By converting to ePayments or digital payments, an organization can expect an immediate return on investment (ROI)
In today's digital world, no one really uses checks regularly for their personal transactions. And now, receiving a paper check seems like something out of the 70's. And the steps to process the check file are also very dated. In business, your advanced ERP may output the file seamlessly, there's just no getting around the folding, stuffing and mailing unless you outsource that to a department with machinery to handle that for you.
Overcoming the monumental barrier of collecting supplier bank instructions is typically close to the top of the list of reasons why companies rationalize continuing to issue check payments.
Who can blame the CFO or CIO for their lack of enthusiasm toward a project that is seems like it could take months or years to manage when their staffs are already stretched thin managing other operational requirements? Relatively speaking, it seems that their decision to stick with checks just seems smarter.
Many businesses today are leveraging new payment technologies to issue payments within accounts payable to streamline processes, cut costs and reduce risk.
One of the newest forms of electronic payments is vCards, which you will find can make your process inexpensive, fast, convenient, all while providing a higher level of security to your company.
Purchasing cards are prevalent in the B2B payment world because they are convenient and they offer cash-back rebates. They are used by many companies despite there being another, better and more secure option. Because purchasing cards have become somewhat the standard for credit payments, the risks and adverse affects of have been disregarded.
But they shouldn't be.
Virtual cards have been available for use for some time, and the security and rebates they offer far outweigh the perks of using a purchasing card for issuing Accounts Payable payments.
According to the NAPCP, here is the positive aspect of using a purchasing card for PAYERS:
But, MOST of the PROS for P-Cards are on the PAYEE side of the transaction:
As you can see, most of these positives, are for the PAYEE and not the PAYER. In addition, there is the impression that using a purchasing card is as SAFE for PAYERS as the alternative, virtual cards.
Being great at what you do means being as efficient as possible. Accounts payable and accounts receivable departments can be full of inefficient processes that can hold a company back. In this article, we will help identify the six wasteful areas and activities that can kill your business efficiency.