It isn’t so funny when you're stuck in the 70's in your A/P department

Thu, Aug 18, 2016 @ 10:38 AM

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While we might like to watch THAT 70’s SHOW, we certainly shouldn’t be living with paper processes of that decade in this day and age.  Unfortunately, Accounts Payable today is fraught with the same manual processes that date back to the 70’s.  Sure, we have computers and amazing Accounting and ERP systems, but in reality, the only missing things from A/P departments these days are typewriters, GL punch cards and the haze of cigarette smoke. 

When it comes to Accounts Payable, paper pushing, printing, stapling, and collating is alive and well.      

ap automation

 Feel like you're stuck in the 70's? Share!   Photo credit media.tumblr.com/tumblr_mdv251FGX61r1pms1o1_1280.jpg 

One of the biggest obstacles hampering companies from making the move to electronic payments is the highly labor-intensive process of on-boarding, enrolling, and registering vendors into ePayment Programs.  As a result, more than 55% of the B2B commercial spend in the United States totalling billions of checks worth an estimated $10 - 12 trillion dollars, are still being printed and mailed.  More so, it’s documented that 90% of all US ePayments issued in B2B are being made by only 10% of the US-based companies. 

The barrier to making ePayments continue to frustrate corporate buyers and suppliers.  Buyers would love to streamline the process and suppliers would truly appreciate the ease of payments made electronically.  There are pluses on both sides: 

Benefits for Buyers: 

  • Improved level of productivity by reducing manual processes
  • Lower costs by reducing man hours and eliminating costly supplies like paper, MICR toner and others required for check printing
  • Highly secure V-Cards, single-issue credit card numbers -- the safest payment method -- tied to a specific vendor and invoice or invoices and dollar amounts
  • Reduced errors by eliminating re-keying of critical payment data
  • Secure online portal for on-boarding vendors to ePayments program takes burden off your staff
  • A more productive and empowered staff who have more time to focus on finance and not administrative paper pushing
  • Rebates paid monthly for V-Card transactions make an impact on monthly reoccurring revenue

 Benefits for Suppliers: 

  • More on-time payments
  • Improved visibility into the payment process
  • Downloadable remittance information lower costs by reducing man hours for posting payments and reconciling invoices
  • Reduced errors by eliminating re-keying of critical invoice and payment data
  • Secure online portal for registering for ePayment program to keep company bank information secure
  • A more productive and empowered staff who have more time to focus on finance and not administrative paper pushing

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If you feel like your company is stuck with 70's processes, because the new technology of the GL or ERP hasn't extended into Accounts Payable...OR if you haven’t yet found an appropriately priced, effective, and efficient payment solution that includes vendor on-boarding and doesn’t overburden your already stretched IT staff, please click the link below.  We’d be happy to help you out.     

 

Get Our AP Department Out of the 70s!



 

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