SMB Automation of Accounts Payable and Accounts Receivable

Abstract

While many large organizations have streamlined their business process end-to-end with entity resource planning (ERP) systems, many small and medium size businesses (SMBs) have yet to even consider (much less implement) ERP systems due to the enormous cost and complexity. The monumental challenge that SMBs often face is that financial processes revolving around cash management, relating specifically to accounts payable (AP) and accounts receivables (AR), are too long and resource intensive. SMBs also tend to stretch other resources thin when forced to focus on the completion of financial tasks rather than focusing on their core competencies. Nevertheless, cash management strategies related to AP/AR are very important processes that span other important organizational units, and have a tremendous impact on treasury and solvency. Hence, in competitive environment it is the task of a SMB to gain efficiencies in order to remain profitable and continue as a going business concern. One such efficiency can be found in the automation of AP/AR processes. As such, this paper provides an overview of cash management strategies, common pitfalls and problems with manual processes and AP/AR systems, and the benefits to cash management through automation of the AP/AR processes. The paper further provides guidance on the desired attributes of an automated solution, systems analysis requirements, and steps for implementing an automation solution.

Full text

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SMB AUTOMATION OF ACCOUNTS PAYABLE AND ACCOUNTS RECEIVABLE
Cyril H. Mayes, ERP Business Process Specialist, Selmer, TN, USA
John N. Dyer, Georgia Southern University, Statesboro, GA, USA
ABSTRACT
While many large organizations have streamlined their business process end-to-end with entity resource
planning (ERP) systems, many small and medium size businesses (SMBs) have yet to even consider
(much less implement) ERP systems due to the enormous cost and complexity. The monumental
challenge that SMBs often face is that financial processes revolving around cash management, relating
specifically to accounts payable (AP) and accounts receivables (AR), are too long and resource intensive.
SMBs also tend to stretch other resources thin when forced to focus on the completion of financial tasks
rather than focusing on their core competencies. Nevertheless, cash management strategies related to
AP/AR are very important processes that span other important organizational units, and have a
tremendous impact on treasury and solvency. Hence, in competitive environment it is the task of a SMB
to gain efficiencies in order to remain profitable and continue as a going business concern. One such
efficiency can be found in the automation of AP/AR processes. As such, this paper provides an overview
of cash management strategies, common pitfalls and problems with manual processes and AP/AR
systems, and the benefits to cash management through automation of the AP/AR processes. The paper
further provides guidance on the desired attributes of an automated solution, systems analysis
requirements, and steps for implementing an automation solution.
Keywords: ERP, SAP, Automation, Accounts Payable Automation, Accounts Receivable Automation
1. INTRODUCTION
Tougher competition in the marketplace is generating the need to better optimize resources, improve
profitability and keep customers satisfied. Companies are increasingly implementing ERP software
solutions to improve operations and provide faster customer response (Copley, 2015). ERP systems are
composed of management software suits designed to integrate business processes across the
enterprise. Although early ERP focused only on financials, modern systems span the entire enterprise
including procurement, fulfillment, production planning, inventory, warehouse management, human
resources, customer relationship management, financials, and governance, among others. Unfortunately,
most ERP systems are the domain of large organizations, costing millions of dollars to implement, scores
of support staff, and an enormous technology infrastructure. Additionally, most large organizations have
expert employee talent assigned to direct and support each separate area of the business process.
Unfortunately, most current literature is aimed at research regarding implementation and management of
large enterprise ERP systems, while little research is focused on small or midsize businesses (SMBs) or
SMB automated solutions.
Entrepreneur Magazine (Small Business at a Glance, 2005) and Gartner Research (2012) define small
businesses as those with fewer than 100 employees, and does not include home-based businesses or
small-office/home office (SOHOs) with less than 10 employees. Midsize businesses are those with 100 to
999 employees. In terms of annual revenues, small business are often defined as those with annual
revenues less than $50 million, while midsize businesses are those with $50 million but less than $1
billion. In 2007 the U.S. Census Bureau (2008) estimated that approximately 1.27 million businesses
were SMBs. As shown in Table 1, these SMBs together provide over 53 million jobs, with annual payroll
over $2 trillion (average $1.58 million per firm), and gross annual revenue of over $10 trillion (average $8
million per firm). Small business alone (including firms with fewer than 10 employees) employee over half
of all private-sector jobs, producing 44.3% of U.S private payroll and 50% of nonfarm private gross
domestic product, accounting for 52.6% of all retail sales, 46.8% of all wholesale sales, and 24.8% of all
manufacturing jobs. In contrast, large businesses (1000 employees or more) account for just over 11,000

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firms, providing approximately 94 million jobs, with annual payroll of $4.4 trillion (average $4 million per
firm), and annual revenues of $10.6 trillion (average $953 million per firm).
TABLE 1. SMB STATISTICS
Firm Size
(Employees)
No.
Firms
No.
Employees
Payroll
(100,000)
Revenue
(100,000)
10-19
644,842
8,656,182
$292,088,277
$1,395,498,431
20-99
532,391
20,922,960
$768,546,555
$3,792,920,977
100-499
88,586
17,173,728
$68,6862,018
$3,612,050,221
500-749
6,094
3,695,682
$152,059,022
$800,475,934
750-999
2,970
2,561,972
$109,833,289
$636,199,229
Totals
1,274,883
53,010,524
$2,009,389,161
$10,237,144,792
In contrast to large enterprises with an infrastructure to support massive ERP implementations, SMBs
typically focus on their core-competence and the activities directly related to revenue generation, profit
maximization, and/or cost reduction. While maintaining and growing the organization is the primary focus
of any business, essential tasks such as record keeping, reporting and managing transactions bring
challenges that are completely separate from the goals of growing the organization. Many SMBs
complete these tasks manually and with suboptimal spreadsheet solutions, while those relying on
automated business solutions are more successful at managing the financial challenges that help them
stay organized, report accurately, and manage their finances (Castellina, 2014). The monumental
challenge that SMBs often face is that financial processes revolving around cash management, relating
specifically to AP/AR processes, are too long and resource intensive. SMBs also tend to stretch other
resources thin when forced to focus on the completion of financial tasks rather than focusing on their core
competencies. SMBs often have smaller staffs consisting of employees performing multiple different
functions, and their information system infrastructure (if any) is largely exemplified by several disparate
electronic systems, or legacy systems.
Financial integration with other key business processes is by far one of the most significant selling points
for automating financials and cash management in the business processes (Gordon & Dyer, 2014). Two
primary business processes are depicted in Figure 1; Procurement (Purchase-to-Pay, PTP) and
Fulfillment (Order-to-Cash, OTC), wherein finance is cross functional over the final integration points
intersecting with materials management (MM) and sales and distribution (SD) processes. With the PTP
and OTC process the company is either releasing payments to a vendor for receipt of goods or services,
or receiving payments from a customer.
FIGURE 1. PTP AND OTC PROCESSES
In either of PTP or OTC, a multitude of documents relating to purchase orders, invoices and goods
movements are created, received and/or distributed (within and outside the business), while related
financial transactions are processed and recorded in AP/AR. Collectively, the AP/AR transactions impact
cash flows. Subsequently, the management, tracking, controlling and recording of cash flows directly

