Start Thinking Outside of the Box with Solomon
 

As members of the accounting and information technology teams, sometimes we just get used to doing things one way.   I am starting a new ezine series to present ideas for doing tasks differently and getting better results.

Take a minute and read this short article and see if it makes sense to evaluated this change at your company?

Problem:  Not adjusting to new alternatives

Seems like every year, we hear about increases in the prices of postage, business envelopes, and check stock paper.  Still the main way we pay our vendors is via paper checks.   The world of electronic payment has been around for years with payroll checks, and recently with online check paying services. 

Most accounting users have not adopted to these realities. When we think of our accounting programs and the paying of our vendors, we still think cutting paper checks.  There are three hard costs which are slowly starving profits out of our business:  the cost of stamps, the cost of check stock, and the cost of envelopes for our paid checks.

When we look at the cost of online check paying services, we quickly realize that the extra time for data entry and lack of audit links back to Solomon make this option not very plausible.

 Solution: Integrated Electronic funds transfer

Sandler Kane, is one of the premier developers for Solomon products.  Using Solomon development tools, they have been able to develop add on products which tightly integrated to the core products.   The AP Electronic Funds Transfer module provides automatic funds transfer from your Accounts Payable checking account(s) to your vendors’ bank accounts. Use this ACH (Automated Clear House) Credit system to eliminate the time consuming process of printing, signing, stuffing and mailing A/P checks. What had previously taken hours, now takes minutes. Whether you are reimbursing your employees for their expenses, streamlining your vendor trade pay, or paying taxes, the time savings can be great.   In addition, when you pay via electronic funds transfer you eliminate these costs  : Stamp ($0.39),  mailing envelope for check ( $0.11 to $.15), and cost of laser check ($.20 to $ 0.25).  The total cost for materials and stamps is somewhere between $0.70 to $0.79 per check.  This may not seem like much, but when you start calculating the total costs you are spending on these supplies each year, check processing is expensive.

We have found that the typical breakeven for the software costs is somewhere between 6 months to 15 months.  If you throw in the labor cost savings of no check stuffing, no check signing, no stamp affixing etc. the break even time is even shorter.   From your vendor’s side, they are typically getting their checks

deposited into their banks in 24 to 48 hours, as per the normal ACH clearing process.  The vendor optionally gets an email from you notifying them as to the amount and which invoices are being paid electronically.  What great vendor service!!

Here is link to an online video on this module:

http://www.sksoft.com/scrncams/APEFTVideo1.html  The video is about 10 min long.

We would like to create a quote for you.  Please give us a call at 866 455 9876 or 408 379 1111.  The installed price  of this module starts at approximately $1450 and gets adjusted depending on which the number of Solomon users and the version of Solomon.   Any orders made before 10/10/06 will have at 25% reduction in labor rate for installation and training.

Act now to get these savings and start moving your company to increased profitability via faster and cheaper check processing!!