How a Senior Housing Operator Streamlined AP Operations and Reduced Costs
The Challenge of Manual Check Processing
In the complex web of senior living facilities management, a leading US-based operator faced a significant challenge. Tasked with the care and well-being of residents across over 100 locations in 21 states, the company's dedication to quality was paramount.
But the accounting team was struggling with a significant bottleneck that they could not maintain, especially as they grew: printing checks as the primary vendor payment strategy.
The centralized accounting team, managing Accounts Payable (AP) for 115 company databases within Microsoft Dynamics GP, was inundated with the manual labor of issuing hundreds of payments every week.
This wasn't just a click-and-forget process; it involved multiple, cumbersome steps for check approval and physical printing. The use of MICR printers, managing blank check stock, and the physical stuffing of envelopes were contributing to unnecessary overhead and complexity.
Watch the Video
The Ideal Solution Emerges
When the Director of Accounting and CFO approached Mekorma, they were ready to take the labor out of check printing for the AP staff.
We recommended a simple yet transformative solution: integrate Mekorma Remote Payment Services (RPS) with their existing Dynamics GP system. This would allow the AP team to approve payments within Dynamics GP using a Mekorma workflow. Once approvals are secured, payment information is sent to Corpay, a world class payment provider.
RPS takes over the check printing and mailing responsibilities. In addition, Corpay leads the process of transitioning vendors to ACH or virtual credit cards based on the vendor’s preference. This service relieves the restaurant group’s internal AP staff from the burden of check printing and converting vendors to electronic payment types.
The Key Outcomes of Automating Payments
The results of implementing Mekorma's solution were quick and significant:
Increased Efficiency
The new automated payment process reduced the time spent on manual tasks related to payment processing. What used to take hours now took minutes, freeing the AP team to focus on more strategic tasks. The learning curve was also quite simple as they did not have to learn a new process outside of their familiar ERP system.
Cost Reduction
The reduced need for physical checks and the associated handling drastically cut costs related to check stock, printer maintenance, and mailing.
Improved Security and Compliance
Automation and the secure integration with Corpay’s system minimized the risk of errors and fraud, ensuring that compliance with financial controls was tighter than ever.
Enhanced Visibility and Control
The AP team now enjoyed real-time tracking of payment status and methods, which provided better oversight and management of cash flows and vendor relations.
A Step Towards the Future
By eliminating the labor of check printing, the senior housing operator not only streamlined its operations but also took a leap into the future of financial management. The transition to automation with Mekorma's RPS is a testament to how embracing technology can lead to significant improvements in efficiency, cost savings, and security — all of which are essential for an organization committed to providing enriched, meaningful experiences for its residents and staff.