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affect business decision making, while also creating requirements for legal and regulatory reporting. As
illustrated, one of the major features of process automation is its ability to integrate finance with other
business key processes.
Cash flow management is not the sole domain of large businesses. Aberdeen Group’s 2014 Excellence in
Financial Management Survey (Castellina, 2014) asked businesses to indicate their top-two challenges
as they attempt to manage their business. Figure 2 displays the responses across the survey questions. It
is clear that the top three rated responses relate to financial management tasks that are ripe for solutions
commonly provided by AP/AR automation.
FIGURE 2. GROWING BUSINESS FINANCE CHALLENGES
What is common among SMBs is that due to their relatively smaller size, they have different information
technology and information system (IT/IS) challenges and they are often highly constrained in budget and
staffing needs for IT/IS resources and staff (Castellina, 2014). Although there is no available data
regarding SMB demographics, it stands to reason that a significant number of SMBs do not possess staff
with the knowledge, skills or expertise (KSEs) regarding IT/IS infrastructure, automation, or ERP
implementation, as do their counterparts. It can also be assumed that many SMBs simply do not possess
the suite of KSEs or education in ERP, automation or integrated systems.
Nevertheless, in a competitive environment, it is the task of a SMB to gain efficiencies in order to remain
profitable and continue as a going business concern. These efficiencies can be gained by maximizing
profit using the same level of resources, maintaining current profit by minimizing resource utilization, or
optimally, by maximizing profit using minimum resources. Over the decades various IS automation
solutions have been successfully implemented to help manage, monitor and control business processes,
both within and across functional areas of the organization, with a goal toward maximizing revenue,
minimizing costs, and gaining a competitive advantage. These systems span the spectrum from
standalone software used to support specific functional areas (sales, purchasing, accounting, etc.) to fully
integrated ERP systems that cut across business processes. Although the systems may be disparate or
integrated, what they all have in common is the automation of key business processes necessary to
increase efficiency within the organization.
2. CASH FLOW MANAGEMENT
There is the popular saying, “cash is king.” It is for certain that a business’s solvency is dependent on the
strength of its working capital and effective cash management. Working capital is the cash a company
has available to utilize for the ongoing operations (Jordan, Ross, & Westerfield, 2008), and is used for
payroll and payables to vendors. These payments are necessary to ensure workers will continue to
perform their jobs and vendors provide the inventory need to generate revenue. Consequently, cash

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management is a vital function of any business. It is significant to the success of the organization to
perform proficiently the process of cash management (Cforia Inc., 2006).
Four main processes involved with cash management include; 1) estimating future cash receipts, 2)
estimating future cash payments, 3) preparing a budget and limiting spending to the budget, and 4)
promptly comparing budget to actual cash flows (Jordan et al., 2008). With these four cash management
process in mind it become obvious that tracking cash flows (comparing actual to planned) to manage a
budget is an important business function. The more competent the budget process is the better the
organization is with cash management.
As to the importance of cash flow management, Aberdeen Group’s April 2012 Treasury and Payment
Survey (Pezza, May 2012) asked companies to rate the impact (from “no impact” to ‘high impact”) on
treasury strategy across a range of operational and strategic business functions. Table 2 reflects the
results as related to cash flow attributes. Note the relatively high percent of high impact related to AP/AR
strategies; 32% versus 49%, respectively. Unfortunately, although a company may view these strategies
as high impact, many often fail to implement an optimal or effective AP/AR strategy, due to failure to
automate AP/AR processes and thus reap the many benefits from automation.
TABLE 2. HIGH IMPACT AREAS ON TREASURY STRATEGY
Attribute
% High Impact
Cash Flow Forecasting
54%
Accounts Receivables
49%
Accounts Payables
32%
Short-term Borrowing to Cover Deficits
25%
Short-term Investment of Surplus Cash
15%
Aside from an organization’s focus on specific business processes, many top-level management
discussions and decisions are made in regards to sources and uses of enterprise cash, with a focus on
strategic elements related to funding decisions, risk management, and capital investment. All too often
though these discussions are made without regard to the direct management of cash flows, which
focuses on effective management of operational cash, in the form of AP/AR strategic management
(Corcentric, 2014a). Historically, AP/AR processes have been relegated to the back-office as a second-
tier process that simply supports the procurement and fulfillment activities of the organization.
3. AP/AR STRATEGY
One simple element of an optimal AP/AR strategy, simply stated, is to “pay late and collect early,” yet
there are myriad reasons to optimize the strategy. In the AP case a firm is asking about “what cash is
going out, when, and what the potential for savings is?” In the AR case a firm is asking “what cash is
coming in, when, what’s the cost of collecting accounts, and what’s the risk that cash will not come in?”
Thus, maintaining optimal liquidity is the key the effective cash management, and effective cash
management is a function of optimal AP/AR strategies. Unfortunately, since these questions look at
timing of cash flows rather than day-to-day operations, many organizations relegate these tasks to a
treasury responsibility with no real tie-in to overlying business processes (Corcentric, 2014a).
Each organization is unique in many senses, such as the size of the organization, the business
classification, number of vendors and customers, the number of transactions within the PTP and OTC
processes, organizational budget and working capital, employees skill sets, etc. But, what they have in
common is financial management requirements, of which an effective AP/AR strategy is a part. AP/AR
are also related and tied together in terms of financial management. Although these two business
processes are on opposite ends of the cash cycle they are related in terms of working capital
management and have many fundamental similarities.

