Research Findings from AP Survey (Video)
Taking a deep dive into the key findings from a study conducted by Gatepoint Research on the state of accounts payable and global supplier payment processes
Rob Israch, Chief Marketing Officer at Tipalti and Doug Barth, co-founder and principal analyst at Gatepoint Research discuss why Tipalti sponsored this survey and the details of the research results.
Says Rob: “Tipalti customers and other accounts payable departments are exhibiting a general trend of increasing complexity and inefficiencies related to paying global suppliers. The entire process of paying suppliers can be a very time-consuming effort rife with error, but it’s also not something most people want to spend too much time thinking about.”
This research of senior-level finance executives looked to answer:
- How big of a pain is it?
- What areas are most problematic?
- How satisfied are companies with their approach?
- How companies are getting it all done?
- And where can companies improve?
The research also reveals that supplier partners who are paid in their preferred method tend to want to work closer with a company. As your supplier base become more global, suppliers in each region each have different payment preferences and each payment method has different information that needs to be collected by country – and some partners will also want to be paid in their local currency – so having too limited a selection of payment methods may also limit a company’s own ability to expand and attract your partner and supplier network. For example, if you want to pay someone in India, ACH or International ACH/eCheck is actually a very bad choice because there are inbound fees associated.
Poor payment processes also lead to greater risk and exposure. Once you send money out, and if you inadvertently pay someone you shouldn’t have, there’s a good chance it’s not coming back. Putting in manual controls to deal with this can be cost prohibitive and it’s clear from the penalties being levied on companies who don’t follow tax and regulatory requirements that things need to change.
Working on manual payments is truly unrewarding. That’s time better suited for strategizing and improving on cash flow insights and forecasting. If you have an hour, would you rather chase down that vendor for their W-9 or W-8 forms and log in to the bank account to wire funds to 50 suppliers, or would you rather finalize requirements for that ERP accounting project?