Odoo Experience 2020 Simon Stappen, much. https://youtu.be/1X5r0LWXwv8

1. Should I
automate Finance
& Accounting?
Probably YES.

2. Who needs finance &
accounting
automation?
Goals of this talk:
1. Quantify cost savings and other consequences of
digitization and automation in finance & accounting
2. Adaptability of the results (every company is
different)
3. Show how the learnings can be applied using Odoo
much. Consulting
Efficiency & potentials
Non-quantifiable potentials
Can my company save money by
digitizing & automating finance &
accounting?

3. Managing your cashflow is the key to your companies success
& survival – especially in crisis.
09.09.2020 3
Real time cashflow
management
• Raise capital efficiency
• Manage your liquidity
Digitize
• All documents are digital
• Efficiency minimally improved
Automate
• Only control results
• Focus of team shifts to strategic & analytical task

4. Splitting the problem: creditor vs. debitor management
09.09.2020 4
Cash out
P2P OTC Cash in
Processing
Cash out
Follow ups
Invoices
Vendor bill

5. Purchase
to
Pay
Process
Can it be as easy as in our private lifes?

6. Reminder: Purchase-to-Pay Process
9/9/2020 6
Offer & Order Shipment Invoice & booking Payment &
reconciliation
Inhouse demand &
approval
Purchase
Order
Delivery
Slip In
Vendor
bill

7. The traditional process: paper & manual work heavy
09.09.2020 7
Paper
Electronic
Inbox to
Accounting
team
Forward email
Supplier
sends
invoice
Print invoice
Physical
invoice
Digital
invoice
Cross check
relevant
documents
Check
content
Check formal
requirementsApprove
invoice
Why?
Ask for new
invoice
Post invoice
Approve
payment
Post payment ArchivePay bill
27%
73%
Yes
No
Vendor bill Bill processing
Check
Exception
Approve & pay Archive
End of
process
Correct ?

8. „But, the process always worked fine in the past!“ - Customer
Yes, but at what price?
9/9/2020 8
1,41 minutes
0,69€
2,63 minutes
1,29€
12,82 minutes
6,29€
5,41 minutes
2,69€
25,67 minutes
13,69€
Total
Exception
3,41 minutes
1,67€
Archiv 1,10€*
Postal vendor
bill
Prepare
document
Check Approve & Pay
*According German Legal requirements

9. The digital, automated & ERP driven process
9/9/2020 9
Paper
Electronic
Inbox to
Accounting
team
Export invoice
Supplier
sends
invoice
Ready for
processing
Cross check
relevant
documents
Check
content
Check formal
requirementsApprove
invoice
Correct
?
Why?
Neue
Rechnung
anfordern
Post invoice
Auto remind
before due date
Approve
payment
Digital ArchiveInvoice paid
Scan
Structured
data?
OCR
Reconcile
payment
Archive or
destroy paper
27%
73%
Yes
No
Yes
No
Vendor bill Bill processing
Approve & pay
Exception
Archive
Archive
End of
process
Check

10. What other cost can we avoid?
9/9/2020 10
1 minute
0,49€
2,61 minutes
1,32€
Total
Exception
1,61 minutes
0,79€
Digital Archiv 0,04€*
100% email
vendor bills
Prepare
document
Check Approve & Pay
*According German Legal requirements

11. Exceptions
Digitization & automation save variable cost
9/9/2020 11
Postal
vendor bill
Prepare
document
Check
Approve &
Pay
Archiv
13,92€
2,26€
0,69€ 1,29€ 6,69€ 2,65€
- 0,94€ - 0,49€
1,90€
0,79€
1,10€
0,04€
Paper,
Manuel
Email,
Automated
11,66€ saved per vendor bill

12. Order
to
Cash
Process

13. Reminder: Order-to-Cash
9/9/2020 13
Delivery
Slip Out
Sales
Order
Invoice
Time
Sheet
Order Fulfillment Deliver Service or Product Invoice & booking Receive cash & reconcile

14. Late payments cost time, reduce cashflow & create higher
working capital requirements
09.09.2020 14
Confirmed
Order
Invoice data to
accounting
Create
Invoice
Check invoice
Print
invoice
twice
Archive
Send invoice
by post
Post
receivable
Wait for
payment
Payment
late?
Send follow
up
Paid by
new
deadline
?
Send next
follow up
End of
follow
up?
Invoice
paid
Post payment
against
receivable
End of
process
Other follow
up methods:
• Collection
• Court
based
processes
No
Yes
Invoice
paid
Payment
defaults
YesNo
No
Yes
Invoice creation Print & send
Remittance- & Cash-ManagementFollow Ups
Follow Ups
1Siehe AvidXchange (Herausgeber)

15. The classic O2C process costs ~5,55€ in Germany
09.09.2020 15
1,95€ 0,25€ 2,25€ 1,10€
5,5€Total
Print & send Follow Up
Remittances &
Cash-
Management
Archive

16. Digitization & automation support process
09.09.2020 16
Confirmed
Order
Invoice data to
accounting
Create
Invoice
Digital
Archive
Send invoice
digitally
(email, EDI)
Post
receivable
Wait for payment
& track in real
time
Payment
late?
Digital
Payment
Reminder
Paid by
new
deadline
?
Digital
Payment
Reminder
End of
follow
up?
Invoice
paid
Post payment
against
receivable
End of
process
Other follow
up methods:
• Collection
• Court
based
processes
Invoice
paid
Payment
defaults
No
Yes
YesNo
No
Yes
R & C
Mgmt
Invoice creation
PDF & send
Remittance- & Cash-ManagementFollow Ups