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Although AP/AR are often discussed separately, the two are indirectly related in the sense that their
efforts together determine the operational cash flows, and cash flow is the core of a liquidity strategy.
Because of the nature of the AP/AR processes, effective cash flow strategy requires constant visibility
into the state and status of the cash flows (Pezza, February 2012). Hence, managing cash flow effectively
is crucial in terms of maintaining the organizations solvency. As such, when inefficiencies exists within the
realm of AP/AR, an organizations ability to measure its current financial state or to accurately forecast its
financial position is inhibited.
Back office functions like AP/AR are necessary, but they can be expensive in terms of needed resources
(Klassen, 2009). Accordingly, a solution is to understand the process and proposition of implementing
automated AP/AR systems. While modern ERP systems integrate all processes seamlessly, SMBs most
likely look toward automation software vendors for similar, but less integrated solutions. Many accounting
information system (AIS) vendors provide a foundational solution for an organization’s information system
by employing best practices to manage complex cash flow system processes and apply the current
technology to streamline back office best practices as it relates to minimizing PTP and OTC costs.
Unfortunately, an organization that processes thousands of orders and/or invoices and executes
thousands of matching AP/AR transactions is often unable to affect an optimal AP/AR strategy without the
use of automation. As such, understanding and adopting industry best practices in automating the AP/AR
processes can add significant value to an organization, particularly in the PTP process and the OTC
process. The potential of automation adding value to the PTP and OTC processes becomes evident as
an organization strategizes to manage working capital and to optimize the cost of back office operations.
Business enterprises consider it is increasingly important to maximize return on capital and to control
back office expense in order to compete in their industry (Cherrington, Dunn & Hollander, 2005). This is
why it essential for many SMBs to implement an automated AP/AR processes in order to achieve the
aforementioned goals.
Hence, organizations should use the best techniques to estimate cash receipts and payments. One of the
benefits of an automated system is that it capable of gathering all of the organizations’ cash inflows and
outflows transaction into one system to be utilized to fortify any specific business process of the
organization (Hollander, 2005). The cash management process is improved with best practices when it is
able to take advantage of the functionalities of an automated system in several of the following ways
including prompt recording of transactions, the capacity to have all transactions that involve cash flows
included in budgetary estimation, and having budgetary estimations that are readily available and
accurately comparable to actual cash flows.
4. AUTOMATION OVERVIEW
Manual AP/AR paper-based systems have plagued accounting departments with high labor and
transaction costs for decades. Accounting departments relying on manual systems have found that
increasing staff does not solve the inherent problems of unrecorded, duplicate, inaccurate, unauthorized
or misdirected transactions, or reduce time to process transactions. Furthermore, these departments
often struggle to meet their organization’s basic need for visible, timely, and accurate financial reporting
and to maintain effective internal control (Furth, 2005). Automated paperless systems have become a
necessity for businesses. As Blaylock (2005) stated, “Going paperless is no longer an option, but must.”
With the trend of moving in this direction, it is imperative to go paperless in order to keep up with the
competition (Klassen, 2009).
Tyagi’s (2013) research found that 39% of business respondents cited their most pressing concern in the
manual AP/AR processes was difficulty finding or managing paper-based documents, while lack of AP/AR
visibility was cited by 45% of respondents as their top-most market pressure. While Tyagi’s research
focus was comparing companies categorized as “best-in-class,” “industry average,” and “laggards,” the
finding reflect that the best-in-class companies engaged in automated AP/AR were 189.5% more likely
than laggards to offer support for e-invoicing through the PTP process, helping both vendors and
customers “get on-board with electronic invoice management and expediting the workflow by automating

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the sub-process across the entire chain.” The result is significant improvement in strategic cash flow
management resulting from myriad AP/AR managerial tasks. Other finding by Tyagi include; 39% were
unable to reconcile accounts/payments in a timely manner, 35% were unable to handle AP/AR exceptions
in a timely manner, 22% were unable to capture early payment discounts, 19% experienced vendor
demands to shorten payment times, 62% need expedited financial information delivery, 31% need to
manage the growing volume of transactions to improve their financial management processes, and 39%
rate the level of challenge across the PTP process between medium and high.
Ball’s (2014) research further distinguished between companies categorized as “leaders” and “followers,”
in regards to keys to success driving automated AP/AR. These keys include electronic transactions
(invoicing and orders), electronic process automation enablement (automated settlement information
capture), and enabling technologies to improve efficiency and visibility to the processes. Several of Ball’s
findings are reflected in Table 3. While these findings may include many companies with complete ERP
solutions, it is obvious the degree to which automation provides a more optimal solution to AP/AR
processes and cash flow management.
TABLE 3. AP/AR METRICS FOR LEADERS VERSUS FOLLOWERS
Accounts Payable
Leaders
Followers
Days to Process & Invoice from Receipt through Settlement
7.3 days
11.3 days
% of Invoices Paid in Time to Secure a Discount
59%
14%
Annualized Savings when Capturing an Early Payment Discount
11.7%
6.3%
Average Cost to Process and Invoice from Receipt through
Settlement
$4.34
$21.31
Accounts Receivable
Leaders
Followers
Days Sales Outstanding
26 days
48 days
% of AR Past Due
5.9%
15%
Days for Payments to Clear
3.3 days
10.2 days
Full Time Equivalents (FTEs) in AR Department
7 FTE
17.5 FTE
A true recognition of the value of automated PTP and OTC business processes provide are illuminated
when the transaction volume is large and the pressures of reducing cost coexist (Hollander, 2005).
Historically the solution to handling large volumes of transaction in the AP/AR departments would be to
increase the headcount. However, to increase headcount conflicts with cost reduction goals. This is
evident as the hiring of new employees creates increases in total wages and other overhead costs.
Conversely, management’s historical preferred cost cutting methods has been to reduce headcount,
especially in the back office departments. The back office departments such as accounting and
purchasing are often viewed as not having equal value as those revenue generating functions of the
organization such as sales and production (Kjaersgaard, 2011). Consequently, reductions in staff in these
departments are often a starting point for cost reductions. Needless to say that with large volumes of
transactions occurring in both the AP/AR related processes, it becomes difficult to cut cost with staff
reductions in those departments.
Technology has provided alternatives to both scenarios discussed as challenges. Technology provides
the capacity to handle enormous volume while simultaneously optimizing the total number of worker in
the AP/AR processes. Although technology offers grand benefits in terms of working with large volumes
of transactions at a reduced cost, there are challenges in implementing new technology. Unfortunately, an
AP/AR automation process implementation may not be a straightforward. It would be much simpler if a
system could be implemented wherein all vendors and customers possessed the same capabilities to
process electronic purchases orders, sales orders and e-invoices. It would be all the more straightforward
to implement automation technology if current staffs had the skills to work within the newly implemented
automated system. The system implementation would be less complicated if it could be designed to
handle any exceptions and to maintain a three way match and all other policy requirements needed to
occur to make and receive automated payments. It is generally understood that the implementation of any
new system rarely occurs without the aforementioned challenges. However, the end result is that
automated AP/AR systems have tremendous benefits, and if major implementation and process

