Mr.

Brian Goggins
President
Byrne & Jones Construction
13940 St. Charles Rock Rd.
Bridgeton, MO 63044
Mr. Goggins,
Purpose:
I propose that we invest in a document scanning system for all of our vendor invoice
correspondence. Employees have an ongoing need to research past documents in a timely
manner. Documentation that is archived in our warehouse often include past invoices, Lien
Waivers, and bid documents. The Accounting Department receives requests for needed
information and manually pull the original paperwork. Often times this leaves a gap from the
time of the initial request to the time it takes a staff member to pull the record, review it and pass
it along to the initiator.
Investing in an electronic scanning system will allow all staff to approve and review
documents in a time efficient manner. The system will house all invoices approved and pending
approval by the Project Manager. It will have all Lien Waivers required for us to receive payment
from Contractors at an immediate search. Any questions that may arise from a vendor,
regarding an invoice or bid document, can be easily viewed by any staff member at any time of
the day. Having the ability to electronically view and retrieve information, allows speedy turn
around time for all aspects of our business to keep our customers and employees happy.
The Problem With Current Paper Filing:
Currently all of the current vendor invoices are housed in my files within the Accounting
Department. Any files older than one year are placed in our storage units behind the building.
The Accounting staff are the only approved personnel to retrieve old documentation once its
been paid or approved. Payment to our vendors can take weeks depending on the
circumstances.
The current invoicing process is, the receptionist opens the mail and distributes it
accordingly. This process alone can take one to two days. The Project Manager must determine
that the invoice is theirs, review it for approval and add the appropriate cost code. This step can
take several days to one week depending on the situation. If the invoice was delivered to the
incorrect Project Manager it is then passed along which can add another day or two. The
Accounting Department then reviews the invoice to make sure its coded correctly and either
they correct the productivity code and or enter it into the accounting package. If we have been
paid for the pay application the invoice falls under then the accounting department will set the
invoice to paid with in the next check run. If we have not been paid for the invoice just approved
then the accounting department enters the invoice and waits for our payment to come through.
The Project Manager is not always aware of this and dont know that their invoice has not

immediately been paid once they turn it in. At this point there are too many invoices for the
amount of staff to follow up on every time and this is not being done.
There are required forms such as a W9 and Certificate of Insurance that the Accounting
Department do not receive from the Project Manager. Once we receive a new vendor invoice
and realize we do not have all the paperwork, we then have to contact the vendor to obtain it.
Depending upon how long it takes the vendor to get back to us, will too hold up payment. In the
end it can take up to 30 days to process and invoice to pay a vendor. We at the point have to
rush to get the Lien Waiver back from the vendor for payment to turn in with our next pay
application to our Contractor.
The Scanning Solution:
The receptionist receives the invoice and scans it into the system immediately.
Shortening the timeframe of approval by one day. The Project Manager immediately receives
notification that they have an outstanding invoice. If it is not approved to be sent to the
Accounting Department within one week a notification is then sent to their supervisor. The
Project Manager must check off that they have all the required information on their vendor
including an updated Certificate of Insurance and a W9 or 1099. The Project Manager must also
code the invoice to the proper job number and cost code.
If the receptionist sends the invoice to the wrong staff member the Project Manager will
have a date stamp electronically with information on who and when they passed it along to the
appropriate staff member. The Accounting Department will have the authority to send back any
invoices that are missing information are improperly coded with a suggestion. This will also help
for training purposes to insure problems are resolved and not continued. Once the appropriate
code is realized half of what the Accountants would enter is already ready to transfer over to
their Accounting package, saving half of their processing time as well.
In addition to accurate accounts payable, the Accounting Department could immediately
notify the Project Manager that we are waiting on payment and contact their Contractor
immediately to speed up the process. Since we cannot pay a vendor before we get paid on a
job, the communication is clear and concise. This will insure the Project Manager is always up
to date with their Receivables and follow up will be done in a more efficient and timely manner.
When follow up is required on any past invoices, the Project Manager or anyone
receiving an inquiry can review the electronic version of an invoice immediately. If an
overpayment or underpayment is made we will know right away. The process time for an entire
invoice cycle can be reduced by fifty percent, taking a maximum of two weeks and allow an
electronic trail of documentation for each invoice.
The Cost:
Scanning Software Packet:

$10,000.00

Scanning Devices: $1000/per

(Receptionist, Acct. Dept., and Proj Asst)
Licenses (35*$100.00) Annual
Total Cost

$3,000.00
$3500.00
$16500.00

There are upfront costs to investing in a new scanning system but the benefit of manual time
saved and error depletion overrides the cost in the long run.
The Conclusion:
Purchasing an electronic scanning system will save time, money, and allow a seamless
invoicing process. We will have higher clien moral and ease of mind for employees. Access to
pertinent information at our employees fingertips is critical in our technologically advanced
world. We will reduce Payable turnaround time by fifty percent while increasing our follow up on
receivables to be paid within the thirty day pay application timeframe. I fully support and will
supervise this operation to insure a smooth transition. My follow up with you will be on a monthly
basis as I will report Aged Receivables and Payables with you. I am happy to discuss this
proposal with you at your earliest convenience.
Thank you,
Jessica Kornfeld
Project Accountant
Byrne & Jones Construction