We all know the drill.
Try a bulk vendor payment. See it fail or get frozen in time.
Finally, end up going to the bank and wait in long never ending queues to find out about the frozen payment.
To top it all, you pay extra money as bank fees, while being treated that way for all those transactions you struggle to make.
This is where Vendor Payment Reconciliation becomes a necessity.
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It is defined as the reconciliation of a vendor’s account to match the statement provided by the vendor. The vendor statements require matching vendor invoices with the company’s system for proper reconciliation.
Vendor reconciliation ensures no mismatch between what the vendor has charged for the supplies, inventory and the services received by the firm.
It helps to detect problems between vendors and the company’s accounts. It acts as a layer of verification post the vendor payments process.
Vendor statements are received by the firm usually in PDF or Excel format. If it is offline, then vendors send their statements via post.
Startups and SMEs need to understand, that if their transaction values are not huge and also recurring, choosing a big bank for bulk vendor payments can cost them more than what they gain.
If there’s a weak vendor payment reconciliation system in place, it will make it impossible to track this cash burn.
Moreover, a vendor needs a way to crosscheck his payments to keep the trust factor while doing business with an enterprise. Vendor payment reconciliation can act as an added shield in the process.
Other issues that call for Vendor payment reconciliation through automation:-
Cash flow in a business can change in the blink of an eye, and this is why vendor payment reconciliation becomes important to keep it steady. Additionally, if your business has adequate funds, it is best to make payments in bulk followed immediately by the reconciliation process.
Most businesses face issues when it comes to vendor payment reconciliation. Manual methods don’t just involve storing records on pen and paper. It extends to manual processes to efficiently pay, process and track payments.
The added problem is most of them do not have access to an entire legal team to cut across any payment issues. Following a vendor reconciliation process will require a good legal team to back it.
It is, therefore, likely that a small business run by a single person is likely to suffer more due to a lack of staff support.
Do you need to go through a vendor payment process each time?
It is time you considered automated vendor payment portals for your vendor payment reconciliation. They enable seamless, fast bulk transactions, that work even on bank holidays.
Here’s where Karbon Payout comes into play!
What Does Karbon Charge for Bulk Payouts?
Karbon payout is free to use with no hidden fees. Thousands of companies have already moved to Karbon Payout and they are loving it.
Karbon Payout- Top Features
Move to Karbon today and dodge all hidden bank charges!
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