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challenges are mitigated in the design phase then many benefits are obtainable (Gatttiker & Goodhue,
2005). Furthermore, technology through automation enables business to perform real-time accounting,
and real-time accounting allows management to quickly adapt to opportunities and address problems
(Klassen, 2009).
The attributes of automated systems can make the business much more effective. Automation is an
important way to move towards a more effective accounting process within AP/AR. Automating AP/AR
makes the process more efficient and more reliable while it reduces the costs. Automation has become a
need for business process, especially for a company that has huge volumes of data and lots of
transactions (Dunphy, Shimkus, & Prestigiacomo, 2008). As it is the goal of these departments are to
reduce costs while simultaneously complying with strict process controls and to provide accurate and
timely financial reports, many best-in-class organizations have streamlined the invoice processing via
automation (Cherrington, Dunn, & Hollander, 2005). Automation not only reduces the cost of handling
large numbers of transaction but the cost of the tedious tasks involved with review, coding, exceptional
handling and the approval processes.
Many software vendors offer automation solutions ranging from completely integrated ERP systems to
process specific systems like AP/AR. While SAP is the single largest vendor of large enterprise ERP, they
also provide solutions for SMBs, like All-In-One ERP or BusinessByDesign. Additionally, deployment of
the solutions range from internally installed client-server systems, to those offered on-demand like cloud-
based or Software-As-A-Service (SaaS) from third-party vendors. A quick Internet search of automated
AP/AR produces a large number of software vendors specifically catering to SMBs and needs for
automated AP/AR systems. These solutions are also termed financial supply chain management (FSCM)
systems. Regardless of the solution chosen, an FSCM will have the capacity to effectively automate
AP/AR system, and as a result the automation allows for the managing of cash flows to maximize the ROI
on working capital. It should also reduce back office cost through automation. Both scenarios increases
ROI as efficient cash management and reduction in cost can lead to an increase in a company’s bottom
line (Furth, 2005).
With automation of AP/AR processes, potential cost reductions are prevalent. As organizations utilize
FSCM systems they are positioned to take advantage of the cost savings offered from utilizing an
automated processed. With FSCM solutions the accounting department is able to capture functions to
eliminate as much manual data entry as possible (Kjaersgaard, 2011). Organizations are able to pull
information from invoices, sales orders, purchase orders, shipping documents, inventory/warehouse
documents and vendors’ and customers’ master files. Further, automation allows for invoicing to be
captured and handled through a combination of imaging/OCR technology and electronic invoice
integration. Consequently, managers can culminate all of process functionalities into a practical workflow.
With workflow management there are the capabilities to handle transactions involving multiple personnel
across several functional areas without enormous amounts of paper exchange and unnecessary
communication. Additional capabilities include directing customer/vendor invoices for approvals,
corrections, coding, or to resolve issues involved with disputes. Automated workflow also expedites the
validation of data, activation of exception alerts, and forwarding of documents to the appropriate
personnel (SAP, 2011). This effectively streamlines the AP/AR processes and ensures critical tasks are
performed correctly and efficiently. Automated solutions also provide access to all order/invoice-related
information so activities can be monitored and data can be analyzed. When necessary, users are able to
access the original order/invoice details in question. It is also important to track workflow tasks such as
what actions have been taken, when and by whom. This allows organizations to troubleshoot issues more
cost effectively (SAP, 2011).
In a study by the Aberdeen Group, organizations reported between 40% and 60% savings by
implementing the right automation solution. Although results can vary based upon the package, in many
cases the investment pays for itself in a matter of months (Klassen, 2009). Recall, the AP process of
paying an invoice is the final task of the PTP process, while the AR process of the collection of cash is the
final stage of the OTC process. Since cash management is integrated with other functional processes,
both processes involve various other stakeholders. Consequently, savings from the automation may not
be limited to the AP/AR department. An increased visibility with the automation solutions allows vendors,

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customers, sales and purchasing personnel to have access to the details of the order and invoices
throughout the process. With the visibility of these documents early in the process by the various
stakeholders, issues that would delay processing and affect cash management can be detected and
mitigate with minimum delay. Klassen (2009) estimated that manual AP processing cost per invoice was
approximately $29.83 with an average of 20 days to process, while automated AP reduced the
processing cost to $2.00 with an average of 8 days to process. Some of the cost associated with manual
AR process was attributed to lockboxes per-keystroke charges banks levied for their services. Even
beyond this cost, there can be significant time delays caused by errors on the part of the AR staff keying
in the financial information. The Aberdeen Group survey also discovered that organizations with
automated AR experienced 71% lower past due ARss, 80% faster payment clearing times, and 70%
lower invoice volumes requiring manual intervention (Klassen, 2009). The aforementioned automation
strategies point to significant cost savings through labor cost alone.
Additionally, an automation solution reduces the staffing requirement without sacrificing the number of
transactions required to handle the AP/AR responsibilities. Consequently, the ability to handle a large
number of transactions with a reduction in staffing requirements lowers per transaction cost. Further,
within the workflow environment, automation allows the system configuration options to provide early
alerts of items that will require exceptional handling. Automation of the workflow thus requires less
staffing and provides personnel with options to focus on error and exception handling resolutions early.
As such, automation has the benefit to reduce AP/AR processing cost and time.
One main reason of integrating an automated AP/AR system with FSCM functionalities is to resolve the
reporting of cash management issues previously mentioned. This kind of automation is cable of
establishing short range and medium range budgets. In fact there are two recommended solutions to
fortify the cash budgetary process in an FSCM; cash management (CM) and cash budget management
(CBM). While CM takes a short term view, CBM deals with medium-term and long-term liquidity
developments. The concept of obtaining deeper insight into cash balances, as well as the ability to be
more precise when matching the sources and uses of cash, improves forecasting which enables
management to make profitable decisions - the primary goal of cash management (Cforia Inc., 2006).
Utilizing AP/AR automation allows software interfaces that are needed to perform real-time analysis of the
organizations current cash cycle position and to eliminate the manual reconciliation process (Dunphy et
al., 2008).
Also, the management of the cash cycle position is improved with FSCM automation. The cash cycle is
the flow of cash that begins with the outflow of cash (payment of inventory) and ends with the inflow of
cash (receipt of cash when the inventory is sold) (Jordan et al., 2008). FSCM automation leverages the
features that support optimizing the AP period and Days Sales Outstanding (DSO) (Dunphy et al., 2008).
The AP period and DSO are two important components utilized in managing the cash cycle. Typically, the
time frame for cash inflows will lag behind cash outflows. This short term gap is filled either by borrowing
or holding on to cash instead of investing the cash. Both methods imply an interest expense (Jordan et al.
2008). The AP period is the time between the receiving of inventory and the payment made for the
received goods. DSO is the number of days an AR is an open item (has not been paid) in the financial
system. Therefore the cash cycle is improved as to extend the AP period (number of days before making
payment) and to reduce the DSO (number of days in AR) (Westerfield, 2008).
As the AP/AR process is automated the FSCM solutions for CM and CBM are able to extract data from
vendors and customers master data (i.e. payment terms and banking information) and also extract data
from transactional documents (i.e. payment dates and payment receipt dates) of AP/AR transactions to
make real time calculations to estimate the cash cycle. In accordance, to formulate 30-90 days budgets to
determine the organization’s working capital position, the cash inflows and outflows estimations are
fortified as the CM and CBM are able to gather actual information concerning scheduled payments and
receipts. With this information an organization can more readily perform budget/actual analysis. This
analysis will dictate the amount of future cash holdings and short term borrowing needed with the goal of
minimizing interest expense. If net cash flow actual balances are less than estimated the organization can
proactively determine how to optimally raise the cash needed for operations as to minimize interest
expense. If net cash flow actuals are greater than estimated the organization is able to reduce interest

