“We stopped the collection calls, and now we’re even pursuing discounted terms from our vendors. That’s all based on our new ability to pay on time, even with all of our new addresses and vendors. Based solely on those discounts, we estimate to save $70,000 in our first year.”
Anton Akilov / Accounting Manager EōS Fitness
What problems did EōS Fitness face?
The AP department had severe growing pains as it acquired new gyms throughout the Southwest
Outdated vendor data stored in Oracle led to 30-40% of incorrect addresses
Payments were delayed by at least 5-7 days because of address errors in Oracle
Late fees, stop payment fees, and missed discounts were costing hundreds of thousands of dollars per year
It took the equivalent of one half-time employee just to compare and correct addresses captured in FileBound AP automation software against the payment addresses in Oracle
Vendors were calling about late payments demanding more of AP staff’s time
What solutions helped them?
Outsourced Mailroom Services: Paper and electronic invoices are sent directly to Digiscribe for immediate scanning and indexing to expedite invoice processing.
Workflow Automation Software: Digitized invoices are distributed, approved, and processed with software that eliminates time-consuming manual steps.
Integration Services: FileBound software was integrated with Oracle, allowing employees to seamlessly correct faulty addresses and eliminate invoicing errors. An email reminder system was established so that managers are prompted to stay on top of invoice payments.
Cloud Document Management Software: Financial documents are securely stored in the cloud allowing for quick and easy retrieval and sharing.
What impact did the solutions have?
$70,000 estimated annual savings on early payment discounts alone
$50,000 in savings on stop-payment fees
AP staff became 25% more productive
A vendor address database with a 30-40% error rate is now being corrected
AP staff no longer have to deal with angry vendors
Ability to expand to new locations without hiring additional AP staff
Invoice processing time was reduced to a few days from three weeks
Managers receive automatic invoice reminders and are staying on top of payments