Over 50% of firms are moving away from paper checks
For A/P, when it comes to making the jump to electronic payments, the question has shifted from “Why should we?” to “Why shouldn’t we?”
According to Global Payments: Maximizing Cash Flow with Electronic Payments and Process Automation — a recent report by the Aberdeen Group — Accounts Payable can reduce the cost of making payments up to 45% by moving away from paper.
Specifically, the report highlighted the average cost associated with the following payment methods:
- producing a paper check ($7.15)
- an Automated Clearing House (ACH) payment ($4.72), and
- a corporate credit card payment ($3.96).
When it comes to moving to e-payments, one of the biggest challenges for A/P departments is getting their vendors to buy-in. But an increasing number are firms are putting pressure on hesistant vendors.
In fact, 61% of the companies in the Aberdeen report are more likely to require key vendors to accept electronic payments as a condition of doing business.
Another key finding from the Aberdeen Group: The use of paper checks declined at over half of the U.S. companies in the report.
Readers, has your A/P department made the switch to electronic payments? Let us know how it went in the Comments Section.
- Share on
Free Training & Resources
Further Reading
What’s the one thing people fear most — even more than death? Public speaking. And for finance professionals, who often l...
The metropolitan areas where employers and employees want to settle are in flux this decade. COVID-19 accelerated the flexible on-site ...
With remote work here to stay, A/P has to work harder to verify crucial information, such as vendor bank account numbers. Unfortunately,...
Can a company’s cybersecurity weakness equate to “ineffective accounting controls?” The Securities & Exchange Commiss...
Cybercriminals who are out to steal your company’s money are getting smarter. Even a password that uses a capital letter, at least one nu...
The Supreme Court will be putting an end to the 39-year-old Chevron deference that’s been afforded to federal rulemaking agencies. Th...
