Tipalti implementation ROI for a sample company in the ecommerce/online marketplace space.

1. eCommerce Company
The Case for Supplier Payment Operations
Automation
Prepared on: 03/03/2017

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What We Heard
• Need to offer more payment options to supplier to stay
competitive
• Higher costs due to rejected payments and errors
• Wasted time on manual payment reconciliation
• Increasing calls due to poor visibility into payment statuses
• Time-intensive processes can’t keep pace with growth;
impacts profitability
• Regulatory, tax, and financial controls risk exposure can
impact payouts to fraudsters

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One System to Manage Global Freelancers Payment Operations
Suppliers
Payer
The Desired State
Domestic & Global
Remittance
Supplier
Vetting
Tax Form
Collection & Validation
Supplier
Registration
Payment
Reconciliation
1099/1042-S
Preparation
Issue Handling &
Resolution
Supplier
Communications
Payment
Instructions/Approvals

4. eCommerce Company
ROI Analysis

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Total Manual Hours Spent per Year
3,394 hrs
Blacklist / OFAC Screening: $11,538
Payment Execution: $36,923
Supplier Communication: $13,269
Freelancers Onboarding: $3,692
Payment Approval: $23,077
Payment Error Fees: $55,869
Payment Reconciliation: $34,615
1099/1042-2 Reporting: $7,436

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Savings Analysis
eCommerce
Company +
Differentiation
 Retain and attract new suppliers
 Expand to other markets more
efficiently
Scalability
 Eliminate 80% of current AP workload
 Don’t need to staff up AP as you grow
globally
Compliance
 Avoid compliance penalties
 Strengthen tax, regulatory, and
financial controls
Benefits
ROI Improvement
Net Savings with Tipalti Cost Included
Year 1
Year 2
Year 3
10.04x
16.53x
22.83x
3-Year ROI
Net Savings With Tipalti Cost Included
$607,872
Payback Period
Implementation Time Included
0.00 months
Breakeven Analysis

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Area Business Benefit
Self-Service Onboarding
 Remove administrative overhead from strategic finance professionals
 Improve data quality
 Eliminate payment error costs
Digital Tax Form Collection
 Protect the company against tax non-compliance and associated cost
 Remove administrative overhead from strategic finance professionals
 Ensure you are only paying legitimate suppliers
OFAC & AML Checks  Protect the company against non-compliance
 Protect from fines and penalties
Mass Global Remittance
 Execute effectively on international growth aspirations
 Enterprise-grade financial controls
 Minimize or eliminate checks (leading source of fraud)
Proactive Communication  Minimize administration of valued staff
 Provide transparency around payments to suppliers
Payment Reconciliation  Accelerate financial close
 Improve cash forecasting
 Foundation to scale the business while maintaining a lean finance department
 Minimize risk exposure to the company
 Focus finance staff on strategic initiatives
Tipalti’s Impact to the CFO

8. 9
Solving Partner Payment Operations
99%+ Retention • $2.75B+ in Transactions Managed Annually • 1.5M+ Payees