Customer Focus: Healthesystems

The Objective: Optimizing AP Processes

Healthesystems’ accounting department was processing an average of 350 invoices per month. With the large volume of documents and data, they realized a new process was crucial to improving their operational efficiency. Director of Accounting, Vin Richinelli noticed, “It was just a very paper heavy process. It felt like we were touching and scanning the same piece of paper and invoice multiple times. We definitely saw the potential for improved efficiency.”

Healthesystems was, in fact, utilizing an automated workflow system and had attempted to digitize its documents using SharePoint. In practice, however, SharePoint introduced complexities and inefficiencies of its own.

In order to route invoices for approval, Staff Accountant Kyanna Lee would scan each one and log it into a Sharepoint workflow. Kyanna would look at the vendor who submitted each invoice and select the proper approver from a pool of 50 approvers on staff.

Identifying Opportunities for Efficiency
The heavy workload and reliance on paper documents for information had operational ramifications for Healthesystems. To maximize efficiency, the accounting team assigned each part of their invoice process to a separate day of the week. One day would be reserved for scanning invoices and sending notices via Sharepoint, whereas another would be reserved for gathering packets of supporting documents for review, and so forth. Due to the involvement of paper records, everyone involved in a day’s process needed to be on site. Sick days, remote training, and vacation time were hard to accommodate. Taking documents out of the office went against desired controls. The accounting team had much to do, and there was little flexibility in getting it done.

Leslie Montoya, Healthesystems’ Accounting Manager said, “As an IT company, we’re continually looking to improve processes. Not only in the way we serve our customers, but in keeping our system modern for our admin department as well. Our AP process was cumbersome and did not align with how we conduct business. In that spirit we were looking to update it and keep pace with the accounting profession as a whole.”

Search for a Solution
The team researched multiple AP automation systems through their due diligence process. They ultimately chose KwikTag because it works seamlessly with their Dynamics ERP system, it came highly recommended by their trusted Dynamics partner, Ace Microtechnology, and the pricing was attractive.

Solution implemented
The heavy workload and reliance on paper documents for information had operational ramifications for Healthesystems. To maximize
efficiency, the accounting team assigned each part of their invoice process to a separate day of the week. One day would be reserved for scanning invoices and sending notices via Sharepoint, whereas another would be reserved for gathering packets of supporting documents for review, and so forth. Due to the involvement of paper records, everyone involved in a day’s process needed to be on site. Sick days, remote training, and vacation time were hard to accommodate. Taking documents out of the office went against desired controls. The accounting team had much to do, and there was little flexibility in getting it done.

Measurable results
Over 55 Hours Saved per Month
After Healthesystems implemented KwikTag, the time Kyanna spent scanning, routing, filing, and retrieving invoices for AP tasks dropped by 47 hours per month. Leslie and Vin are saving at least 11 hours per month reviewing packets of invoices and associated documents to approve invoices, cut checks, and run accrual reports. The time that used to be spent following up with approvers is nearly eliminated.

Up to 90% Reduction in Invoice Queue
Healthesystems’ process before using KwikTag meant that all of the invoices to come in each week remained in the queue until shortly before checks were cut at the week’s end, at which point they would be reviewed by leadership. With up to 400 invoices coming in per month, KwikTag provides the team full visibility into outstanding invoices, and things are looking good: “We are able to see everything in one place that’s still pending,” Leslie said, “That list has stayed very small. We really never have more than about 10 invoices waiting for approval at a time.”

Turning Accuracy into Efficiency
Adding some breathing room to the team’s schedule enables everyone to contribute more. Vin pointed out that Kyanna has more time to think about the optimal coding of each invoice. “We’re IT heavy, so we buy a lot of equipment. Now, I think she’s able to take a look at the invoice – is it something that we should capitalize? She has the opportunity to analyze and help us better code things.” Greater accuracy cuts down on the team’s review time, and time that they would have historically spent revising invoice codes in Dynamics GP.