It's Accounts Payable Appreciation Week and we thought we should share some of the ways that this unsung hero of every business can really impact the company and it's overall performance.
Of course, we should clarify that we are talking about an Accounts Payable Department that is automated and issuing electronic payments. Electronic Accounts Payable can provide advantages such as time-savings, controlled expenses, added flexibility and greater visibility to cash-flow. But there are greater advantages that this department can make on your business that you may not have considered:
1. Payments Can Enhance Your Vendor Relations
Maintaining good vendor/ supplier relationships can only have a positive outcome. The efficiency of your accounts payable process can contribute to the strength of these relationships. Reducing the number of phone calls from vendors regarding the payment status can be achieved when automating payments. By using electronic payments, your vendor will always know when a payment has been processed and, in turn, consider you a preferred customer.
2. Payments Can Improve Your Employee Relations
One of the best things you can do to instill loyalty and maintain a happy and productive workplace in accounts payable is to empower employees. Working together as a team and upgrading from check issuance to electronic disbursements frees the A/P employees from administrative paper-pushing. Keep your staff feeling satisfied with their jobs by empowering them for more important tasks instead of worrying about tracking and managing physical inventory and folding and stuffing payments.
3. Payments Can Mitigate Your Fraud Risk
There are several risks when it comes to business-to-business payments. They are check fraud, unauthorized ACH debits, employee fraud, credit card fraud and email scams. Payment security, which begins in the Accounts Payable Department, requires that standardized processes that demand separation of duties for issuing payments along with other data security protocols (especially around vendor bank account and routing numbers). Many ERPs or accounting systems don't have levels of accounts payable access. Someone either has access or they don't. Using a payment technology with your accounting system will help ensure that the risk of fraud is reduced by ensuring appropriate security requirements.
4. Payments Can Deliver Profit to Your Bottom Line
The way payments are made can have a big impact on your business. Electronic payments can reduce labor hours of issuing payments and cut costs in supplies, materials and postage. Best of all, electronic virtual card payments, which have been around for several years and are slowly becoming more popular, can pay your business CASH-back each month. Just like reward or rebate dollars on your Purchasing Cards. These cards are designed especially for accounts payable.
Consider switching to electronic payments. By moving your business from paper check printing to electronic payments, you will experience many benefits including improved vendor relations, more satisfied and productive employees, a much lower costs per transaction, and even an opportunity for monthly cash rebates — creating a new PROFIT stream for your company.
Payments Can Change Everything. #paymentscanchangeeverything
Listed by CFO Tech as one of the Top 10 Accounts Payable Solution Providers 2018 and 2019 and by CIO Review as part of the 20 Most Promising Corporate Finance Tech companies for 2017, OnPay Solutions streamlines processes for accounts payable by automating invoice processing and payments.