5 TIPS TO PROTECT YOUR CONSTRUCTION BUSINESS AGAINST FINANCIAL - - PowerPoint PPT Presentation

5 TIPS TO PROTECT YOUR CONSTRUCTION BUSINESS AGAINST FINANCIAL FRAUD

Sponsored by

Presented by Rhonda Greene

Rhonda Greene, APSC

Principal Solutions Consultant AvidXchange

MEET YOUR SPEAKER

Q&A Understanding Cybersecurity Threats & How to Mitigate Risks How to Save Time & Increase Efficiencies Current Challenges in Construction AP

Nearly half of construction professionals report there are three processes still dependent on paper based or manually created electronic files

50%

More than two out of five construction professionals (43%) say the biggest hindrance to automating business processes is that there are too many systems that do not integrate.

43%

CHALLENGES IN CONSTRUCTION

said automation technology would be extremely helpful in preparing for future business continuity needs.

45%

CONSTRUCTION CHALLENGES IN AP

• Received in a

huge variety of formats

• Invoices are not

standard across suppliers

• Non-standard

data means manual data entry to ERP

• Costly manual

process

• Prone to errors
• Invoices must be

matched to purchase orders/ contracts

• Errors add

manual reconciliation/ resolution

• Tracking down

the right approvers is time consuming

• Slow process

results in missed discounts / late payments

Intaking Invoices

• Filing cabinets

and stacks of paper

• Fragmented and

siloed systems

• Manual data

entry and increased likelihood of error

Capturing Data Matching

Approvals

Reporting

ESTIMATE THE NUMBER OF VENDOR PAYMENTS YOU MAKE IN A MONTH?

• A. LESS THAN 100
• B. 101 – 250
• C. 251 – 500
• D. 501- 999
• E. 1000+

OPERATIONAL EFFICIENCY IS COMPLEX

Implementing efficiencies into business processes Increasing revenue while managing cash flow and working capital Offloading laborious tasks Visibility and control

• ver spend

YET…

MOST B2B INVOICES AND PAYMENTS ARE STILL PAPER BASED.

$3-7

Total cost of processing a traditional check

74%

• f companies

experienced actual or attempted check fraud

We looked at this and realized, people's lives are better without the paper check.

CYBERSECURITY, FINANCIAL FRAUD & RISK MITIGATION

CYBERSECURITY

A cybersecurity threat is a malicious act that seeks to damage data, steal data, or disrupt digital life in general. Crimes include email phishing campaigns, in which malware is activated when a recipient clicks on a malicious file or link sent via email.

$3.9M

is the average total costs of a data breach

IT’S ON IS ON THE RISE

400%

Spike in cybercrime activity related to this year’s global pandemic, according to a recent study.

OCCUPATIONAL FRAUD

Occupational frauds are those in which an employee, manager, officer, or owner of an

• rganization commits fraud to the detriment of

that organization. The three major types of occupational fraud are: Corruption, Asset Misappropriation, and Fraudulent Statements.

$200K

is the average median loss the construction market experiences with occupational fraud

24 months

is the average length of time it usually takes for a company to notice occupational fraud is

• ccurring.

OCCUPATIONAL FRAUD IS RISKY BUSINESS

TO TOP 4 4 CONSTR TRUCTI TION FR FRAUD 1. Corruption: 47% 2. Financial Statement Fraud: 25% 3. Billing Fraud: 22% 4. Check and Payment Tampering: 17%

7 KEY WARNING SIGNS OF OCCUPATIONAL FRAUD

Living beyond their means Financial difficulties Unusually close association with vendor / customer Control issues, unwilling to share duties or visibility into work

42%

Irritability, suspiciousness

• r

defensiveness

26% 19% 15% 13%

HOW OFTEN DOES YOUR BUSINESS EDUCATE ON SECURITY MEASURES WITHIN YOUR ORGANIZATION?

• A. WEEKLY
• B. MONTHLY
• C. QUARTERLY
• D. ANNUALLY
• E. RARELY OR NEVER

HOW TO MITIGATE RISKS

Identify & understand your risks Define risks & impact on the process Formulate & deploy methods to mitigate risks

COMMON INEFFICIENCIES IN ACCOUNTS PAYABLE

Inconsistent & slow processing Paper-based processes Lack of storage & inability to access outside the office Poor data entry

WAYS TO STREAMLINE

Set up custom workflows

01

Set up pay controls, or triggers for high value, high dollar transactions

03

Store information securely in the cloud

02

Utilize financial technology, like AP automation software

04

REDUCED COSTS FASTER INVOICE PROCESSING ERROR REDUCTION IMPROVED STRAIGHT THROUGH PROCESSING

MORE TIME FOR STRATEGIC USE

Continuing to do today’s job with yesterday’s methods delays profitability for business tomorrow.

Online, mobile and real-time information are must haves Organizations must be ready to grow with or without extra headcount Outsourced services are becoming a common way of doing business A new era of employees want to elevate their value and refuse to “push paper” Security is paramount

Business who navigate the transition from manual to modern payment systems are poised to win

POLL QUESTION WHAT IS YOUR NEXT STEP?

• A. I’D LIKE TO SEE A CUSTOM DEMO.
• B. I WANT MORE INFORMATION ON AP AUTOMATION.
• C. I AM JUST HERE TO LEARN

22

Q&A SESSION

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To submit a question for Jim or Michele, type it into the chat.

THANK YOU FOR ATTENDING!

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