CFOs can improve command over short-term cash flow, mitigate fraud risk, and create time for more value-add tasks.
Digital disruption is rapidly shifting the roles and responsibilities of CFOs, according to Digitalist Magazine. CFOs are now responsible for creating value and disseminating technical fluency throughout their organization, and CFOs of middle-market businesses in particular have been sitting on a big opportunity to accomplish these objectives by streamlining accounts payable.
Today, accounts payable represents the greatest opportunity for improved efficiency in organizations. By streamlining AP, CFOs can improve command over short-term cash flow, mitigate fraud risk, and create time for more value-add tasks. Here are three ways AP Automation technology enables them to accomplish all of this.
1. AP Automation makes it easy to optimize cash flow simplifying the transition to paying vendors electronically
There are numerous benefits of electronic payments such as faster payments and more flexibility around the timing of payments. Businesses can ensure vendors are paid on time, and even capitalize on early pay discounts that the lengthy check payment process had previously made challenging to earn.
The greatest hurdles lay in making the transition, figuring out which vendor can be paid with different electronic methods, and learning an entirely new process. However, AP Automation addresses all of these hurdles, as AP Automation vendors can take on the groundwork of getting set up and also create one simple and uniform process for every payment method.
2. AP Automation helps CFOs protect their companies by mitigating fraud risk
According to AFP, the frequency of B2B payments fraud has increased for the sixth year in a row as 82% of organizations reported incidents in 2018.
While no amount of time or resources can truly eliminate the risk of fraud, CFOs should be keen to identify simple steps that can go a long way with mitigating the growing risk of fraud. AP Automation provides tools in order to mitigate fraud risk by building payment controls into the process of paying every invoice:
Segregation of Duties
Due to the fact that most fraud incidents are committed by trusted employees, it is important that checks and balances are in put place. Having separate duties for managers, approvers, and authorizers blocks internal fraud by ensuring that payments are processed correctly because no one person becomes responsible for or has access to everything.
A company’s security is only as strong as its password protection, and weak passwords lead to security breaches. Dual-Factor Authentication adds another layer of security protection by requiring employees to enter a unique security code that they receive via text or email every time they release funds.
Positive Pay Files
Positive Pay Files are another way that AP Automation mitigates fraud. This method is used to prevent check fraud as banks ensure that the checks a company issues match up with those it presents for payment.
3. AP Automation enables CFOs to accomplish more with the resources they have in place
In this fast-paced and increasingly technologically dependent world, businesses will benefit by working smarter not harder. AP Automation offers a streamlined process which increases organizational efficiency by 60% as CFOs will not have to be in the office to process payments with the implementation of mobile and web-based communications.
By switching to an accounts payable automation solution, businesses have saved as much as 64 hours each month. The time saved with AP Automation will allow teams to tackle more value-add and strategic projects that will move their business forward in other ways.
The simplest way to transition your organization to AP Automation
Currently, CFOs are partnering with MineralTree to automate accounts payable and are immediately seeing an increase in efficiency and a decrease in costs related to the accounts payable process. In fact, an investment in AP Automation with MineralTree has paid for itself within 60 days of implementation.
MineralTree works with thousands of middle-market businesses and continues to enhance its product to further streamline and eliminate inefficiency from accounts payable in new and innovative ways.
Curious to see what your team can look like with AP Automation? Contact MineralTree for a personalized demo.