Like any relationship, the one between an association’s board members and its community association management company is built on trust. It’s the primary reason this relationship exists in the first place, as a board of directors taps a management company to help execute the responsibilities it has to its residents.
So, while it may sound surprising to some, it’s easy to see that the way a management company pays its bills can significantly impact the level of trust and overall quality of the relationship—for better or worse.
Fortunately, there are new technologies that optimize accounts payable (AP) to ensure management companies’ bill pay processes are safe and secure. Here’s how.
PROVIDES VISIBILITY AND TRANSPARENCY
With management companies deeply involved in daily operations, board members rely on them to share financial information.
Optimizing AP facilitates transparency, as 24/7 access to invoice and payment records and advanced reporting functions allow managers to provide board members complete visibility without all of the back and forth. Not only does avoiding deep dives through a sea of filing cabinets free up valuable time for managers, it arms the board with real-time data for better decision-making, leading to increased productivity for everyone involved.
ESTABLISHES SECURITY MEASURES
Paper-based AP is vulnerable to fraud and unauthorized access, especially with invoices and checks chock-full of important account information. Financial loss and a tarnished board reputation would certainly put a strain on this relationship.
Streamlining AP mitigates fraud risk by implementing heightened security measures and limiting access to approved personnel. Doing so provides peace of mind for payers and payees alike.
MAINTAINS POSITIVE VENDOR RELATIONSHIPS
Sustaining healthy third-party relationships is a top priority for association boards. After all, keeping business partners happy ensures the organization is operating to its full potential.
With increased visibility and a more organized workflow, processing invoices is quick and painless, which promotes positive vendor relationships. When vendors are paid on time, every time, they’re happy to take on more work.
It all adds up to daily processes that management companies can consistently count on and board members can trust. Doesn’t that sound like the kind of foundation we’d all like to build upon?
To learn how your company can build trust with boards through an optimized AP process, visit avidxchange.com/strongroom.
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