Are You Satisfied With Your Accounts Payable?
Your business’s finances are a delicate and complicated juggling act. You have to keep track of taxes, investments, accounts receivable, and accounts payable. Without a reliable, simple solution for accounts payable, you risk missing important details or spending endless hours sorting through all the numbers. Recently, a study by Tipalti revealed that about half of businesses are not satisfied with the methods they use to pay their suppliers. What else did the study find? Is there a solution that will ensure you are satisfied with your accounts payable processes?
The study polled 100 senior finance workers from companies in the United States that take in an annual revenue between $5 million and $250 million. The companies employ different accounts payable processes. For example, only about 37 percent use a payment automation system. Another 37 percent plant to implement such a system or are open to the idea. The companies that participated include businesses in retail, technology, business services, and media.
Increasing Pressure on Accounts Payable Departments
“As companies grow and expand internationally, their finance organizations are coming under increased stress as they try to keep up with ever-increasing volumes of payments to their suppliers and partners across the globe,” the CEO of Tipalti said on Business Wire.
The study found that about four out of five companies make more than 100 payments per month, and about three-fourths of companies must make international payments. Additionally, over 70 percent of companies that were dissatisfied with their accounts payable solutions spend five hours a week or more dealing with supplier payment operations.
About 66 percent of the companies in the study confessed they do not know if they properly screen payees according to rules set out in the Patriot Act. Compliance concerns also encompassed worry about making payments to drug trafficking or money laundering operations. More than half of the companies said they were not entirely satisfied with their current fraud monitoring methods.
The Benefits of Outsourcing Accounts Payable
On average, companies don’t have to deal with a complicated array of different ways to pay their suppliers. Typically, they use only three types of payment: wire transfers, paper checks, and electronic checks. However, that doesn’t mean that their accounts payable are simple or easy.
Outsourcing accounts payable to a company such as NextProcess is often the best solution for companies that are overwhelmed by their accounts payable issues. NextProcess uses a system that integrates payment automation with human expertise.
Outsourcing accounts payable through NextProcess begins with talking to experts, who will guide you through a payment automation setup. From there, they will handle the everyday tasks of your accounts payable so you can allocate your time and resources to helping your business move forward. They keep in-touch with you and conduct regular reviews so our partnership will grow continually stronger and more efficient.
Are you satisfied with your accounts payable solutions? If you are, do you think your accounts payable can become smarter and more efficient? If you are not, what do you see as the path to improvement? Outsourcing your accounts payable can give you the peace of mind that comes with entrusting your accounts payable to professionals who know how to do it right.