the step-by-step processes being followed, the innate challenges they were presenting to Aged Care stakeholders, and the legislative requirements.
But what about changes to legislation or industry-specific requirements?
When an industry standard or legislative requirement is introduced, we work closely with industry leaders, clients and our implementation partners to incorporate new and emerging needs. In fact, our AlayaCare integration project began in response to the challenges that the Improved Payment Arrangement created. Our PTRS module is another great example of how the AP Automation best practice process evolves in line with legislation.
What does best practice look like?
While the specific steps within the process for each ERP may differ, there are several core layers of logic to any best practice approach.
- Verification – Is the invoice fit to process? We check for duplicates, missing vendor information, or an incorrect PO status.
- Authorisation – The invoice is checked against the authoriser's permissions and other control measures, including source systems such as spend permission data in the ERP, the purchase order in the system, or the client name in the CRM.
- Audit and compliance – an AP audit evaluates internal controls and compliance with regulations and vendor agreements. Redmap’s AP automation ensures that you are checking compliance on a day-to-day basis, by taking actions such as confirming that the invoice bank details match the bank details on file, that the vendor is registered for GST and that the person approving the invoice has the authority to do so. Plus, once an invoice enters the system, it is tracked and filed for ease of reference whenever you need it.
This logic underpins AP Automation's best practices across any organisation within any industry. Once you strip back inefficiency and unnecessary manual workarounds within your process, you can consider the way forward. We highly recommend it is built on the above logic, leveraging best practices to reduce the cost of ownership and maximise your ROI.
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