Businesses still rely heavily on paper processes when paying their vendors. Given the technology available, this may come as a surprise. Using paper checks to pay vendors is costly, time-consuming and error-prone. And they often require headcount specifically for creating, processing and tracking them.
So, why are businesses reluctant to integrate digital solutions to combat this paper problem?
There are many reasons. Technical limitations, operational interruptions and integration complexities are commonly cited fears.
48% of surveyed businesses stated they haven’t implemented vendor payments because of the cost to do so.
A very low 10% of businesses have automated some part of the Accounts Payable (AP) process.
Vendor payment automation providers can easily address all of these concerns. In this blog, we will focus on the simplicity of setting up an automation program.
What is vendor payment automation?
Vendor payment automation is an essential piece of the AP pie. Vendors and suppliers must be paid correctly and on time, and utilizing antiquated payment methods can often impact the process.
Digitizing the process enables controllers and approvers to simply click “Approve” to send the payment out automatically to their vendors using modern methods. Including virtual card and ACH, these payment methods expedite the receipt of payment and allow for realtime tracking.
You may be thinking, I don’t have the resources to do all this.
Standing up an automated program is easier than businesses think.
How many vendors do you pay every month?
Whether one or one thousand vendors, payment automation often comes with dedicated enrollment specialists.
These teams contact every one of your vendors, so you don’t have to.
- Call or email on your behalf
- Collect and securely store their preferred payment method
The whole process often takes only a few minutes to complete.
Payment Data Changes Cause Problems
Vendors are constantly changing bank accounts which can be problematic when you try to pay them. Sending a payment to the wrong place delays receipt and can lead to costly late fees. Additionally, they can negatively impact the relationships you have with your vendors.
Vendor enrollment teams manage updating outdated payment data, too, keeping payments timely and accurate.
Intelligent Integrations
Getting vendors up and running is one thing. Streamlining the technology into your workflows without causing disruptions is another.
Established automation providers can integrate directly into your ERP or CRM of choice, and can complete any technical work in less time than you would expect. Understanding that every business has unique needs is also essential so automation programs can be customized to meet your goals.
Realize More Efficiency with REPAY
The ROIs for utilizing automated vendor payments far outweigh any technical requirements to stand a program up.
Accounting teams can save more than 38 hours a week on manual AP processes.
Partnering with a trusted payment solutions provider enables AP teams to process more invoices faster, increasing on-time payments, payment accuracy and cash flow.
REPAY’s dedicated vendor enablement team delivers a smooth transition from manual paper check payments to digital and automated payments, and we can have your program up and running in as few as three days. Over 225,000 vendors regularly trust us to manage their ongoing payments, and we have streamlined the enablement process to be as disruption-free as possible. Simplify the vendor payment experience today!