Efficient accounts payable (AP) processes are essential for maintaining operational effectiveness and enhancing vendor relationships. Espresso Services, a leading distributor of coffee equipment and specialty beverages, embarked on a journey to transform its AP operations by using the combined power of MineralTree and NetSuite.
In a recent fireside chat at SuiteWorld 2024, Alexandra Kayal, Senior Customer Success Manager at MineralTree, sat down with Ryan Briggs, Espresso Services’ CFO, who shared insights into how this integration has streamlined their AP processes, increased efficiency, and contributed to the company’s growth.
Key takeaways
- Integrating MineralTree and NetSuite enabled Espresso Services to process payables more quickly and with fewer errors.
- The shift to virtual cards and ACH payments helped Espresso Services earn rebates that offset software costs, making AP automation a financially sound decision.
- Espresso Services successfully doubled its sales volume while maintaining the same AP staff, highlighting how MineralTree enables significant growth without the need for additional headcount.
Espresso Services: A success story in AP transformation
- Implementation year: 2018
- Sales growth: Increased from $10 million to $25 million in revenue over nine years
- Staff efficiency: One AP clerk managing the payables for a company that doubled its transaction volume
- Approval time reduction: Streamlined approvals to just minutes from various locations, including on-the-go approvals from mobile devices
These achievements showcase how Espresso Services effectively harnessed technology to optimize its AP processes. Let’s take a deeper dive into the Q&A, where Ryan Briggs shares valuable insights and advice for those considering similar automation solutions.
Insights from a MineralTree user: AP automation and NetSuite integration
Alexandra: I’m the Senior Customer Success Manager here at MineralTree. For those of you who don’t know what MineralTree does, we are a full invoice-to-pay automation solution for account managers and financial professionals. I am here with my friend Ryan from Espresso Services, one of our long-standing clients, who has been with us since 2018. So I will hand it over to him. Ryan, tell us a little about yourself.
Ryan: I’m Ryan Briggs, CFO of Espresso Services. I’ve been with the company for nine years. Prior to Espresso Services, I spent time in public accounting and in controller positions in the environmental services and medical device industries.
Alexandra: When you began your MineralTree implementation, you wanted to see value quickly. How did that go?
Ryan: We started looking into AP automation back in mid-early 2018, and we implemented MineralTree in late 2018. The implementation was easy, we were able to export vendors from NetSuite and import them into MineralTree. From there, we set up users, permissions, and approvers, and we were off and running pretty quickly.
MineralTree’s implementation process allowed us to design the bill approval process similar to how we had previously done it with a piece of paper, which was very important to us. For example, we needed to maintain multi-approver requirements for certain invoices and implement dollar threshold approvals, to accommodate our specific business needs. MineralTree was able to do that, which made the transition very easy for the team.
Our accounting clerk is now able to send bills to MineralTree, code them and route them for approval, which creates the bill in NetSuite. And our managers love MineralTree because approving bills is now as easy as a couple clicks on their phone or computer, which certainly is easier than having to track down the bill in your email inbox–or your actual mailbox.
Alexandra: Tell us how MineralTree and NetSuite work together to bring value to your team.
Ryan: Yes, the integration between MineralTree and NetSuite work well together. When a bill is sent for approval in MineralTree, MineralTree creates the bill in NetSuite and sends a PDF copy of that invoice and puts it in NetSuite, so it’s accessible there. This bi-directional sync has been extremely helpful for me at month-end, when putting together my monthly variance analysis.
In one example, I noticed our IT operating expenses were triple what we’d planned. I was able to drill through the accounts and found one that stuck out like a sore thumb. I clicked on that bill in NetSuite and then opened the PDF, and I was able to easily see that we spent 15 hours of development work on our eCommerce platform where we had only planned for 5 hours. I was able to quickly explain that variance to my internal leadership team, which was super helpful and saved me a lot of time.
Another great feature in the integration is the bill credits. When our vendors issue bill credits, they go to MineralTree and our AP clerk can see those when putting together payment runs so they’re applied to the appropriate invoices.
And in the unlikely scenario that a credit is missed, I can see available credits and credits taken, by individual vendors, when I’m approving payments. So, if I see $10,000 in credits available and our AP clerk hasn’t applied them, I can reject it in MineralTree and return it back to our accounting clerk to update. He’s then able to get that quickly turned around and once I approve the payments in MineralTree, the software writes over the bill payment into NetSuite and it has the bill credits properly applied in NetSuite. This is a way to help us optimize our working capital, which has been a huge help.
Alexandra: What’s your philosophy on paying vendors to make sure the relationships stay on good terms, and that vendor payments are quick and secure?