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expense by less borrowing or keeping more cash in interest bearing accounts. Budget/actual reports are
easily updated and utilized to determine cash requirements as explained above (Gatttiker & Goodhue,
2005).
Automated FSCM systems automatically execute AP/AR processes at the end of the PTP or OTC
processes, without staff intervention. If these processes are done manually it may take several days (post
actual transaction date) before each AP/AR is input into the system. Consequently, any system
calculation done to determine cash outflows and inflows for the next 30 to 90 days may be impaired by
the lack of timeliness of the posting (due to manual system) to the AP/AR sub-ledgers. The delays
primarily occur when vendor invoices and customer orders await manual input into the system. Those
types of process delays impair cash management reporting (Cforia Inc, 2006). The cash inflows and cash
outflows are technically scheduled to occur within a specified time frame, although they may yet to have
been entered into the system. Consequently, the process to attempt to estimate cash flows becomes
problematic. The promptness of automated transaction recording allows for a more fortified cash
management reporting process (Furth, 2005). With an FSCM automated system, cash flow schedules are
constantly updated with every completed transaction of goods shipment and goods receipt.
Additionally, FSCM solutions often provide for AP/AR netting. When an organization is both a customer
and a vendor, it may choose to offset open receivables against open payables items. Netting agreements
add trading partner terms as well as deploying company controls. A selection program automatically pulls
information from receivables and payables taking into consideration discounts, late fees, and withholding
taxes prior to determining the final netting amount. A review process and trading partner approval afford
further verification to support the netting event. The result is to increase efficiency and reduce operational
costs by consolidating transactions in the AP/AR systems, thus enabling netting of unapplied cash and
providing an audit trail of netting transactions
5. AP AUTOMATION
Common pitfalls of non-automated AP systems include bottlenecks created by manual processing, lack of
visibility of AP accounts, delayed reconciliation of accounts, and increased per-invoice costs, much of
which results from mounds of paper and associated delays in information and processing. As reflected in
the aforecited surveys, the primary challenge for non-automated organizations is the difficulty finding or
managing paper-based processes, and the many resultant problems. Mistakes are common due to data
transcription and inattention to detail, while manual input is very time consuming. Communication with
vendors can be hindered by the nature of mail or fax, and ineffective communication with vendors often
results in non-standard POs and invoicing formats, and incompatible workflows. Additionally, invoices
often become lost, payments are delayed, and relationships with vendors are damaged. Others estimate
that manual processing of AP invoices can take up to 40 days and cost twenty dollars or more per invoice
(Corcentric, 2014a). Hence, removing paper from the process is one of the greatest benefits of an
automated AP system, as it reduces bottlenecks and the per-invoice processing costs, reduces delays in
vendor payment, and can eliminate many of the previously discussed problems.
The most common automated AP solutions include e-invoicing, scanning, fax-to-scan, workflow
management, worklists, online tracking, e-reporting capabilities, and e-payment services to the vendor,
among other characteristics. Modern automated AP systems work to integrate best-practices to
streamline the PTP procurement process, including features for duplicate invoice verification,
customizable automatic invoice routing, straight-through processing for invoicing matching, and 3-way
matching (Concentric, 2014a). This can be accomplished by streamlining purchase order requisitions with
electronic purchase orders, eliminating paper invoices in favor of an e-invoicing system, automating
document processing via electronic workflow processing, integration with vendor ERP and self-service
portals, and more efficient payment processing.
An automated AP system creates the payable instantly when the e-invoices are matched with the
purchase orders and receiving documents in the system, without human assistance. A critical function of
FSCM AP automation is the ability to use the vendor master data to schedule payments. The details of

