For any company, compliance with industry standards is of the utmost importance. If a business doesn't have the right controls in place, it's possible that errors or mismanagement issues will spiral out of control and result in violations, ultimately taking a toll on the firm's productivity, reputation and more. No organization can afford the negative effects that come with non-compliance, and this is one reason the use of procurement cards (P-cards) is becoming more common.
According to American Express, there are far more benefits to utilizing P-cards than saving on processing costs and other advantages often associated with this payment method. The source noted that in one study by Accenture, researchers revealed that P-card use can improve compliance by approximately 33 percent. Another study by the Aberdeen Group found that P-card users valued the technology because of how it simplified the process of complying with Sarbanes-Oxley emma watson pokies regulations.
Sun National Bank explained that P-cards bolster regulatory compliance by making it simpler for organizations to accurately track expenses. Using electronic means of payment not only allows transactions to be automatically recorded, but it also helps enhance visibility, which allows leaders to react more quickly to any instances of inappropriate spending. Additionally, better compliance stems from being able to make more secure transactions over online channels.
Running a business well requires attention to financial management methods. In addition to taking precautions such as frequently using AP audits, decision-makers should consider the advantages of implementing a P-card system. If they do put such an initiative in place, they may be able to make maintaining compliance an easier and more intuitive process.
To learn more, join Tech Insight at its "The Hidden Value of P-Card and A/P Analysis" event in Chicago on August 14.