As your business grows, you may find yourself in need of an automated vendor payment management system to bill your vendors.
This can save the company a lot of time and effort as compared to processing the payments manually.
In addition, it allows your company to focus on core activities rather than managing payments-related tasks.
The problem is the many many myths surrounding these digital payment processes.
We have narrowed down the top 5 misconceptions surrounding the Vendor Payment Management System
What are they?
It Will Take Longer to Pay Vendors
The statistics in companies failing to pay on time were revealed by The Hackett Group, which showed 62 days (2 months) elapsed while suppliers were waiting for payment during 2020’s peak pandemic time, without a vendor payment system.
If there’s a business concern you’ve noticed in the recent past, it will undoubtedly be about payday. All of us are very familiar with what the real problem is- limited cash flow and salary delays – and how this is hurting many companies.
But the fact of the matter is that vendor payment systems speed up the payment process by up to 5 times compared to manual payments.
Small Business Owners Are Experiencing Delays With AP Automated Payments
The real bonus is virtual cards are easy to use and enable lightning-fast approvals. You’ll have more time to focus on growth projects, and talent search,
Vendor Payment Management Systems like Karbon Payout provide businesses with a way to connect with vendors and track payments 24/7.
It Is Not Possible to Track Your Payment Status
Platforms like Karbon Payout, offer a single consolidated dashboard. You’ll easily be able to see when a vendor’s invoice has been approved by the finance team and will receive email notification of this approval.
This means you will be able to manage your cash flow more profitably by paying your vendors on time, paying rent or investing in new products.
You Will Be Forced to Pay Your Vendor in One Mode
This is probably the biggest myth. You will have a wide array of approaches to choose from.
If you still can’t decide, then the AI-based system for auto-selecting the best payment channel will make business transactions hassle-free.
For instance, businesses using Karbon Payout as their vendor payment management system are free to act more flexibly while providing their vendors with the best possible experience.
You Will Have No Control Over Your Payment Process
Let us make one thing very clear- you can not and will not lose control.
If anything, you’re going to have better oversight of all the vendor payment processes related to invoicing and payments.
All key data about payments are stored in a single dashboard and provided to you at your convenience. You can track metrics like payment status, payment amount, date and much more.
For example, with Karbon Payout, you can be confident in the way you’re spending your money because Payout allows you to know the exact path of your cash-flow
Your Vendor Relationship Ties Will Worsen
Some businesses may be concerned that when a third party facilitates the processing of payments, it will put your vendor relationships at risk. However, the case is just the opposite!
You will not have to constantly contact your vendors to ask them for their beneficiary details. You can just send a payout link to your vendor and let them add themselves to your beneficiaries!
Instead of worrying about petty manual issues, you and your vendors can now focus on building a lasting relationship.
The Truth About Vendor Payments & AP Automation
Do not fall for the misconceptions that surround Vendor Payment Management System. What is not a myth, is the fact that AP automation portals like Karbon Payout help vendors get paid on time, get paid faster and get paid error-free.
For the business owner, it enables much wider visibility into the company’s cash flow. When using an online invoice system, it’s important to remember you will always have access to the status of your invoices and payments.
You need to be in control. Your vendors deserve to know when exactly they’ll get paid. You shouldn’t have to face a situation where your vendors are chasing you for payments.
It is time to start using a vendor management payment system.
If not now, then when?