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discounts for early payments and the tradeoffs for paying late and not taking the discount can be done
promptly with the FSCM component. If vendor’s invoices are processed manually delays may occur due
to the AP clerk’s workload. As a result the appointed discount period given by vendor may have elapsed
before the invoiced is processed for payment.
Automation allows a business to more readily take advantage of favorable payment term discounts, and
to better manage capital by avoiding premature payment when extended payment terms are more
favorable to capital budgeting. Clerks often take advantage of discounts when it is not prudent to do so,
such as when the interest bearing cash account would yield a higher return in lieu of early payment
discounts. An FSCM automated system can be programed to make real-time calculations as soon as the
e-invoice is confirmed with a 3-way match. The cash discount is to be taken if the discount is greater than
interest earned on the cash if left in the interest bearing account. If it more prudent to take the discount
then the invoice would be schedule to be paid accordingly. If it is not effective to take the discount than
the invoice payment would be scheduled to be made at a later time within the vendor’s terms. With each
transaction involved with AP, this scheduling feature optimizes the account payment period, the
organization’s cash cycle and the budget of cash outflow estimates (Klassen, 2009). It is also estimated
that an automated AP system can drive the cost down to around five dollars per invoice and reduce
processing time to less than a week (Concentric, 2014a, Tyagi, 2013). Other advantages include the
elimination of costly and time consuming manual tasks, the removal of processing bottlenecks, a secure
audit trail, more accurate and timely analysis of cash flow, and improved vendor visibility throughout the
supply chain (Concentric, 2014a).
There are two keys to a successful automated AP process. The first key is to optimize automation through
integration with other automated solutions, which may or may not be a part of a software vendor’s
solution, and may or may not be possible with a company’s legacy systems. A more optimal automated
AP solution would involve a complete PTP and inventory management system. Together, these
integrated systems provide a complete solution for purchase order requisition process streamlining
(approval, creation, submission), e-invoicing, invoice virtualization, and invoice processing including
payment approval workflow (review, match, approval, payment).
The second key is integration with automated vendor systems. Additional potential system enhancements
through integration with a vendor’s system include automatic invoicing through an invoicing portal, and
automation of vendor payments via automated clearing house (ACH) payment processing or automated
check mailing services. Unfortunately, the problem most often exists on the vendor side, from those
companies that have not yet adopted electronic business systems. In this case, sending electronic POs
and automated payments to the vendor is a good start, but the ultimate success will only be achieved
when the vendor is capable of managing electronic orders and can invoice electronically.
6. AR AUTOMATION
Pitfalls of non-automated AR systems are similar to those of AP systems. Mounds of paper work are
created across the processes of taking sales orders, matching orders to goods movements, shipping
order, issuing invoices, handling exceptions in orders and payments, the inability to easily and quickly
determine and reconcile delinquent customer accounts, delays in receipt of payments, inefficient manual
posting and depositing of payments, payment processing fees, inability to offer optimal payment terms
and credit conditions to good customers, among others issues. Other problems exist is terms of data
entry errors and efficient communication with customers. Delays and inaccuracies in invoices and
payments also affect cash flows required in the AR process. Again removing paper while accommodating
e-payment is one of the greatest benefits of an automated system.
Manual processing also tends to increase the labor and time required to reconciling AR accounts, creates
large amounts of unallocated cash, making it difficult to close month-end financial documents, and often
impact customer relations due to posting delays and inaccuracies. Companies are also driven to improve
their billing and payment processing systems by the need to reduce days sales outstanding (DSO) and

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overall costs of receivables processing. Poor sales ledger data quality due to open items can harm a
company’s reputation and its bottom line (ReadSoft 2015).
The FSCM automation of AR enhances the scheduling of payment receipts. To process customers e-
invoices via FSCM they are processed with each shipment (or completion of services), wherein the FSCM
system then can gather data from the customer master data and transactional data repository to estimate
cash inflows and to minimize DSO. As a sale is formalized upon the shipment of goods, and an e-invoice
is sent to the customer. Simultaneously, there is a scheduling of the planned receipt of the payment from
customer via the FSCM and the customer’s master data payment terms. With the prompt invoicing
system, effective estimations of cash inflows can be calculated to prepare short and medium range cash
management budgets. Payment terms associated with each customer’s master data are used to estimate
payment cycle-times. Additionally, disputed days sales outstanding (DDSO) due to billing disputes are
often reduced as data input errors are mitigated by the automation. Solutions for managing billing
disputes are resolved quickly as the customer receives invoices earlier than when manually processed
and is able to make claims of any perceived dispute. Hence, both the DSO and DDSO can be
significantly reduced. Fortifying the scheduling of payment receipts and reducing DDSO optimizes DSO,
as well as optimizes the business’s cash cycle and the budgeting of cash inflows estimates (Gatttiker &
Goodhue, 2005). AS FSCM transactions are best captured with automation, notably, timely information is
received due to automation of AR and hence improves the cash management process.
As FSCM automation is adopted by more customers, these same customers are wanting their systems to
integrate with their vendor’s system. An automated AR system can accelerate order-to-cash by
streamlining either or both the ordering and payment systems, which have a direct impact on cash flows.
The key to a successful AR strategy is to apply technology and automation in as many places as possible
(Corcentric, 2014b). Key features of automation include e-POs, automated validation of incoming
invoices, and automatic archiving and reporting of PO and invoice data. Regarding AR invoicing, typical
automation provides for e-delivery of invoices across multiple channels (fax, email, web-portals, EDI), e-
dunning solutions, and archiving and reporting of AR invoice data. In regards to payment solutions, typical
automation provides for ACH and credit card payment, management of credit and collections, and
automated reconciliation of AR.
By reducing manual processing of invoices and payments, eliminating bank fees, allocating cash more
quickly, and improving visibility and reporting of the process, AR processes operate more efficiently, cost-
effectively, and provide customers better service. (ReadSoft, 2015). Additionally, manual work and errors
are can be reduced by automating all of the data capture, cash applications, and exception handling,
while DOS, unallocated cash and open items can be decreased.
Automating AR also results in shorter cycle times overall, and lower cost, just as automated AP systems
do. Data from APQC showed that 100% of top-performing industrial products organizations process all
AR accounts electronically. Conversely, the bottom performers receive receipts electronically or
automatically only 37% of the time. Consequently, as the percentage of automated AR systems
increases, the cycle time from transmission of invoice to receipt of payment can be expected to decrease
(Kaigh, 2015).
Increasingly, many customers are opting to do business with partners that offer automated processes,
even favoring higher product and/or service costs over issues related to vendors with manual systems. In
the author’s own experience as an SMB owner of a multimillion dollar retail/wholesale organization, two of
sixteen of the business’s vendors received over 80% of annual POs due to the vendor’s complete
automation of the order processing system; from order to invoicing and e-payment processing. Although
the two vendors were not always competitive on pricing, their systems were straight-forward and
seamless, and easily integrated with the author’s business’s information system. Effectively, 12.5% of
vendors were responsible for 80% of the business’s AP; approximately $5.6 million annually.
While it may not be easy for an organization to get all of their customers to participate in the automated
AR system, it is still worthwhile to promote it. But, an organization must also provide e-invoice
presentment with payment and an outline of data elements necessary for the customer to post into their

