Several businesses have started automating their accounts payable (AP) processes. However, talking of the actual scenario, numerous companies have not yet adopted AP automation. They still prefer using paper receipts and invoices for payments. So, although AP automation is becoming popular, why are businesses still hung up on using paper checks?
The popularity of paper invoices and checks: acknowledging the reasons
Yes, indeed, paper checks are still popular! Here’s why:
The history associated with paper checks: The extensive history that explains how paper checks came into the picture about 300 years ago is a huge reason why businesses still hesitate to automate the AP processes. The fact that checks overcame the safety issue of transferring money in the past made paper checks such a widely accepted form of payment.
Paper checks are tangible: Especially for the older demographic, having a physical account for their finances is a big reason why paper checks are popular. It is simple, and it is tangible. Many people still feel that dealing with finances in the form of paper checks and invoices is safe.
CFOs’ perception of AP automation: This is probably the biggest reason that has caused much resistance to invoice automation. The more businesses look into how much value AP automation adds to companies, the faster and broader the shift to automated AP processes.
A study in 2013 by the Pew Research Center showed that 54% of young adults (18-29-year-olds) opt for online banking, while 40% of adults aged 30-49 years and only 14% of adults aged 65 years prefer online monetary transactions. AFP (Association for Financial Professionals) survey showed that approximately 77% of financial fraud commits using paper checks. According to the AP Automation report, invoice automation can reduce costs by 81% and increase efficiency by 73%. Applications like GetMyInvoices import invoices from multiple sources like Amazon and over 10,000+ portals, which reduce manual waiting time, and delays in getting invoices from all your partners.
Advantages of automating invoice processing with software
Let’s have a quick discussion about some of the key benefits of automating invoice processing:
Invoice automation is cost-effective: Invoice automation through quality software can cut costs in innumerable ways, such as lower expenditure for labor, printing, mailing, interest, overhead, and late fees.
Performance optimization and higher cash flow: Payments are done cost-effectively and expedited if businesses automate their AP processes. The money saved can be utilized for investments, better training for recruits, expanded offerings, and so on.
Greater tax compliance: Since the invoice is an essential document for proving tax compliance, avoiding invoice misplacement incidences altogether with invoice automation is an advantage. In other words, complying with tax regulations becomes hassle-free.
Less cumbersome: The time taken for suppliers to generate invoices, send them, print, review, approve, and mail invoices is a significant drawback of using paper checks. Automation can eliminate these cumbersome steps and therefore save time and money for businesses.
Higher efficiency: Invoices that are not automated are subject to human error, costing businesses a lot in terms of time and money. Invoice automation overcomes these obstacles by improving consistency, accuracy, control, accountability, reporting, archiving capability, and transparency. GetMyInvoices automatically imports your invoices and processes them with features like scanning invoices and matching them with your bank transactions.
Although paper checks are trendy and seem to promote a sense of security and reliability, there are grave repercussions and drawbacks to using paper checks. Try GetMyInvoices for digitization of paper-based AP processes and later move ahead to paperless processing across your organization. The characteristics of invoice automation prove to be more reliable, efficient, cost-effective, and flawless, especially when done through effective software.
So, what would your business opt for among others? The answer lies within!