Ryan: Our preferred method of paying vendors is virtual card, ACH, and check, in that order, but we’ve also shifted to a philosophy of paying our vendors how they want to be paid. We ask that from our customers, so it is only fair to do the same with our vendors. This helps with vendor relations, as they get their payments quickly and that lets us take advantage of some prompt payment discounts, so that’s been a win/win.
Another thing I like about MineralTree’s payment process, which was different from other solutions I vetted, is that MineralTree allows checks and ACHs to settle in my operating account. Other solutions, as soon as I approve the payments, pull the money out of my account, put it into their accounts and let the payments settle there. So, what does that allow them to do? It allows them to earn interest on our money. I like being able to keep the money in our operating account until payments clear, which maximizes our working capital from that perspective.
And the direct debit model, where the funds are taken straight from our bank account connected to MineralTree, and delivered straight to the supplier, helps ensure security.
Alexandra: Tell us about some of the automation features you find most useful.
Ryan: Yes, there are two that I’d highlight as being very valuable in both time savings and the reduction of errors.
The first is approval routing. Prior to MineralTree, our AP clerk would email bills to managers in our remote offices or print them, and put them in the mailbox for managers at our main office. As you can imagine, there were times he’d get an email back saying, “that’s not my bill,” or, he’d get it on a post-it note back in his mailbox. At that point, he’s stuck having to guess again who he should send it to, or he’d have to ask for help. 90% of the time, I could point him in the right direction, but at times we’d both end up spending time researching the owner of that bill.
With MineralTree, as we set up vendors, part of the process is to assign an approver right in MineralTree for that vendor. It’s now the assigned approvers responsibility to approve the bill, or if it’s not their bill, they are responsible for determining who to route it to. I can now say confidently, I haven’t had any questions since 2018 about where to send bills for approval, so that’s been nice.
Then the second feature is auto-coding. MineralTree allows us to assign default GL accounts, departments, and locations as part of auto-coding, so when a bill is routed for approval and created in NetSuite, it’s automatically properly coded in MineralTree. I’ve seen a noticeable reduction in coding errors when reviewing monthly financials.
These two automation features have taken away some of the guesswork involved from our accounting clerk allowing him to operate more efficiently and process more invoices–it’s just a better way to do it.
Alexandra: Is there any advice you’d give another CFO, or another NetSuite customer, considering AP automation?
Ryan: If you haven’t started looking into AP automation, I’d strongly encourage you to do so. For us, MineralTree’s AP automation really has been a game-changer. It’s allowed us to scale our business efficiently and enable profitable growth.
If you rewind nine years, we were a $10 million company and I had one person processing payables. Last year, we were a $25 million company, so our sales have more than doubled, and it’s probably safe to say our transaction volume has at least doubled. I still have one person processing payables, so I can pretty confidently say MineralTree has saved us from having to hire another accounting clerk to handle payables.
For those of you looking for the right AP automation solution, I’d recommend doing what we did. We put together a needs analysis, and identified the features that were ‘non-negotiables’ for our software. Then we added some ‘nice-to-have, but not essential’ features. We eliminated features that weren’t relevant to us, and then, we looked at the cost of the software.
MineralTree checked all the boxes on our needs analysis, at a reasonable price, and it allowed us to maximize our ROI. For us, it really has been the perfect brew.
Ready to transform your accounts payable process?
If you’re looking to streamline AP and improve operational efficiency, it’s time to explore the power of AP automation with MineralTree. The seamless integration with NetSuite allows businesses to scale without the need for additional staff while also improving vendor relationships and minimizing errors.
Request a meeting to see how MineralTree can transform your AP processes and help uncover significant savings.
NetSuite accounts payable FAQs
1. What specific benefits did Espresso Services experience after implementing MineralTree with NetSuite?
After implementing MineralTree, Espresso Services experienced several key benefits, including:
- Increased efficiency: The company processed payables more quickly and with fewer errors, reducing approval times to just minutes.
- Cost savings: The shift to virtual cards and ACH payments allowed them to earn rebates that offset the software costs, making automation financially advantageous.
- Scalable operations: Despite doubling their sales volume, Espresso Services maintained the same accounts payable staff, demonstrating the ability to grow without additional headcount.
2. How did the integration between MineralTree and NetSuite improve Espresso Services’ accounts payable process?
The integration between MineralTree and NetSuite enabled seamless bi-directional data syncing. For example, when a bill is approved in MineralTree, a corresponding record is automatically created in NetSuite, complete with a PDF copy of the invoice. This functionality streamlined the approval process and enhanced visibility during month-end financial reviews, significantly reducing the time needed for variance analysis.
3. What advice is available for businesses considering AP automation?
Businesses considering AP automation should conduct a thorough needs analysis to identify essential features required from the software. It’s important to focus on solutions that meet all the necessary functionalities at a reasonable price, enabling organizations to maximize their return on investment. Automation solutions can help businesses to scale efficiently without needing additional staff.
