Over the last decade, it has become increasingly apparent that automating payment processes can significantly improve a company’s overall financial operations. If your company is still paying bills with paper checks, you’re not capitalizing on today’s best practices.
According to the Wall Street Journal, there are over 300,000 small and medium-sized businesses (SMBs) in the United States that have yet to automate their payment processes. U.S. companies lag behind their counterparts in Europe, Japan and Brazil when it comes to ePayments.
In the article, U.S. Companies Cling to Writing Paper Checks, it states, “American businesses and consumers wrote 21 billion checks in 2012, according to the Federal Reserve.” That’s downright scary, considering it’s more than four times as many checks as were written that year in the European Union’s 28 member countries!
Goodyear Tire & Rubber Co., for example, still pays more than 50 percent of its invoices with checks, even though the cost of writing a check is as much as five times that of an e-payment. Why? Why are companies clinging to the past and its outdated process?
The same reason consumers are often slow to adapt new technologies: we’re afraid of change. As unnerving and unsettling as change can be, there’s something even scarier about staying the same, especially when it comes to business processes.