BY KARLA FRIEDE
If your credit union’s AP department hasn’t automated supplier payments yet, it may be time for them to seize the leadership role and embrace automation, rather than waiting for it to be forced upon them – as it inevitably wil. Only good things can come of such a rare opportunity.
When is the best time to automate supplier payments? Today’s cloud payment solutions are relatively easy to implement, and they deliver such a large return for a nominal investment that there’s never truly a bad time. But the best time is when accounts payable can take a leadership role, rather than having automation thrust upon them by circumstances. This is an opportunity for a rare career win for accounting.
For decades, AP has been a low priority for technology investment within most organizations, and they have had their heads down just trying to keep up with the workload in front of them. Leading a technology transformation is the furthest thing from their minds. Unlike marketing, which has become one of the biggest consumers of technology in the organization, when people in AP have a problem, their reaction is to throw people, not technology, at it.
And when it comes to payments specifically, there’s more of a tendency to look to their bank, because up until recently, banks were the only game in town. But banks haven’t innovated in B2B payments for decades. Accounting professionals may not even be aware that a new generation of cloud and API-enabled fintechs are finally making supplier payments efficient. Waiting for a trigger Even if they are aware, after so many decades of hardly any technology innovation, there’s a tendency to sit back and wait for some kind of trigger to drive automation. That might be a new CFO, an ERP upgrade, a merger or acquisition, or simply facing the prospect of hiring more people just to write checks as the company grows. But there’s a big difference between passively letting change happen and taking the opportunity to lead.
All of these events cause an organization to pause and reflect, and to look for better ways to do things. If your AP department is still living in an archaic, paperbound world in comparison to the rest of the business, that’s certain to draw scrutiny, and rightfully so. The absurdity of writing checks in a day and age when people are paying with smartphones and using fewer checks in their personal lives will eventually drive businesses to look for a better solution. There’s an opportunity here to take the lead in bringing change. Moving from paper checks and a patchwork of bank payment programs to a totally automated payment solution in the cloud returns an average of $5 per payment. If you’re making 100,000 payments a year, your organization will see benefits of $500,000 a year, every single year. There are comparatively few opportunities in accounting and finance to lead a technology initiative with this kind of positive bottom line impact.