The Future of Payables: Paper-Based Processes Give Way to Automation

In the corporate payments space, automation continues define innovation in of A/P, A/R, and every accounting process in between. CFOs are investing in new enterprise systems and cloud-based software to reduce their accounting teams’ manual workloads and reap the financial rewards of faster, more efficient payment practices.

Yet, many organizations rely on manual processes and paper-intensive workflows to pay suppliers and manage their internal administration—until, that is, their pain points begin to outweigh their more traditional ways of doing things. In fact, most financial professionals come to find that their paper-based processes are to blame for their biggest challenges with budgets and customer service. Here’s why:

Paperwork itself tends to get stuck within a manual process

When it’s not easily accessible, the work takes longer to do. Employees in the approval chain can’t review or sign-off on payments when they’re not physically in the office—or when the papers they need are hidden under stacks of mail. And the more people there are in the approvals pipeline, the more opportunities the papers have to get lost in the shuffle. When paper gets legitimately damaged or lost—accidentally filed with something else, for instance—it can be overlooked and create additional work for someone later.

Data that lives on paper needs to be manually digitized

When information needs to be keyed into spreadsheets and accounting systems—usually, both—it’s remarkably vulnerable to human error. Plus, the time it takes the employee to organize the information, type it in, match transactions, and move through a manual reconciliation process is time they could be spending on more strategic, business-building activities, like reporting.

And let’s not forget these other downsides of manual processing:

• Missed financial opportunities – leaving early payment incentives on the table

• Document management headaches – stacks of invoices, checks, statements, and more that need to be filed, stored, and manually retrieved

• Frustrated customers – suppliers, partners, and even employees tolerating lengthy payment servicing time

Moving Forward

Legacy systems are typically the guilty party when it comes to holding up progress for some companies, as are concerns about data security and a fear of change. The fact remains that the future lies in automation, and in order to remain competitive and cultivate profitable business relationships with partners and suppliers, even the most conservative accounting departments need to change with the times.

As the paper goes away and information is digitized, payables are landing in the realm of the web. Virtual payment cards and mobile payments—just two emerging payment methods—are picking up steam in the B2B marketplace. Finance departments are turning to both in-house and cloud-based solutions to provide faster, more cost-effective workflows, built-in controls, higher-quality data, optimized cash management, enhanced visibility into their processes, and real-time access to analytics.

These forward-looking organizations are embracing automation and the many capabilities it puts at their fingertips. They’re filing away the last of the paper—and allowing technology to do their heavy lifting.