The theme of our recent AP technology conference in Chicago was "Paper-Free AP," and several of the sessions addressed the use of data capture tools. That is, technology that reads the invoice once it's scanned into an imaging system so that the data does not have to be input manually. Several AP managers related positive experiences they are having with this technology.

Take a fresh look: We are aware that this technology, generally referred to as OCR (optical character recognition), has had somewhat of a troubled history. Some time ago, many people tried it and had bad experiences with it, especially in its accuracy rate.

But recently, we found out that users today are happy with the accuracy rate. Almost three-quarters of users we surveyed said that recognition accuracy met or exceeded their expectations. At our Chicago conference, users were reporting accuracy rates of over 90%.

Vendor claims: Vendors will quote accuracy rates approaching 97% or 98%, but those numbers are virtually meaningless. It's like anything you do in a laboratory under controlled conditions; the accuracy rate is totally different from when you're doing it in a real world environment. Published numbers have nothing to do with the appropriateness of the solution for your particular situation.

The only useful answer to this question is, "it depends on the kind of invoices you're scanning." The best test is to run images of your invoices through data capture applications from various vendors to determine which solution produces the best results. In some cases, it may be worth paying the vendors to install their systems for proof-of-concept testing at your location to obtain a real comparison of accuracy rates.

DataServ, the leading on-demand service provider of document management, workflow and outsourcing solutions, announces that Michael Bills has accepted a position of Associate Document Solution Consultant. Bills will be responsible for delivering superior client satisfaction by building and supporting DataServ client solutions. He will interface with various groups within DataServ as well as the client. His extensive consulting background makes him a valuable addition to the DataServ IT team. Bills holds a B.S. in Management Information Systems, with a minor in Computer Science, from the University of Missouri, St. Louis. He also received his Masters degree in Business Administration from Fontbonne University, located in St. Louis, MO.

Prior to joining DataServ, Bills worked as an IT Consultant for companies including Monsanto, Metro and May Corporation. His duties ranged from database administrator, programmer, telecommunications and project manager.

From: AICPA
By: Rick Telberg/At Large

If you or your company hasn't yet confronted the question of shedding some operations and outsourcing them, then hold on; you will.

Outsourcing, especially finance and accounting outsourcing, is growing by leaps and bounds as businesses strip down to their core competencies and as alternatives spring up near and far. Outsourcing represents an opportunity for CPAs to add value in a variety of ways, ranging from helping companies make the right decisions to taking on the work themselves.

Read Story

DataServ, the leading on-demand service provider of document management, workflow and outsourcing solutions, announces that Courtney Collier has accepted a position of Document Solutions Specialist. Collier will be responsible for supporting DataServ's systems, handling technical client issues and implementing DataServ's On-Demand document management solutions. His wide variety of skills makes him a valuable addition to DataServ's Software Infrastructure team.

Prior to joining DataServ, Collier worked at Professional Environmental Engineers, where he served in various technical capacities.

If you're looking to offshore your AP operations, you can dramatically improve the cost savings by improving processes before the move. That's the main point in new research from The Hackett Group, a strategic advisory firm and an Answerthink company.

Hackett says that companies can potentially increase the savings from offshoring by over 50% by strategically combining "Lift & Shift" efforts, which move back office processes overseas without first improving them, with "Transform & Shift" initiatives, where processes are optimized and then taken offshore. Hackett's research finds that the key to generating these savings is careful planning and analysis to determine which processes to offshore and whether or not to integrate transformation, and a staged approach to offshoring over a five to ten year period. In some cases, Hackett's research shows that the potential exists for companies to capture the majority of the available cost reduction through process optimization alone.

"As offshoring has matured as a business strategy over the past few years, the discussion has shifted, from 'Should We?' to 'How Should We?'" explained Hackett Chief Research Officer Michel Janssen. "But it's a complex long-term process, with the potential for spectacular successes as well as real failure that can cause companies significant setbacks. Companies that try to take the easy way out and rely solely on a simple 'Lift & Shift' approach, will significantly increase their risk, and are likely to capture only a fraction of the value that's out there."