Most accountants prefer cloud-based paperless payments - report

The study shows that 73% of accounting practitioners are still using paper-based payment methods when handling client accounts payable. This predominate use of paper cheques worries many accounting professionals, with 45% expressing concern over the fraud potential posed by paper-based payments.

The survey, conducted in May 2015 and sponsored by Bill.com, includes responses from 540 accounting and bookkeeping professionals handling bill payments from solo practitioners to companies with over 31 employees. Respondents included members of the CPA Academy, Insightful Accountant (formerly Intuitive Accountant), schoolofbookkeeping.com and The Sleeter Group.

Accountants and bookkeepers accept the importance of paperless bill payment, with 52% of respondents saying it would make them more efficient and 20% responding that it would make them more organized. These results held true for companies of all sizes, with firms serving 50 or more bookkeeping clients voicing the strongest support.

While respondents embrace the idea of going paperless, paper cheques still have an entrenched presence in the B2B payment process. The survey shows that respondents use multiple forms of electronic payment for client payments such as ACH, online banking and cloud-based services, but 73% of respondents use computer-printed cheques. Thirty-seven percent still rely on handwritten checks to pay their clients’ bills.

When asked why their clients do not pay all bills electronically or via the cloud, accounting professionals and bookkeepers commented that clients show an aversion to technology, a status quo attitude or concerns about costs.

The survey points out that accountants and bookkeeping professionals clearly see a connection between paper-based payments and fraud, and it is concerning. Forty-five percent of the respondents said that paper related to accounts payable, such as cheques, invoices and contracts, creates a serious risk. More shockingly, 30% said that they have had a client victimized by fraud related to the bill payment process.

Survey respondents indicated that while cheques are still part of the B2B bill payment process, they are definitely turning to the cloud. Forty-one percent intend to adopt a cloud-based bill pay solution in the next six months.

When asked what technology features would be most valuable in a cloud-based bill pay solution, the responses show a preference for features that support efficiency and paperless operations.

Almost 100% of the respondents selected the ability to automatically sync payment transactions with accounting software as an important feature, and the need for an automatic audit trail ranked high as well. This illustrates the efficiency that cloud-based bill pay can contribute to practices.

In support of paperless operations, 91% said that online document management ranked as an important feature for cloud-based bill pay solutions, as well as automated payment approval workflows and paying bills online. More than 80% supported the need to view, approve and pay bills via mobile devices.