Reasons Why Your Business Should Automate Payments Pt. 1
In the business world, every little advantage helps. One surefire way to improve efficiencies within your business is by switching to automated payments.
What is payment automation?
Payment automation is an integrated solution that allows businesses to make computerized bill payments directly through an electronic payment system.
Why is payment automation beneficial?
Automated accounts payable solutions streamline processes, remove human error, cut down on costs, speed up invoice processing, and more:
Automated Payments Save Money
According to Ardent Partners “The State of B2B Payments 2017,” 51 percent of organizations rate cost savings as the top benefit seen from electronic payments. A study by Spencer Commerce concluded that automated payments offer cost savings of 90 percent in accounts payable processing over manual processing. Savings on storage costs over 10 years amount to 67 percent. Put simply, cheques and manual payment processing are expensive.
Automated Payments Save Time
When it comes to accounts payable, time IS money. Automated payments allow companies to process payments instantly and automatically. No more misplaced invoices, no more time wasted hunting down payments, and no more wondering when a payment will be approved. Faster approval time offers your company greater flexibility and improved cash flow. Automated, electronic payments guarantee that orders and invoices get to where they need to be, and ensures that your suppliers and contractors can be paid faster.
Automated Payments Reduce Fraud
According to JP Morgan, cheque fraud is the most common type of payment fraud. In 2017, 75 percent of the companies hit by payment fraud fell victim to cheque fraud. When you add up all the fraud management fees and reconciliations, the cost of cheque fraud alone is worth making the switch to electronic payments. Accounts payable fraud detection is easy with an automated system. Fraud via ACH is only at 22 percent.
Automated Payments Reduce Errors & Duplicated Payments
If something is done manually, there is always the possibility of an error. With hundreds (or thousands of invoices), mistakes can and do happen. One simple accounting error can waste time, sour business relationships, and lead to multiple erroneous payments. Automated payment systems can easily recognize and fix any errors or inconsistencies. According to Ardent Partners ePayables, payments automation can cut duplicate and overpayments by 292 percent! “Costly errors” are reduced by nearly 40 percent, according to Spencer Commerce. With automated accounts payable processes, your business will never again mistakenly pay an invoice twice or overpay a supplier.
Make The Switch Today
Despite the clear advantages of using software and online tools to automate payments, many accounts payable departments continue to use manual data entry and invoice processing to handle their payments. It’s time to change that. Make the switch today.
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