It’s the early 21st century, and it’s time that the payments & accounts receivable (AR) industry steps into the modern era. The vendor payment processes associated with accounts payable and accounts receivable are outdated, paper-based, manual, and inefficient. Fortunately, many businesses are now implementing accounts payable automation (AP Automation), which streamlines their invoicing processes. Thanks to AP Automation, businesses can eliminate their reliance on paper checks and pay their vendors electronically.
- 3 ways that these game-changing tools are transforming the payments & AR industry:
- Easy vendor audits
- More productivity equals growth-oriented culture within organization
- Vendor relationship enhancement
- Minimization of paper checks
- Cash Flow optimization
- Automated payroll
- Karbon Payout is an automated payments platform that lets you streamline all your payments in one single Dashboard. Be it bulk payment, vendor payment, payroll.
Most accounts payable departments cannot make larger payments on invoices received from vendors on time, as they are dependent on manual and semi-automated invoice processes. If your company is still processing invoices manually, this increased liability could become a stressor, which will put your accounts payable department out of commission, potentially slowing the process of reaching the milestones that your business is otherwise fully prepared to achieve. A company can process invoices faster when the customer sets up an automated workflow to track vendor invoices.
3 ways that these game-changing tools are transforming the payments & AR industry:
Easy vendor audits
If your company has been using manual or semi automated processes, you surely understand the pain of reconciling all the vendor invoices, amounts paid, taxes due etc. This becomes a mountainous task to manually go through each invoice and keep track. This makes a typical vendor audit process very long and complex.
The biggest change you are likely to notice once you switch to AP automation is that the vendor audit process has become much easier as compared to before. If you are able to accelerate invoice processes using accounting payable automation, you will see some immediate improvements.
If you are starting up and looking to invest in a payment solution, you need to go for AP automated products without a doubt. Your startup deserves an AP automation software that is easy to use so your business can focus on growing.
More productivity equals growth-oriented culture within organization
Benefits of implementing AP automation is not only limited to vendors. By configuring automation software to handle areas where productivity increases the most efficiently, you can build a growth-oriented culture using software specifically tailored for the way account payable processes operate.
Most organizations have transformed parts of their accounts payable (AP) process by automating parts of the process or specific types of payments. Using means AP departments should be able to effectively handle every payment type using a built-in solution for payments or AP automation.
Vendor relationship enhancement
Digital payments strategies and AP systems that prioritize electronic payments and process automation can help enhance your relationships with vendors, making payments faster and improving visibility and reconciliation.
One of the biggest pain points of vendors working with organizations is that they don’t get paid on time. Implementing a strong AP automation system will help the organization quickly gain popularity among the top vendors in the niche or industry. This means that your organization will not have to look for vendors. All you need to do is let them come to you and you get to have a pick of the litter.
The number of benefits of implementing an efficient AP automation system are beyond just the three listed above –
Minimization of paper checks
Implementing AP Automation is cheaper than sending checks through snail mail. Electronic payments also help vendors save money on postage and other expenses. Reduction of paper usage within the organization is also better for the environment as a whole.
Finally, because electronic payments take place instantly and are processed in real-time, businesses don’t need to worry about their accounts payable department being overwhelmed by paper checks from customers or vendors—and neither does anyone else!
Cash Flow optimization
Automating the payments process allows the company to capture more opportunities to benefit from advance payments discounts. AP Payable systems can monitor those advance payments allowances for optimizing cash flow. If automation helps you avoid late-payment penalties, then surely you will be able to put money to work for you, taking advantage of these early-payment discounts. Instead of paying vendors with a paper check, automation allows you to electronically process and approve payments wherever you are.
Making payments within the organization also gets simplified by implementing AP automation. Getting paid on time is not only the pain point of your vendors, but also the pain point of the employees working for you.
If you want to retain your talented employees, you need to ensure that you pay them on time so that they are incentivized to work for you. Crediting employee salaries on the promised date builds a sense of trust within the employees and they are more likely to stay with an organization that pays them on time.
You may be wondering, “Could this really work for my business?”
The answer is yes! Many businesses are implementing AP automation, which saves them money and time.
Karbon Payout is an automated payments platform that lets you streamline all your payments in one single Dashboard. Be it bulk payment, vendor payment, payroll.
Our motto is simple – One dashboard for all your payments.
Our customers love us because our product comes with power-packed features that never fail a business owner’s expectations –
- Smooth vendor payouts – Our Payout platform is built to serve many functions – vendor payment being one of the primary. You can automate your vendor payments and be free from the hassle of worrying about sending payments on time.
- User-friendly interface – This allows our customers to spend less time making the payments and more time on growing their business. This is what makes us an ideal tool for startups & SMEs.
- No payment errors – Because all payment processes are automated, there is little to no scope for error. This will save a lot of money for the organization in terms of failed payment fee. Want to know more about all the fees that banks charge you? Read our article on all the hidden charges banks can charge you for!
- High stability payment system – To ensure there are no errors during payment processing, our intelligent system selects the best available payment channel out of NEFT, RTGS, IMPS to successfully process your payment and reduce chances of failure.
- Consolidated beneficiary addition & management – Send payout links to your vendors in a single click and let them add their beneficiary details in your system. This reduces the hassle of having to manually collect beneficiary details of all the vendors.
Growth VP @ Karbon