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automated platform. Additionally, supporting documentation must be provided for invoice review (within
the same platform) and facilitate invoice detail matching with the payment details entered by the customer
while payment is made. This will allow customers to use the data to generate a detailed AP document for
import to reconcile their AP and settlement data. By implementing an automated AR solution that
accommodates customer requirements, and by providing e-payment, organizations can realize new levels
of operational efficiency while enjoying significant cost reductions. The ultimate benefits to the SMB
automating the AR process includes fewer billing errors and significant reductions in billing disputes,
increased receivables process control, and greater workflow visibility to monitor internal operating
efficiencies.
7. IMPLEMENTATION
Regardless of the system, there are five major components to consider when optimizing the
implementation of AP/AR with an automation solution. The first component is a system to store, retrieve
and auto-populate necessary master data for integrated processes, including vendors and customers.
Master data is required in various PTP and OTC processes and feed the AP/AR reconciliation accounts.
The second component is an integrated financials module. This is essential for AP/AR netting, liquidity
forecasting and cash budget management purposes. The third component is incorporation of an e-
invoicing module for both AP/AR. Many solution vendors provide such functionality and many are
compliant with modern and some legacy systems. Dolphins and Esker are two popular vendors providing
AP/AR e-invoicing solutions. The forth component is a workflow management module required to
interface with the automated e-invoicing solution. This workflow processes for AP can exit from semi-
automated which would include scanning invoices using optical character recognition (OCR) and manual
triggering for workflow to continue with 3-way or 2-way matching to make payment (Kjaersgaard, 2011).
AR workflow processes for automation/electronic invoicing solution may involve invoices faxed, emailed
and/or mailed based on customer preferences. However a fully automated invoicing workflow is achieved
through a single electronic data interface (EDI) stream from the internal system to the vendor and
customer. All transaction and approvals are completed using system master data, configurations and
reporting process. Automation then allows for the making or receiving payments via the house bank
system, or alternative payment forms including ACH, electronic funds transfer (EFT)/wire, credit card
payment, and paper checks. The complete accounting system integration is the final component. The
financials module is capable of uploading and receiving data from the AP/AR system utilized by the
determinate for the organization. The master data for vendors and customer within the system is crucial in
providing guidelines for the configurations of the AP/AR to automation process. With an optimized vendor,
customer and material master data base the AP/AR process can be fully automated needing little
assistant from the staff. The cash receipts, cash payments and reporting can be fully automated if the
accounting information system is optimized to provide the pertinent master data upstream to perform
transactions and also able to capture data to post all transactions for reporting purposes (Kjaersgaard,
2011). Within the solution space including the above components, sales and distribution as well as
material management modules can be fully integrated to fully automate the AP/AR process.
Choosing an automation solution that meets a specific business’s requirements enable a much smoother
implementation. If the solution is provided for a specific industry, then a business will not have to custom
design a solution. Customized solutions are time consuming to implement and add unnecessary cost.
One of the top reasons ERP implementations fail is because the software doesn’t meet basic industry
specific business requirements. However; purchasing an automation solution is only half the battle. A well
designed implementation plan is the key to success (O’Donnell, 2015). Purchasing and successfully
implementing any automation system can be one of the costliest, labor intensive, stressful and business
critical undertakings any business can embark upon. Regardless of the implementation though, it is
incumbent on the organization to employ ‘best-practices’ systems analysis studies, to examine
components of their required system, and to follow a ‘best-practices’ approach to the implementation
step. Additionally, automation solutions vary with each industry, organization and department. The
automation requirements of a wholesale organization will be different than that of a production concern,
while characteristics of a fully integrated FSCM solution will be drastically different than an automated
AP/AR only solution.

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The benefits of automated are more than just improving the speed and efficiency of a company’s
accounting operations. Companies automating their accounting processes have seen improved cash
flow, more accurate information, as well as improved, more concise decision making (AccountingWeb,
2006). Several questions that an organization should ask itself when considering the automation of
several accounting processes or their entire accounting system; which manual tasks would benefit our
company by automating them, where in your accounting cycle are we seeing the highest number of errors
or productivity loss, do these errors or productivity losses have negative impacts, what information do we
need to make strategic decisions, what information do we need to accurately forecast and control cash
flow, and what information do we need for the company’s ARs and inventory?
Knowing your business process structure, as well as performing an internal assessment of financial
processes and technological capabilities, are essentials to successful selection and implementation of
any automation solution. Top-level managers must support the implementation, and must perform due
diligence in choosing the best solution or vendor based on their industry, IT and configuration
requirements. Decisions must be made regarding automation of core operations and functions.
Assessments must be made regarding internal process integration, as well as the ability to integrate with
vendor and customers systems. Data requirements must be aligned to facilitate multiple finance
functions. Finally, employees must be adequately trained in the processes and system. Regardless of the
solution, it should meet most if not all of the following requirements; a best-practices industry solution,
allows for full integration with other internal processes, allows for integration with vendor and customer
systems, allows configuration of master data for vendors and customers, fully integrates and automates
AP/AR processes, provides for a central repository of financial data, possesses e-PO and e-invoicing
capability, provides for e-payment solutions for both AP/AR processes (ACH, credit cards, check-fax),
provides electronic document storage and retrieval, provides workflow tracking and measurement,
provides ease of use in data/information input/access/retrieval/use, has tools for real-time viewing of and
updates to financial metrics, provides exception handling and alerting, and meets all end-user
requirements.
Although not the focus of this paper, minimum systems analysis requirements (independent from a
particular implementation) include the following in Table 4 (Copley, 2015).
TABLE 4. SYSTEMS ANALYSIS REQUIREMENTS
Discovery
Document current business processes, business rules and procedures.
Research
Collect information about the present system.
Analysis
Examine how the present system works and identify problems with it.
Requirements
Analysis
Determine the requirements of a new system, including components of the system;
people, hardware, software, data, procedures, process integration, inputs, output,
and communication.
Process
Reengineering
Reengineer the current processes if necessary to accommodate integration and
automation.
Design
Determine the system that will meet the specified requirements.
Installation
Install the system.
Testing
Test if the system works as expected.
Documentation
Create documents regarding revised business processes, business rules and
procedures, and documents that describe how the system works as well as how to
use the system.
Implementation
Replace the present system with the new system.
Evaluation
Check that the new system meets requirements and expectations.
There are scores of resources available to aid in the implementation of any automation system.
Regardless of the scale or degree of implementation, several basic steps are involved for successful
implementation. What one must keep in mind is that a primary goal of AP/AR automation requires
participation with external stakeholders, such as vendors and customers. As such, all relevant steps
should consider integration and collaboration with external systems. Six such steps are recommended
and outlined below (Copley, 2015).

