Aug 14, 2020 12:32:02 PM
It’s a thought we’ve all had time and again as we mindlessly stuff the industrial shredder or watch the Iron Mountain guys and gals wheel boxes and boxes of paper checks and invoices off to storage. “It’s backup,” we say, “that we need to hold onto for five years”. Or is it seven? No one really knows and, the truth is, we shouldn’t have to. Not in a world where we’ve built machines for the very purpose of providing near-instantaneous, secure communication, and digital storage.
Paper checks are a part of the same mindless process. Once the Titanic of the B2B payment industry, checks are now seen as a meager tugboat. Paper checks cost businesses a staggering $45-150 billion per year. For those of us not in the billionaire club, let’s put that in perspective. A stack of $1 billion one-dollar bills would measure 358,510 feet, or 67.9 miles high. The paper payment industry is costing everyone, on the low end, thousands of miles of stacked dollars.
That’s not to mention the time (*ahem, money*) wasted in finance departments the world over, as AR and AP Specialists manually enter endless rows of data, input lengthy GL codes, and stuff & lick envelopes carrying high-dollar checks that those always-busy finance managers had to be chased down to sign off on.
Enter 2020, a year in which a global pandemic ground many of these manual payment processes to a near-dead halt, and proved just how fragile, antiquated, and costly the old world of paper is. AP teams have had to zip up their hazmat suits and make weekly trips to the office to collect, scan, and mail physical invoices and checks, a process that, more than anything, disrupts workflow and efficiency.
“But it was always this way,” you might say. Why fix a system that isn’t broken? Well, the system is broken because it’s costing companies money and lots of it. After all, technological advancements have made it possible to not have to use paper at all.
The solution to all of this is proven and relatively simple. Integrated payment solutions address the majority of these paper-based inefficiencies. With an average materials and labor cost of $8-10 for the average check payment (against a free virtual payment or ACH cost of less than $1 per transaction), businesses that seek to thrive in the 21st century need to swim with the current and not against it. And how? By taking the plunge and going paperless.
The inefficiencies of paper are everywhere: duplicate work, added time for manual tasks, errors, etc. Kontrol’s integrated payment solution enables you to shift all of your unique payment practices into one consolidated process. Through Kontrol’s automated payment platform, one single payment instruction ﬁle is submitted in order to pay every supplier via virtual card, pushpay, virtual payment, ACH, or check. If you are interested in learning more about integrated and virtual payments, please contact our team of experts. We are here to help you and even review your current payment mix to see how we can best optimize your current payment plan.