The importance of an accurate Vendor Master File

A healthy VMF, or supplier database, is critical because the data is used to generate electronic payments and is also used in a huge range of business activities. It’s fundamental to everything from business-to-business transactions to tax and GTS reporting. And it touches management reports, compliance, purchasing, sales, contracts, sourcing, performance and risk management. So it’s vital to keep your VMF clean – and to protect it with sensible data management processes and policy. Inaccurate VMFs are the norm keeping a VMF up to date manually is a time -and labour-intensive task, and many businesses fall short. A recent KPMG study discovered that 20% of vendor details may be inaccurate in a typical VMF, and eftsure’s own analysis reveals the number may be as high as 25%.

For small to medium enterprises, a cyberattack can be ruinous, putting them out of business for good. The good news? A well-maintained and automated VMF can be your secret weapon in combatting fraud and error. Used wisely, it can improve governance and compliance reporting and protect your business from risk.