Salim Khalife founded Paramount Workplace, now a subsidiary of PairSoft. He currently uses his decades of SaaS experience in the consulting space and is based out of Michigan with his family.View all posts by Salim Khalife
Salim Khalife • October 6, 2022
If your business is still handling payments the old-fashioned way, you’re behind the times. Payment automation is a growing trend in business, and for a good reason — it offers a ton of benefits that can help your bottom line.
In this blog post, we’ll discuss some of the key benefits of automating your payments process. We’ll also dispel some myths about payment automation that may keep you from making the switch. Read on to learn more about why payment automation should be at the top of your list.
Payment automation is the streamlining of an organization’s accounts payable processes (AP process) through the use of automation solutions. These solutions include automatic data capture and workflow management for electronic payments.
It also refers to the process of using accounting software to streamline your payments. Rather than manually inputting data into your accounting system, the software can automatically pull the information from your bank account or credit card statement. This can save you a significant amount of time and effort, as well as reduce the risk of human error.
AP automation is often used with virtual cards, a type of electronic payment that can be used to make instant, secure payments. Virtual cards are often used for things like employee expenses or travel expenses.
Automating accounts payable allows organizations to improve accuracy and efficiency while impacting cost savings. The first step in automating payments is to extract data from invoices and other forms of financial documentation.
This data is then processed and routed through a series of approvals converted into electronic payment instructions. These instructions are sent to the appropriate financial institution for processing, and the funds are transferred to the supplier.
The entire process can be managed electronically, eliminating human error from manual processes like paper invoices and paper checks. Organizations of all sizes can benefit from payment automation. Automating AP can save significant time and money for businesses with a large volume of invoice payments.
One common type of payment automation is ACH (Automated Clearing House) payments. With ACH payments, businesses can automatically withdraw funds from customers’ bank accounts regularly. This can be used for things like recurring billing or subscription payments.
ACH payments are typically very reliable and much cheaper than other types of payments, such as credit cards.
For smaller businesses, payment automation can improve accuracy and efficiency while freeing staff to focus on other tasks. In any case, automating AP is a smart way to streamline workflow and improve business operations.
As businesses increasingly look for ways to streamline their operations, payment automation has become a popular solution. Payment automation can offer several benefits, including faster payment processing, reduced costs, better customer experience, fraud protection, etc.
One of the most important benefits of automating your payments is improved efficiency. Manual payment processing is time-consuming and error-prone, leading to delays in payments and invoicing inaccuracies. Automating payments can help businesses eliminate these problems, freeing up valuable time and resources.
Payment automation streamlines accounting procedures and improves accuracy by reducing or eliminating the need for manual data entry. By automating payments, businesses can also free up staff to focus on other tasks and reduce the risk of errors. It can often be processed faster than manual payments, providing a smoother experience for customers.
Automating payments can also help businesses reduce costs. Manual payment processing is often labor-intensive, requiring dedicated staff to handle invoicing, payments, and collections. Low costs can help businesses take advantage of early payment discounts and avoid late payment penalties, helping you achieve significant savings.
Similarly, automating payments can help businesses optimize cash flow management and forecasting. You can receive payments faster and more accurately predict when funds will be available, helping you manage your cash flow more effectively and avoid costly overdraft fees.
It can provide a better customer experience, too. Automated payment systems can help make it easier for customers to purchase orders and track their order status. Additionally, automated systems can often provide customers with more flexible payment options, such as setting up recurring payments or making one-time payments online or via mobile devices.
Finally, payment automation can also offer fraud protection benefits. Automated systems can help your organization verify customer information and prevent unauthorized transactions. Many payment processors offer fraud monitoring services that can flag potentially fraudulent activity and help businesses take steps to prevent losses.
When it comes to the automation of payments, there are a few factors that organizations should keep in mind to find a solution that meets all of their requirements. The first consideration is how well the software works with existing infrastructure.
For example, many businesses use an ERP solution to manage their finances. In this case, finding a payment automation solution that integrates seamlessly with the ERP software is important. This will help to reduce errors and improve efficiency.
Another thing to consider is the level of automation the software offers. Some solutions simply automate invoice processing and payment tasks, while others offer more comprehensive AP automation solutions, including recurring payments and fraud detection.
Finally, businesses should also consider the cost of the payment automation solution. While many solutions have a free trial period, businesses will eventually need to pay for the software monthly or annually.
There are many good reasons to upgrade to a payment automation system. If you’re still writing paper checks or making slow electronic payments, you’re missing out on the many benefits of this type of system. With payment automation, you can enjoy faster, more efficient payment processing and increased accuracy and control over your cash management. In addition, payment automation can help you save money on interest and late payments and improve your cash flow.
If you’re using an outdated payment system, now is the time to upgrade to a newer, more efficient one. PairSoft offers a complete accounts payable / B2B payments suite that can help you take advantage of all the benefits of payment automation. Get a demo today to learn more.