Unsecured B2B Electronic Payment: The High Risk Of Inaction
B2B ELECTRONIC PAYMENTS
The risks of inaction with regards to B2B electronic payments for accounts payable automation have become increasingly apparent over the past decade. Without the appropriate software to facilitate electronic transfers, organizations are heavily exposed to financial and personnel risks. Considering the alarming and consequential financial exposures associated with non-automated payments, it has become essential for C-Suite executives to consider meaningful and effective measures to secure their accounts payable processes.
The financial risks that occur in non-automated payments environment are, by far, the most dangerous for any business. Capital outlay is exposed to greater risk, because funds are exposed to the hazards of fraud, technical failure or personnel error. With manual methods of payment also come exceptional operational costs associated with laboriously maintaining wide range of accounts payable processes. In addition, manual payments environment is prohibitively slow?payments must be made at the end of the month and not automatically throughout, leading to potential cash flow problems.
The personnel risks associated with manual payments environment are equally daunting. The likelihood of data security breaches due to human error is significantly increased. The payee?s information, for example, could be tampered by employees with ulterior motives. This increases the chance of data breaches, costing dearly in terms of damages to the organizations reputation.
Fortunately, software solution exists that is effective in each facet of risk reduction. Accounts payable automation software enables secure, automated payments and allows organizations to monitor their processes throughout. This technology also drastically reduces the potential of data security breaches due to human error, as all sensitive data is kept within the system. With automated payments, cash flow can now be managed using automated replenishments, eliminating the issue of wonky and sluggish payments.
In conclusion, C-Suite executives must recognize the perils and costs that traditional manual payments can cause. Strategically observing the mechanism of accounts payable automation software, organizations can now take steps to mitigate the associated risks and secure their financialsuccess.