17. By digitizing and automating the process, the cost goes
down to 1,70€
09.09.2020 17
0,20€ 1,50€
1,70€Total
Print & send Follow Up
Remittances &
Cash-
Management
Archive

18. You can save up to 3,85€ per transaction by automization
09.09.2020 18
Total
Postal
vendor bill
Prepare
document
Check
Approve &
Pay
5,55€
1,70€
1,95€ 0,25€ 2,25€ 1,10€
- 0,20€ -
5,55€
1,70€
Manuel Digitized,
automated
3,85€ per transaction
1,50€

19. Can I do more?
Acquire payments online.
Transaction heavy business with low basket volume can use online payment (e.g. PayPal,
Credit Card, SEPA Debit) to reduce the cost to ~0,05€ per transaction + payment fees.
09.09.2020 19
PayPal* SEPA* CC*
Variable 1,90% 0% 1,40%
Fixed 0,35 € 0,35 € 0,25 €
Basket:
10 € 0,54 € 0,35 € 0,39 €
25 € 0,83 € 0,35 € 0,60 €
50 € 1,30 € 0,35 € 0,95 €
100 € 2,25 € 0,35 € 1,65 €
150 € 3,20 € 0,35 € 2,35 €
→ Up to based sizes of ~100€ pre-order online payment will always be cheaper than pay by invoice.
*Public OTC prices, this analysis does not account for payment defaults, SEPA charge backs, CC fraud and many other factors.

20. So…
Can my company save
money by digitizing &
automating finance &
accounting?

21. The size of your company & amount of transactions strongly
drive the amortization time frame for a Finance driven ERP
09.09.2020 21
# vendor bills per month
#customerinvoicesp.month
< 12 month
> 12 month
Time to
amortization
Scenario #1
Small company (1.5m€ rev)
Cost of ERP: ~10k€
Scenario #2
Medium company (10m€ rev)
Cost of ERP: ~50k€
Scenario #3
Medium sized company (30m€ rev)
with 3 entities in 3 countries
Cost of ERP: ~100k€
50 100 250 500 1000 2500
50
Scenario #1
100
250
Scenario #2
500
1000
Scenario #3
2500

22. If implementing an ERP amortizes in 12 month, it should
always be executed
09.09.2020 22
# vendor bills per month
#customerinvoicesp.month
< 12 month
> 12 month
1genaue Berechnung der verschiedenen Fälle, sowie der Kostenstruktur Folie 44ff.
Time to
amortization
50 100 250 500 1000 2500
50 13 7 16 8 8 3
100 10 6 15 8 8 3
250 32 23 13 7 8 3
500 20 16 10 6 7 3
1000 23 20 15 10 6 3
2500 10 9 8 6 5 3
Scenario #1
Small company (1.5m€ rev)
Cost of ERP: ~10k€
Scenario #2
Medium company (30m€ rev)
Cost of ERP: ~50k€
Scenario #3
Medium sized company (30m€ rev)
with 3 entities in 3 countries
Cost of ERP: ~100k€

23. The size of your company & amount of transactions strongly
drive the amortization time frame for a Finance driven ERP
09.09.2020 23
# vendor bills per month
#customerinvoicesp.month
< 12 month
> 12 month
Time to
amortization
Scenario #1
Small company (1.5m€ rev)
Cost of ERP: ~10k€
Scenario #2
Medium company (10m€ rev)
Cost of ERP: ~50k€
Scenario #3
Medium sized company (30m€ rev)
with 3 entities in 3 countries
Cost of ERP: ~100k€
50 100 250 500 1000 2500
50
Scenario #1
100
250
Scenario #2
500
1000
Scenario #3
2500

24. If implementing an ERP amortizes in 12 month, it should
always be executed
09.09.2020 24
# vendor bills per month
#customerinvoicesp.month
< 12 month
> 12 month
Time to
amortization
50 100 250 500 1000 2500
50 13 7 16 8 8 3
100 10 6 15 8 8 3
250 32 23 13 7 8 3
500 20 16 10 6 7 3
1000 23 20 15 10 6 3
2500 10 9 8 6 5 3
Scenario #1
Small company (1.5m€ rev)
Cost of ERP: ~10k€
Scenario #2
Medium company (30m€ rev)
Cost of ERP: ~50k€
Scenario #3
Medium sized company (30m€ rev)
with 3 entities in 3 countries
Cost of ERP: ~100k€

25. So, again. When should I automate finance & accounting?
09.09.2020 25
Size
Start latest at 20 employees
or 100 in & out going invoices
(in Germany)
Channels
Brick & Mortar
D2C
B2C
B2B
…
Industry
Any. Really.

26. Please ask any question!
(Don’t be shy!)

27. much. Consulting
Thank you for your time.
much. GmbH, Paul-Heyse-Straße 2-4, 80336 Munich, Germany
info@muchconsulting.de | +49 89 / 20070811
Simon Stappen
Managing Partner
simon.stappen@muchconsulting.de
+49 170 2263587