With the proliferation of automation in Manufacturing, Human Resources and Sales & Marketing, do you think your peers within your company would be surprised to learn that your Accounts Payable department still writes paper checks to suppliers and vendors? Would your family and friends think that working where you do that accounts payable systems must certainly be automated?
When talking to newly onboarded clients, they often admit the barriers that held them back from transitioning to accounts payable automation in the past.
Do any of these barriers sound familiar?
Barrier #1- Not enough time
Do you know that companies lose an estimated 5% of their revenue annually due to fraud, according to the 2016 ACFE Report to the Nations?
We don't want you to be one of them.
Your payment system should have multiple levels of security, especially when used for issuing ACH (Automated Clearing House) payments. Fraud prevention along with fraud detection strategies embedded in your payment platform and processes should hinder the capability of a "lone wolf attack." In days gone by, companies might have been compelled to use a single computer in a room with closed circuit TVs to protect the business files.
Today there should still be levels of access built into your system and for your team to follow, and in honor of International Fraud Awareness Week, here are the seven best practices for payment fraud prevention:
Over the last five years, there has been a decline in the use of paper checks for business to business payments. Many forward-thinking businesses have grasped the financial and eco-friendly benefits of reducing paper check processing. Businesses that have converted to electronic payments have found that their efficiency has increased with the reduced use of paper.
"With the number of businesses equipped to handle faster, more secure, and less fraud-prone payment methods, the continued use of checks in business to business payments is both astounding and disappointing," Wex Inc., a payment solutions company adds. "Electronic payments are 10 times cheaper than checks. Writing checks to suppliers is not only time consuming and inaccurate, it’s wasteful in terms of cost, as the average cost of writing a business check ranges from $4 to $20."
This is no surprise. The transition from paper-based to digital payment processes allows for a faster, more secure, and easier to use payment platform. It simply takes less time to find and process information.
Financial technology, or FinTech, has opened new avenues for electronic payments in business-to-business companies. Many companies have strayed away from financially (and environmentally) costly paper checks to inexpensive and time-efficient payment automation, saving money in the process. Heavily depended on by investors, consultants, multinationals, startups, and entrepreneurs, FinTech exists to help solve these problems.
The technological revolution, dubbed the fourth industrial revolution, has gained traffic in the corporate world by fundamentally changing the way many businesses interact with consumers. With the rise of digital currency and a surplus of investment options in payment automation technology, is the next Industrial Revolution upon us?
Part Four in the Blog Series: How Payments Impact Your Business
Payments and the way they are made can have a big impact on the business environment. Starting with a reduction in the labor hours it takes to issue payments, to the reduction in the supplies and materials, to an increased certainty of cash flow; payments that are processed electronically offer a substantial impact to your bottom line. Eliminating manual processes of outdated payment processing methods, which put a strain on the efficiency of an organization, creates a significant improvement to the bottom line.
By moving your business from paper check printing to electronic payments, you will experience many benefits including freed employee time, much lower costs per transaction, and there's even an opportunity for monthly cash rebates — creating a new revenue stream for your company.
Part Two in the Blog Series: How Payments Impact Your Business
Keeping employee morale high is one of the best things you can do to instill loyalty and maintain a productive workplace.
Have you ever stopped to think about how payments can impact employee relations in the Accounts Payable department of an organization? Payments can significantly impact employee relations!
Streamlining your payments to electronic payments changes the traditional payment process allowing employees to spend less time on the physical act of printing, folding and mailing -- all administrative tasks -- and more time on their actual financial roles in the company. The result may allow them to feel more productive and empowered.
An experienced Accounts Payable Manager plays the role of a supervisor, which makes you responsible for quickly and adequately processing payments for all invoices that are received, as well as ensuring each member of the team accurately performs their duties. In the best scenario, your team is cooperatively working within the system or standard operating procedures that they feel maximizes their impact while minimizing redundancy and room for error.