Often, you might wonder about payment automation. It is an integrated solution enabling organizations to make wire payments, virtual cards, ACH, and checks. Rest assured it has taken automation further by issuing payment to the suppliers after receiving and processing the invoices.
Benefits of payment automation
Let us delve into the benefits offered by automated payment services.
Foremost, it would help remove manual activities from the AP process. The result would be the ease of completing the entire cycle. It would also assist in creating an improved link between your payments solution and the procure-to-pay system. As a result, it would enhance the specific automation levels offering the below-mentioned benefits.
- Enhanced supplier satisfaction
Automated payment services would offer relatively shorter payment cycles. It means the suppliers would be paid quickly thereby reducing the outstanding of their day’s sales. It would help develop relations with the supplier base.
- Added discounts
It would be worth mentioning that when invoices are routed manually, it hampers early-payment discounts. However, with automated payment services at your behest, the processing cycle could be compressed easily. It would enable various organizations to gather more discounts and optimize the available working capital.
- Quick cycling duration
Time is money for AP teams. When a process is more efficient and automated, it would mean more return on the investment for the company. As a result, the suppliers would be paid quickly. Rest assured it would result in cost savings from capturing more premature payment discounts and processing the invoice quickly.
- Reduced duplicate payments and errors
Time is the essence with AP, but errors tend to consume valuable time, wear down relationships with the supplier, and could surface several duplicate payments. However, the best-automated payment services could leverage automation. It would help reduce the overall percentage of overpayments and duplicate payments.
- Enhanced visibility
When you introduce automated payment services and electronic payments, you increase your chances of capturing more financial data. It would help process improvement along with supporting advanced analytics. Rest assured emphasis has been on payments to assist finance executives to understand and predict the ease of cash flow. It would also help improve strategic tools for optimizing cash positions.
- Prevent frauds
Those looking forward to attempting or commit fraud would use checks as the most frequent payment method. Most respondents have received a fake invoice or have been played fraud in numerous ways. However, with the regularity of automated payment services, there are higher chances of sensitive data being secured. It would also strengthen the importance of securing sensitive data.
- Supplier inquiries reduced
Much valuable time has been wasted with AP responding to supplier inquiries for verifying payment and invoice status. By automating the payment process, the suppliers would be given visibility into transaction statutes by the organizations. It would help improve the relationship with the suppliers and reduce the time spent on supplier inquiries.
- Cost-effective transactions
Paper checks have been expensive than electronic payments. Even the average cost to process and pay an invoice is relatively higher. The automated payment system caters to you an opportunity for various businesses to move to electronic payments and automate their AP.