Payment automation reduces errors and delays

Payment delays and errors common in B2B transactions come from many sources, but one of the biggest contributors is the reliance on manual payment processes such as checks.

Errors can happen anytime when it comes to paper checks, from sending to processing to receiving. According to AP Automation Tracker, a PYMNTS and Beans collaboration.

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The record number of employees now working from home further complicates the use of paper checks.

All of this can have massive downstream consequences that damage companies’ relationships with their vendors and suppliers. They can also cause companies to lose benefits, such as discounts or fast delivery of products and services, and they often even lead suppliers to refuse to do business with a company again.

Reduce delays and minimize errors

Digitizing payments can go a long way to reducing delays and minimizing errors by delegating day-to-day processes such as accounts payable, invoice processing, and record keeping to artificial intelligence (AI)-based solutions.

This could drastically reduce the capacity for human error and speed up complex calculations that tend to be tedious and time-consuming for human accountants.

Automating these processes means that recurring payments can be configured to move from invoice to payment with purchase order approvals already in place.

“You should be able to follow the invoice through to payment and have someone at the end to make sure that ‘yes, all the dots line up,'” Beanworks CEO Catherine Dahl says PYMNTS in an interview. “There are day-to-day dashboards where the accounting team manages the process, but they’re not Do the process.”

Read more: AI-powered payment platforms put paper processes under scrutiny

Moving payments from checks to automated digital transactions can bring a host of improvements across a company’s operations, including increased efficiency, better working capital management, and cost reductions.

Reap the benefits

In addition to improving supplier relationships, digitization can improve customer relationships. For example, digitizing payments can make a company’s payment operations more transparent, allowing it to implement online portals that help customers view their payment journeys more holistically.

Customer relationships can become more collaborative through this digitization, fostering a better sense of loyalty and potentially leading to better conversion rates.

Payments are the lifeblood of any business, especially those that work with vendors to transact goods and services.

For these companies, B2B payments are such a pervasive daily reality that businesses can reap countless benefits by digitizing these payments.

Chief Financial Officers (CFOs) are looking for any solution that can reduce payment delays and errors, and they see automated and digitized payment systems as extremely promising.

Additionally, automating and digitizing payments and the processes around them could allow accounting staff to focus more on overall operations, improving the business as a whole.

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NEW PYMNTS DATA: THE FUTURE OF BUSINESS SUPPLIER INNOVATION STUDY – APRIL 2022

Plastiq - The Future Of Business Payables Innovation: How New B2B Payment Options Can Transform The SMB Back Office - April 2022 - Find out how all-in-one payment solutions can help businesses streamline B2B transactions and eliminate transaction friction. AP and AR management

On: While more than half of SMBs believe an all-in-one payment platform can save them time and improve cash flow visibility, 56% believe the solution could be difficult to integrate with AP systems and existing ARs. The Future Of Business Payables innovation report, a collaboration between PYMNTS and Plastiq, surveyed 500 SMBs with revenues between $500,000 and $100 million to explore how all-in-one solutions can exceed customer expectations. SMEs and help sustain their activities.

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