According to research by PayStream Advisors, paper-based processes still dominate many accounts payable operations, but there has been significant movement toward electronic payments and other forms of accounts payable automation technology in recent years. While other industries have made great strides in automating their processes, the construction industry has been slower to adopt automation.
The construction industry is still very paper-based and in a paper-based environment, your company’s documents are constantly at risk. Physical copies of sensitive information can be easily misplaced, altered, or destroyed. If these documents are lost or tampered with, then you no longer have access to the data necessary to effectively operate your business.
Research has shown that paper documents and checks are leading sources for fraud, because data is not protected. In fact, 48 percent of payment fraud can be tracked back to paper checks. According to a survey by the Association of Certified Fraud Examiners (ACFE), nearly 70 percent of corporate respondents have been victims of check fraud. AP and payment automation ensure that your company’s payment information is secure in a cloud-based environment that can be accessed anywhere that you have access to the internet.
One of the common myths of payment automation is that Controllers and CFOs lose control in the process. Actually, automation provides more control over and increased visibility into the payment process. With a few clicks of the mouse, you can search for and retrieve payment information at any time and from anywhere you have access to the Internet. Not only will you benefit from better visibility into spending, but your subcontractors will get paid faster too!
Want to learn more? Register for our webinar with AvidXchange on Thursday, February 23rd at 2:00pm EST to see how your construction company can benefit from payment automation.