It's the spookiest time of the year! In honor of Halloween, we've rounded up the top five problems that are regularly encountered in the accounts payable industry. But don't be fooled, these problems happen all year round – so here is our top five list of scariest accounts payable problems!
1. Fraud & Theft
It’s hard to believe that in our high-tech world, fraudulent payments are still a very prevalent concern. A 2013 study underwritten by J.P. Morgan and the Association for Financial Professionals found that “61% of surveyed organizations experienced attempted or actual payments fraud.” This can be avoided by employing an AP process with end-to-end security.
2. Accuracy & Errors
Poor data quality ultimately results in poor decision-making. After all, decisions are no better than the data on which they are based. Reliable, relevant, and complete data supports organizational efficiency and is a cornerstone of sound decision-making. Your AP department should have a fail-safe way to guarantee input data to avoid these issues.
3. Inefficiencies
Time is money, so when your employees are spending hours on arduous workflow processes, money is being spent that could be better utilized elsewhere. The misuse of resources and wasted labor time on faulty processes can quickly drive up your accounting costs each month. An Accounts Payable automation solution will ensure that your employees are using their time effectively to fast-track monthly invoice processing.
4. Missed Due Dates & Late Payments
These things happen, but if missed due dates and late payments are a recurring problem, it’s a scary thought to add up the money spent on (non-profitable) expenses. Not to mention the missed opportunities of vendor discounts that are only available to early payers. By automating your AP, not only can your company avoid unnecessary fees but you can also potentially save money from eligible discounts.
5. Audits
Just saying the word auditor makes you cringe at the amount of work that could possibly be required from the accounting team. As many days as the auditor spends looking over payables documents will no doubt equal the number of days spent by your staff being pulled away from their regular work to find invoice copies, cheque stubs and chase down backup information. Though audits are unavoidable, your accounting team should have an organized, digital system in place that makes finding specific documents a breeze.
Do you encounter any of these problems in your organization? Contact us today for more information on how to solve your accounts payable problems.
Photo credit: Unsplash / Beth Teutschmann