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Step 1. Strategic Planning
1.a
Assign a project team with knowledgeable staff from every functional area, including support
staff from accounting, IT, as well as mid and senior management. Identify personnel with
authority to communicate and collaborate with ext
ernal stakeholders. Involving external
stakeholders early often mitigates issues related to participation and adoption by stakeholders.
1.b
Define scope and objectives of the project(s) as they relate to functional and cross-function
processes, as well as integration with external stakeholders.
1.c
Examine current business processes, including analysis of current procedures, and identify
processes that will require external integration, and processes that require improvement.
1.d
Establish deliverables for project teams including goals, objectives, timelines, milestones and
deliverables.
1.e
Develop a project plan which includes previously defined goals, objectives, timelines,
milestones, training procedures, and team member responsibilities. The project
plan includes a
to-do list for each member.
Step 2. Review Procedures
2.a
Review current written standard operating procedures (SOPs) versus procedures that are
actually followed, and further solicit input on how people familiar with the process believ
e it
should be done.
2.b
Calculate and record current metrics to establish a pre-system benchmark regarding processes
and workflows, time-lines, financial management metrics regarding AP/AR, etc.
2.c
Identify and document the current process that are manually executed, but could be automated
by the software, versus those that cannot be automated.
2.d
Review software capabilities through an extensive review by the project team, wherein every
member is expertly educated and trained in data and information
requirements, dataflow,
process workflow, inputs, transaction processing, and outputs. Identity software capabilities
versus gaps, areas for modification, possible process reengineering, and improvements in
employee training or documentation. Also review
capabilities of integration with external
stakeholder systems.
2.e
Create documents that correctly map business processes into the software.
2.f
Develop standard operating procedures (SOPs) for every component of the business process,
including processing mapping, exception handling and alerting.
2.g
Develop SOPs for integration with external stakeholders, and provide documentation to
stakeholders regarding required platforms, software, data exchanges, etc.
Step 3. Data Migration
3.a
Determine what current data must be migrated into the new system, like vendors, customers,
products, previously sales or purchases, etc. Identity the source documents or electronic files
storing the data. Some data, like product data, may be available electronically from a vendor.
3.b
Determine the structure of the current data versus the structure required to migrate into the new
system. This may include conversion of data types and changing table structures.
3.c
Export data into the new system, and review the data manually for accuracy and completeness.
3.d
Determine data requirements associated with integration with external stakeholders.
Step 4. Testing
4.a
Pre-test the system internally to ensure all automated processes are working correctly and
information is
accurate. Perform a large number of transactions and ensure reliability and
repeatability, as well as determine capacity for multiple users over concurrent processes in
regards to system strain.
4.b
Pre-test the systems integration with external stakeholders systems, similar to step 4.a.
4.c
Ensure user interfaces for input, output, and reporting are properly designed to satisfy end-user
processing and information requirements, internally and externally.
4.d
Match the process SOP to the actual software interfaces and make necessary modifications to
processes, workflows or SOPs.

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Step 5. Training
5.a
Set aside sufficient time to train users in regards to the nature of your organization’s integrated
business processes, integration points, data and information requirements, SOPs, process data
flows and workflows, required inputs, outputs, reporting and communication, exception handling
and alerting systems.
5.b
Assign project team members to run in-house training in all functional areas of various business
processes. Provide training documentation, how
-tos and cheat-
sheets, and provide refresher
training on an ongoing basis. Also train mid and top
-level managers in the software and
processes.
5.c
Provide training documents to integrated external stakeholders.
Step 6. Go Live
6.a
Develop a Go Live checklist and ensure that
x
physical inventory process is complete.
x
beginning balance entry procedures are developed for all modules.
x
any transition issues are addressed.
x
documents & modifications are tested thoroughly.
x
management is fully trained.
x
vendors and customers are available for go-live day.
x users will have assistance during their first live transactions.
6.b
Evaluate the system for several weeks with a post-implementation audit ensuring data
consis
tency and accuracy, proper reporting requirements, timely and relevant workflow and
accounting metrics, that SOPs are followed, and that goals, objectives, and system expectations
are being met.
6.c
Compare post-implementation metrics with previous benchmarks.
8. CONCLUSION
As organizations strive to be competitive, the need for business process improvements, particularly in the
areas of PTP, OTC and related AP/AR processes, becomes requisite. One key to improvement is
automation.
Managing cash flows, collecting receivables, and pay vendors manually is very labor intensive and time
consuming process, while as the number of transactions become large, cash cycles and error rates
increase while cash management strategies become inefficient. While SMBs have constraints on
resources that prevent them from full ERP implementations, automating the AP/AR process provides the
organization tremendous benefits.
Automation allows for immediate posting, reducing both errors and error handling times, lowers overhead
and labor cost, increases productivity, and provides myriad cash management solutions. Automaton
provides clear visibility into cash flow with speedy resolutions in the areas of cash management.
Automation solutions can be leveraged by integrating financials with related overlying processes like PTP
and OTC, thus optimizing workflow and AP/AR processes.
The ROI with the automation comes from reduction in interest expense from improved cash management
and budgeting, a reduction in staffing requirement and a reduction in errors. As such, this paper provided
an overview of cash management strategies, common pitfalls and problems with manual PTP/OTC
processes and related AP/AR systems, and the benefits to cash management through automation of the
AP/AR processes.
The paper further provided guidance on the desired attributes of an automated solution, systems analysis
requirements, and steps for implementing an automation solution. In conclusion, it is hoped that

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implementation firms, consultants and clients can apply these findings to facilitate a proper
implementation of an AP/AR automation solution.
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AUTHOR PROFILES
Cyril Mayes (MBA, Georgia Southern University, 2011) is an EPR business process specialist with
experience as a project manager and business analyst within SAP FICO with integration in SCM, S&D,
MM, and ME modules. He has numerous years of experience with ERP implementation in accounting as
well as professional certifications in SAP/ERP.

IJBR, Volume 15, Number 3, 2015 ISSN: 1555-1296
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Dr. John N. Dyer (Ph.D. Statistics, University of Alabama, 1997) is a Professor of Information Systems
and Certified SAP Business Consultant at Georgia Southern University, with additional degrees in
statistics (MS, 1995), business (MBA, 1993) and information systems (MMIS, 2004). He has over twenty
years of teaching, research and consulting experience in the fields of ERP, information systems, statistics
and finance.