Posts Tagged ‘expenses’

Clear Cost Model Allows Easy ROI Calculations

January 15, 2014
Business today is desperately trying to engineer cost out of the business...

Business today is desperately trying to engineer cost out of the business…

Return on Investment (ROI) is at the heart of every significant business decision. In the simplest of terms it is a measure of what you get for what you give. Research by Ohio State University found that 4 out of 5 buyers seek “value” before price. In other words, most people will give more to get more.

“Value” includes Quality, Flexibility of the offering, and Availability all as a function of Price. “Quality” means the product delivers what is required (or wanted) and does what is promised. Economists call this the “Law of Marginal Utility.” For the rest of us, it means what blows your hair back won’t necessarily interest the next guy. When we talk about ROI, we have to keep it in the context of what is important to the buyer.

What are businesses requiring today? First, they want more customers and more sales. That is pretty well true no matter what the economic conditions are. Beyond that, however, is that business today is desperately seeking ways to engineer cost out of the business. Most of the improved earnings reports are the result of cost reductions. And while cost reduction began as a way to respond to the recession, evidence suggests that it is quickly becoming a permanent part of business culture.

With a paper-based invoice processing system the company incurs a significant “cost” in handling paper, but it is difficult to quantify the short-run cash savings. Creating a long-run “saving” by installing imaging, for example, doesn’t add value if I still have the floor space, the employees and all my other out-of-pocket expenses. The value may be intrinsic, but few businesses are investing today based upon intangible value. The CFO will say “Show me the money!”

FileBound offers a rare opportunity to eliminate work at a value-based price. A major task in the AP department is entering data from paper invoices into the Accounting System. Typical information entered is a vendor name, purchase order number, invoice number, payment due date and general ledger account code (s) and total due. Because this information is normally put into the accounting system after all processing and approvals, other logging and data entry of the invoice typically takes place before the invoice is ready for entry to the accounting system.

With FileBound all of this changes. Invoices are scanned immediately upon arrival. The needed information is electronically picked up off the
invoice and captured eliminating data entry and other manual tasks to a fraction of the time normally required. Routing and review of invoices is all handled electronically, eliminating hand routing and handling of the invoices. Finally, the scanned information is automatically imported into the general ledger accounting system and invoices can be paid without further data entry.

Best of all, not only is the work more efficient, much of the original work (key entering data) is gone forever. This provides the opportunity to either repurpose staff to cash-producing work (such as AR collections and sales proposal follow-ups) or eliminate head count. Either way, the business gets cash returns for the investment.

Added benefits include improved accuracy and reduced mailing expense. Errors in data entry create extra work and cost. With FileBound, that problem is gone forever because the information is picked up electronically from the invoice. Invoices received at field offices are now scanned, eliminating mailing or courier expense.

High value for a low price with FileBound – an easy ROI!

Maricopa County Sheriff’s Office

December 11, 2013
As the largest Sheriff's office in the country, having employee paperwork digitized helped the department stay efficient.

As the largest sheriff’s office in the country, digitized employee paperwork became a necessity for an effective hiring process.

The Maricopa County Sheriff’s Office is a fully integrated law enforcement agency committed to being the leader in establishing the standards for providing professional quality law enforcement, detention, and support services to the citizens of Maricopa County and to other criminal justice agencies. The Maricopa County Sheriff’s Office, headed by the famed Sheriff Joe Arpaio, is the most talked about and nationally recognized Sheriff’s Office in the country today.

The Problem

The Maricopa County Sheriff’s Office, the largest sheriff’s office in the country, desperately needed to streamline their employee hiring and screening process. Their current method was very complex and paper based, which made keeping track of important documents extremely difficult. Due to their lengthy hiring and screening process they were exhausting their labor budgets. They were constantly extending the timeframe needed to process applicant paperwork. The substantial amount of time that it was taking the human resources department to hire applicants for employment, resulted in excessive overtime expenses, costly mistakes, miss-filed paperwork, and duplicated efforts. With paper everywhere it was also difficult to remain compliant with existing privacy laws and regulations. It was painfully obvious; the Maricopa County Sheriff’s Office needed a document management solution, fast.

FileBound Results

FileBound has completely changed the way the Maricopa County Sheriff’s Office manages their paperwork. They no longer have piles of paperwork waiting to get processed, which allows them to get new employees up and running as a quick and easy process. FileBound is a versatile, highly scalable and feature rich document management solution. Due to its web-based structure it is highly customizable, which allows administrators to create a solution that meets all of their document management needs.