Tear up those paper checks! Dynamics 365 Business Central makes ACH easy
The 2019 Federal Reserve Payments Study reported that in 2018 for first time, the number of ACH debit transfers exceeded the number of check payments in the US. However, 80% of AP professionals surveyed by PYMTNS.com say they use checks in their organizations to pay supplier invoices with only 63% saying they are satisfied with this process.
From a cost perspective, the choice is clear: estimates for the median cost of sending a check transaction range from $3.00 to $10.00, and for receiving a check from $1.57 to $5.00, compared to ACH-based transactions at only $.26 to $.60 per transaction/payment. According to the Association for Financial Professionals most companies make the change to ACH first to increase efficiencies, second to reduce costs and finally for fraud prevention. Most of those surveyed are already in the process of transitioning their B2B payments from paper to electronic. If you have not transitioned yet, the time is now – or is it?
Why you may be stuck in the past still paying by check
Management accounting practices seem to change at a slower rate than other business improvements, maybe due in part to the nature of accounting professionals and the function they support within an organization. For example, accounts payable professionals have a responsibility to identify and assess risk and ensure correct internal controls to mitigate that risk. Translated one way, “if the current process works, there is no reason to make a change.” I have yet to find an accounting or finance department where everyone eagerly embraces change and ...
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