Recent investigation finds systemic issues including lack of oversight, cooperation and employee burnout are to blame
JACKSONVILLE, Florida., October 5, 2022 /PRNewswire/ — Invoice fraud is on the rise. In the United States, companies lose on average $300,000 per company and per year to fraudulent invoices. Even more shocking is the fact that one in four finance professionals (25%) are unaware or even unable to estimate the cost of invoice fraud to their business. This lack of visibility is likely due to the messy paper trails that continue to plague the billing process.
Medius, a leading provider of AP Automation and broader spend management solutions, today released the Financial Professional Census. The report examines the top challenges for finance teams in 2022: increased fraud, late supplier payments, strained relationships with procurement and talent retention. The full report can be downloaded here.
Jim LucierCEO of Medius, said: “Billing fraud is on the rise as global supply chains become increasingly complex. Finance and Accounts Payable teams face many challenges in a commercial environment. increasingly complex. They need technology to move from automation to eliminating: , fraud and wasting time on unnecessary manual tasks. As a technology provider, we still have work to do to help them solve these challenges and we are 100% focused on that.”
The blame game
This level of invoice fraud is a huge blow to businesses in the US, meaning AP teams are under constant attack. Finance teams spot an attack of invoice fraud every month and that doesn’t include fraud that flies under the radar. But who is to blame? Nearly half (49%) say finance and IT are responsible for preventing and reducing invoice fraud. And despite being considered a shared responsibility, only 18% of respondents frequently collaborate on the issue.
Break down the silos
It’s safe to assume that procurement and finance teams work closely together, but research found that almost 1 in 5 (18%) say they don’t work together at all. In fact, less than 1% say finance professionals speak to their procurement team every day and 25% say they only speak once a week. Conversely, 1 in 5 say that to perform their job to the highest standards expected, they need to work more closely with procurement teams. Respondents also say this disconnect leads to a lack of transparency around business priorities (48%), increased costs to the business (36%), and errors due to working in silos (31% ).
Process for the process
Finance teams are known, good or bad, for the processes they create and enforce for a business. However, according to survey results, they are behind on payments, with 32% saying paying bills on time remains the biggest challenge for their business. In fact, only 1% say bills are paid on time, 100% of the time and only 8% are paid on time, 50% of the time. With an average of 23,000 invoices processed per year, it can really add up!
The lack of technology could be the cause of this slow pace. Nearly a quarter of respondents (24%) say their software is inflexible and difficult to adapt to unique business needs. 1 in 5 (22%) say their software is very outdated and requires a lot of manual actions.
Finance teams facing churn
Attracting and retaining talent has become a priority for corporate boards as the great resignation sweeps the world. But according to the data, finance professionals are at particular risk of leakage. 24% say their finance department is so busy they’re worried their colleagues are about to leave. To make matters worse, one in five (19%) feel their work is dominated by monotonous and boring tasks that are demotivating. For teams that use automated tools in payments, less than half (44%) believe they have been properly trained. Around the world, the average tenure on the finance team is just 34 months.
Kevin PermenterDirector of Research, Financial Applications at IDC, comments, “Over the past three to five years, we have seen finance and procurement teams playing ‘mole tricks’ when reacting to global economic fluctuations and the Unsurprisingly, they are struggling to keep up with ever-changing customer expectations, increasing risks and vulnerabilities, and challenges caused by global supply chain issues. It’s a tough environment, even for the strongest teams.
Medius, in partnership with Censuswide, surveyed 2,750 senior finance executives across major markets in North America, Europe and Asia. To ensure that small operations do not skew the data, businesses with less than 50 employees and those processing less than 5,000 annual invoices were excluded. The average number of invoices processed by the sample each year exceeds 22,000.
About Middle Finger
Medius connects invoice capture, processing, and payment to replace the worries and questions of managing accounts payable with calm and confidence. Medius goes way beyond basic automation by using artificial intelligence to do most of the work – so invoices are confirmed, coded and paid; AP teams can go home and rest quietly; and businesses can rely on their budgets and forecasts. Visit medius.com to learn more.
For more information please contact:
Laurel CaseFight or Flight for Medius
[email protected] | +1 315 663 6780
[email protected] | +44 330 133 0985
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SOURCE Middle finger