8 THINGS YOUR CFO NEEDS TO KNOW ABOUT EPAYABLES
Few things are both as costly and enduring as the reluctance that companies have about going paperless with their business-to-business (B2B) payments. Learn the reasons why your company should convert to an integrated payables solution that will change your company's life!.
Over the past several years, many corporations have been working diligently to upgrade from their legacy accounts payable systems to be more efficient.
Fast forward to today, and many new accounts payable systems are in place and primed for businesses seeking to revamp their payment processes to suppliers. A critical component to improving the payment processes is to ensure the entire AP department is engaged, along with the finance team, and works together toward common strategizes to remain competitive and not to create internal chaos.
To improve your accounts payable processes means streamlining and automating your systems. Payment automation gives you the ability to pay suppliers electronically, faster and more secure all while saving time and generating revenue for your company. Who wouldn't want that?
Here are the eight (8) reasons why electronic payments for your business will change your life:
Cutting checks are 10 times more costly to businesses than making electronic payments.
According to multiple industry studies, high cost is the principal reason companies have made the transition to electronic payments to suppliers away from paper checks.
The cost of cutting a paper check can range from $5.91 to $30 or more!
A single business check can amount to more than $30 once the time and costs of writing, mailing, collecting, and reconciling the check are all accounted for.
Company's that embrace automated and electronic payments (eg: virtual credit card, ACH, ACH-for-fee, eCheck) make it easier and quicker for their clients to pay them on time, leading to higher accuracy in cash forecasting.
Automating payment processes means that your company can pay your suppliers efficiently, cheaper, more securely and with minimumal disputes.
Check fraud has been on the rise since 2015 and “fraud control” is one of the top benefits of sending or receiving electronic payments.
Paper checks are not only expensive, but they also provide a significant opportunity for fraud. The results of the 2017 AFP Payments Fraud and Control Survey indicates that paper checks are still the most common and dominant payment form targeted in incidents of payment fraud against businesses.
Wire transfers are also vulnerable to fraud and are an expensive form of payment for your company as well as the recipient.
According to the AFP survey: In 2016, wire transfers were the second most often targeted payment method attacked by fraudsters. 46% percent of corporate practitioners report payment fraud via wire transfers. It's also important to note a wire transfer can cost approximately $15-$35 or more for both the sending and recipient of the payment and it cannot be retracted.
Both the payer and the supplier will benefit from sending and receiving electronic payments as opposed to writing a check because it provides a “working capital improvement.”
According to The Hackett Group’s 2017 US Working Capital Survey, “The working capital performance of US companies didn’t shift dramatically in 2016, but the changes that occurred are always notable as an economic barometer. Once again, companies left more than $1 trillion ($1,014 billion) in working capital on the table and ignored a proven opportunity to increase profits by as much as 20 percent.”
Optimizing supplier payments is essential to ensure winning B2B customer relations across industries.
A company’s payment process can make a significant impact on supplier relationships and the value each partner realizes on the back end. The ease of electronic payments is key to enhancing and optimizing these relationships.
No matter whom you speak with one adage is true: the future is electronic, not paper!
Paper check payments are becoming a payment method of the past. Regardless of the size or complexity of your business electronic payments will help your company reduce costs, mitigate risk, streamline processes, improve working capital and can generate a new source of revenue.
Many companies feel that their treasury bank can provide them with an accounts payable automation solution. Even though this is true, what mega banks won’t tell their client is that they will be left to manage and grow their electronic payments program all by themselves.
If your company is seeking ways to automate and improve payments to your supply chain, then we recommend implementing an Integrated Payables Solution. VSPIRE helps middle-market businesses improve payment efficiencies for suppliers and generates a new source of revenue so you can improve supplier relationships and grow your business.
ARE YOU READY TO TAKE THE FIRST STEP TO GO PAPERLESS?
If YES, then click "Start Now" to determine if your business qualifies to transition to electronic payments.
Transitioning from paper checks to electronic payments to pay suppliers is not complicated, but trying to determine if your company qualifies and where to start can be overwhelming, time-consuming and confusing. Click the "Start Now" button below and answer a few questions to determine if your company is eligible for electronic payment solutions. If so, VSPIRE will walk you through the entire process on how to make this happen for your business.
This questionnaire is absolutely FREE to determine if you qualify.