In the traditional payables approach, invoices pass through numerous hands. Thousands of invoices could translate to literally millions of touch-points, with a corresponding increase in cost, potential mistakes, and delays. In contrast, keeping touch-points to a bare minimum with an electronic A/P system reduces cost and eliminates the labor and frustration that inevitably accompany error. Furthermore, resources are freed up for higher-value tasks.

Centralizing A/P creates the ability to standardize policies across the entire portfolio, and it places oversight and control right where it should be: in the owner's and manager's hands. And going paperless carries an added advantage of boosting sustainability efforts by eliminating thousands of pieces of paper and the incalculable carbon footprint associated with moving a massive volume of paper around an organization.

How does electronic, paperless A/P processing work?

• Vendor invoices are received at a central location and scanned en masse, and attached to the core property management system.
• Pre-determined workflow routines are assigned to each digitized invoice.
• Electronic invoices are auto-routed through an online approval process.
• Payment is transferred to the recipient via a hard check, or, better yet, EFT.

What can electronic invoicing do for owners and managers?

• Centralize and standardize policies and controls across the organization;
• Reduce cost and labor associated with copying, handling and storing paper;
• Automate online approval notices to managers;
• Reduce invoice cycle time;
• Produce benefits from early-pay discounts, late-fee avoidance, and payments scheduled to maximize cash flow;
• Fully integrate with PM software;
• Allow drilldown to the transaction level.

Economic constraints are forcing property owners and managers to become ever more innovative in accomplishing more with fewer resources. Fortunately, technology solutions that greatly enhance A/P functionality are within reach, and can give decision-makers a valuable asset in an increasingly competitive business arena.

Joel R. Nelson works at Yardi Systems.