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Estimates claim that up to 75% of accounting-related costs can be mitigated by automating the payment processes.
Yes, you read that correctly. While navigating the accounts payable jungle, employees in the accounting department must routinely clear a multitude of hurdles to effectively keep the money and labor flowing.
Hurdle 1: Payment Types
Checks, credit cards, and wire transfers each offer their own unique quirks regarding payments, as they all have a different work flow. Depending on the volume of payments your accounting team has to deal with, this could be absorbing several hours of their work week.
Hurdle 2: Approvals
Manually approving every payment burns valuable time and money. There are still a significant number of companies that utilize the two signature check method. This isn’t the nuclear football, which allows the president to authorize atomic action, so let the cloud do the heavy lifting.
Hurdle 3: Reconciliation
Different payment reconciliations require different systems for information that is likely in several different places. Checks must clear, and vendors can’t see the money until it’s in their account. In this case, different does not equal better.
Hurdle 4: Follow Up
Payments must both be received and reconciled, but what happens if the process incurs a clerical error? What if an address changes? Worse still, vendor’s have no visibility into the payment process, so what sweat equity must you dedicate to fielding their questions? Extensive follow up can prove costly.
Hurdle 5: Reports/Audits
Sifting manually through paper invoices in a warehouse or tracking wire transfer numbers is inefficient and labor-intensive. With accounting professionals being asked to contribute to strategic-level planning, mundane tasks that not automated could be detracting from strategy.
Read the full report “The Case for Payment Automation” here.
To learn more about automating your payment processes, click here.