In this blog series we are highlighting the five top trends in purchase-to-pay for the coming decade. What purchase-to-pay trends should CFOs know about in 2020? And how can companies respond to these trends? We will try to answer these questions!
Today we reach the topic of minimizing risks. Risk Manageent of financial processes is critical for the business and this is also valid for the purchase-to-pay process.
Would you prefer to read this article in Swedish? Then click here
Trend 3: Minimizing Risks
While technological innovation improves the efficiency of back office operations, technology is also providing effective tools for exposing fraudulent activity as well.
By 2020 every company should make sure to minimize at least these two risks: fraudulent invoices and human errors.
1. Fraudulent Invoices
Scam messages have evolved considerably in recent years. Despite being audited a convincing scam message and invoice can slip into payment if organization does not utilize the proper tools that block most of the most common scam attempts.
Earlier this year, the BBC wrote that in 2018, 3,280 fraudulent scams were reported in the UK, costing companies a total of 93 million pounds. About 25% of this amount was recovered. Nevertheless, only one fourth of companies considered the possibility of fraud in their own financial processes.
Purchase to Pay system allows you to spot suspicious activity and eliminates the most common scams. The system provides accurate information on contracts and invoices, and the inspector always knows where to check if there is a suspicious invoice.
2. Human error
The process automation system also reduces other human errors and the resulting risks. SourceToday listed the most significant pain points in the purchase-to-pay process, and one of the most significant is manually adding invoice information, which is reduced by automation. Expensive human errors also occur in remembering due dates, slow approval, and renewing contracts, which can be reduced by a solution.
To avoid human error, processes should be made as easy to follow as possible, and the necessary tools should be made available to the entire organization. When the right and safe tools are available to all, human errors and scams can be avoided more effectively.
Watch out for our next article in this blog series, where we will discuss the advantages with implementing a global purchase-to-pay solution in an international or global business.