Accounts Payable automation technology has opened several doors for companies especially when payment automation leads the way. An automated electronic payment program can offer many advantages such as time-savings, controlled expenses, user-friendly platforms, reduced risk of payment fraud, add flexibility, and peace of mind.
Here are four more ways they impact your business that you may not have considered:
1. Vendor Relations
Maintaining good vendor/ supplier relationships can only have a positive outcome. The efficiency of your accounts payable process can play a big role in these relationships. The number of phone calls regarding the payment status can be reduced by processing electronic invoices and then scheduling payments. By using electronic payments, your vendor will always know when a payment has been processed and you will become a preferred customer.
2. Employee Relations
One of the best things you can do to instill loyalty and maintain a productive workplace in accounts payable is to allow your employees to feel empowered and productive. Working together as a team and changing from check issuing to electronic disbursements frees up the A/P employees from the administrative paper pushing side of payment processing. Keep your staff feeling satisfied with their jobs by keeping them busy doing more important tasks instead of, worrying about tracking and managing physical inventory and folding and stuffing payments.
3. Fraud Risk
There are several risks when it comes to business-to-business payments such as, check fraud, unauthorized ACH debits, employee fraud, credit card fraud and email scams. Payment security which begins with the Accounts Payable Department with following standardized processes that require separation of duties for issuing payments along with other data security protocols. Migrating to a payment system that is separate from your ERP or accounting system will help ensure that the risk of fraud is reduced by ensuring appropriate security requirements.
4. Bottom Line
The way payments are made can have a big impact on the business environment. Electronic payments are gaining ground. Switching to ePayments can reduce labor hours of issuing payments cutting cost in supplies, materials and cash flow increments. Virtual card payments have been around for several years and are slowly becoming more popular, they offer companies in benefits far outweigh the perks of issuing paper checks.
After reading these four tips on how ePayments can impact your business, we hope you consider switching to electronic payments. By moving your business from paper check printing to electronic payments, you will experience many benefits including freed employee time, much lower costs per transaction, and there's even an opportunity for monthly cash rebates — creating a new revenue stream for your company.