Checks have been around since ancient times. They first appeared in America in 1681, when Bostonian merchants mortgaged their land to a “fund” against which they could write checks. Not much has changed in 336 years; according to the Wall Street Journal, more than 300,000 small and medium-sized businesses (SMBs) in the U.S. have yet to automate their payment processes. That’s ironic, given that many individuals pay their personal bills online. So, what is holding companies back from AP automation solutions?
As the professionals at AvidXchange explained in the webinar, The Scary Truth about Paper-based AP Processes, fear keeps companies clinging to paper. In the way consumers are often slow to adopt new technologies, businesses are comfortable with the processes they know. Unfortunately, paper checks can lead to some uncomfortable—and costly—challenges:
- High processing costs
- Loss from fraud
- Late payments
- Missed discounts
- Lack of payment visibility
Business-to-business (B2B) fraud, in particular, is a constant threat. Physical copies of sensitive information can be easily misplaced, altered, or destroyed. Checks can be lost or stolen. In fact, 48% of payment fraud can be tracked back to paper checks, because data is not protected. According to the 2017 AFP Payments Fraud Survey, 75% of the companies hit by payments fraud fell victim to check fraud—up from 71% in 2015.
AP automation solutions slay the beast of inefficiency
Accounting departments who use manual AP processes waste a lot of time and paper. Once an invoice comes it, it has to be opened, matched to a P.O., and routed to an approver who may sit on it for days or even weeks. Then the invoice has to be coded, compared to a budget, entered into your financial management system, and posted to GL. Then, finally, you cut and mail checks and file the invoice. Later, of course, you have to produce it for auditors.
AvidXchange replaces those manual tasks with automated processes—all you have to do is code the invoice, approve it, and post it to GL. Thanks to AP automation, you can:
- Eliminate paper invoices and checks
- Reduce manual labor and associated costs
- Shorten approval cycle times and reduce data errors
- Improve visibility into invoices in the AP process
- Reduce risks of fraudulent check activity
- Eliminate duplicate payments
- Streamline the audit process
Automation protects against fraud
By enforcing strict adherence to business rules, AP automation
reduces the risk of B2B fraud.
By enforcing strict adherence to business rules, AP automation reduces the risk of B2B fraud. With AvidXchange, every invoice you process is scrutinized for legitimacy before it’s entered into your accounting system. In addition, all of your company’s invoice and payment information is securely stored in a cloud-based environment.
The cloud also provides 24/7 access to AvidXchange from anywhere you have an Internet connection. There’s no need for additional software or hardware. Plus, the software configures dynamically to multiple devices, such as Android and iPhone smartphones, tablets, PCs, and Macs.
Fight the fear with RKL and AvidXChange
Don’t be scared of change. The professionals at RKLwill help you design and implement an AP automation solution that makes you more efficient and aids in the fight against fraud.