Industry: Diagnostic Imaging
Business Solution: DocStar Smart AP Solution integrated with Sage ERP
Business Challenge: Save time, reduce costs, QEZE tax reporting compliance and streamline A/P
For more than 30 years, DRA Imaging has led the way in providing state-of-the art diagnostic imaging. DRA Imaging is a full service medical diagnostic imaging facility offering a complete and comprehensive list of diagnostic and interventional radiological services.
When DRA Imaging, Inc. (DRA) initially approached DocStar in 2013, their existing AP process was very labor intense, which made it prone to human error and delays. With challenges of limited staffing, obtaining documentation from multiple locations, a multi-level approval process, and the need to provide timely financial information, it was time to look at automation.
In addition, they had special Qualified Empire Zone Enterprise (QEZE) sales tax reporting requirements that added significant manual verification and reporting.
“We needed a solution that could capture invoice data, perform tax calculations and verification, and integrate well with Sage ERP – as well as a provider who could work closely with our Sage reseller,” noted Sandy Robb, Director of Accounting.
Sandy’s years of experience and expertise in the accounting field made her the ideal candidate to seek out, qualify, and select the best solution for DRA’s needs. “By eliminating data entry, I can more efficiently use the higher level skills I am paying my staff for.”
DRA’s invoice process requires great attention to detail because they have multiple locations and take part in QEZE sales tax credits for some, but not all, of those locations. Since their invoices
could represent items for multiple tax types on one invoice, their process for calculating taxes allocated to the different locations was very sophisticated.
The process involves multiple state, county, jurisdiction, and classification tables. The painstaking manual process of calculating each line item’s individual tax, rolling it up, and classifying the different taxes let alone general ledger coding on one invoice could take 20 minutes per invoice. At 12,000 invoices per year, that’s roughly two Full Time Equivalents (FTEs) in labor just to process accounts payable.
Sandy knew that the labor savings could go much further if they could also find a way to automatically route invoices for approval electronically, and populate the invoice data automatically in their Sage ERP system. Approval delays and additional time spent just keying invoices in would be a thing of the past. That’s where DocStar AP automation could help – and in a big way.
Sandy researched the top vendors in the AP automation space, deciding on DocStar as the best vendor. DocStar’s years of experience in business process automation, specifically integrated Smart AP automation was a perfect solution for their needs. Not only could DocStar automatically capture invoice data and integrate with Sage ERP but it could provide the consulting services to fully understand, advise, implement and configure the sophisticated tax calculations and verification required to dramatically reduce the amount of time required to process their invoices – all while working closely with their Sage reseller.
“I was completely at ease working with the DocStar team. They really knew how to integrate their solution with Sage and consulted with us in a very collaborative fashion.”
DRA Imaging processes approximately 12,000 AP invoices annually. DRA Imaging knows that by increasing their efficiency they will lower overhead, improve cash flow, and provide greater transparency of information to other departments.
Once all required approvals have been received, invoice data is sent to the Sage ERP system for automatic invoice data entry. Embedded integrated retrieval buttons allow for one click viewing of supporting documentation directly from within Sage screens. DocStar ECM ‘s Intelligent Data Capture feature captures the invoice image, extracts key invoice data including line items, and performs sophisticated tax calculations and verifications.
Then the invoice is routed to an approval workflow that is accessible to all approvers wherever they are via a simple browser and internet access.
With the DocStar ECM SmartAP Automation solution, DRA can now automatically report on their QEZE and non-QEZE invoices by month on an automatic scheduled basis, substantially reducing the time it previously took to aggregate all the invoices, sort them, and enter them into MS Excel to submit their tax credit reports. “Automatic detailed reporting is such a time saver my team and I will no longer dread the QEZE reporting crunch!”
DRA Imaging is looking forward to deploying additional automation applications including Expense Reports starting from an electronic form, while never actually printing it but instead creating an all-electronic process start to finish. With a focus on tackling their biggest pain points up front, DRA is transforming the way they do business one application at a time preparing them to be more agile, more competitive, and provide better services.
“Our team was a little apprehensive as we started to build out the process, but now that they’ve become familiar with it and recognize how much time it saves they like it a lot more. Now they can focus on the more important aspects of their job rather than tedious data entry.”
Sandy goes on to point out that while the DocStar product was a great fit for their needs, where DocStar really shined was in its people and consultative processes. “They took the time to understand our process and what we needed to make the most out of the solution. We felt like they really cared about us feeling comfortable with the solution and the way we needed it to work.”