While many different options are available to streamline payments, organizations typically use the tools that they’re most comfortable with and which they perceive to be the simplest and safest. Contrary to popular belief, these tools—including paper checks—are not only leaving businesses vulnerable to fraudulent acts but are also creating higher processing costs, late payments and missed discounts that often add up to millions of dollars each year.
If you want to safeguard yourself against these headaches and perhaps even see some additional revenue added to your bottom line, follow these simple steps:
Join the Movement
More employers are experiencing the benefits of switching from paper processes to fully automated and electronic platforms. Employees have more time to focus on higher level tasks because they no longer need to spend hours on line-item reconciliations, and managers are more relaxed while simultaneously more in control. The ability to earn additional money just by paying the bills is an additional benefit for club operators. You can’t be afraid of change. It’s time to join the movement.
Throw Out the Paper Checks
Not only are paper checks easy targets for fraudulent activity, but they create an inefficient use of time. Printing, waiting for signatures, mailing, waiting for the check to clear, and then the always-fun task of manual reconciliation is an arduously long process. Today, the idea of adopting more streamlined approaches to paying vendors is no longer new. More clubs are eliminating old school paper check systems for modern electronic and automated AP systems. Be bold. Throw out the paper checks.
Regain Control of Your AP Department
Accounts payable automation and virtual credit cards are the most current and secure solutions to the problem of payments fraud. By automating the payments process and implementing single-use virtual credit cards, clubs can reduce the risk of fraud, ensure employee compliance to spending policies, increase revenue through earned rebates and streamline expense reporting. The first concern for many regarding this system is that it is expensive and complicated to implement. It’s not. It can actually be quite simple thanks to next-level programming features that can fold right into your existing software. The controls you’ve enjoyed remain exactly the same, it’s just the visibility into the payment process that’s improved. In as little as two weeks, you’ll experience immediate efficiency gains, reduced costs, and new revenue. It’s time to realize an easier way to pay vendors and take the possibility of fraud out of the AP equation.
Get Your Vendors On Board
Vendor relationships are the key to making an automated AP system work. The vendors have to be on board to being paid electronically or with a virtual card. There are many different approaches that can be taken to get the buy-in of vendors, as well as many potential benefits for them—getting paid like clockwork or even a little bit early is always a plus. With the right payments solution provider, kid gloves will be used and relationships will be leveraged to ensure maximum vendor enrollment and subsequently maximum rebates earned. You may not realize it, but many of your vendors are already using electronic payment platforms with other clubs, so why not you?
Mary Beth Fisher is national sales manager at CSI globalVCard. She can be reached at [email protected].