The Benefits of Electronic Payments
Accounts payable has traditionally been a manual process. You manually print checks. You manually sign checks. Then you stuff and mail them – all manually. That’s a lot of hands-on effort. And if you have multiple checking accounts and check forms, the effort multiplies.
In a perfect world, you might never have to see, sign, stuff or mail another check again. Does such a wondrous place exist? It does when you use an integrated software system. Even if you’re not ready to go completely paperless with your accounts payable disbursements system, you can still take advantage of different levels of automated functionality to save your company time and money.
Level 1: Automated MICR Print Functionality
Companies with multiple checking accounts and separate check forms can automate their processes with the MICR printing solution. Blank check stock is loaded into the printer and all bank routing numbers and account information will be automatically printed as checks are processed. Scanned signatures can also be added automatically. While printing and stuffing still occurs at this level, there is no need to keep changing stock from print run to print run or to have checks manually signed.
Level 2: Online Bill Pay
When you’re ready for a formal, online accounts payable solution, a more robust software system offers online bill payment functionality that connects bill pay service to accounts payable. Simply build a check run, submit it and the automated bill pay service takes care of printing and mailing the checks. No need to access individual vendor sites to pay invoices.
Level 3: ACH Vendor Payments
Ready to go completely paper free? Then it’s time for ACH vendor payments, the highest level of automation in electronic payments. A vendor’s routing and bank account numbers are stored within their vendor record. Like the online bill pay option, a check run is built. But instead of choosing the options to either print checks or pay via online bill pay, users choose to submit via ACH Wire Transfer. This option still provides a strong approval process before the wire is submitted and processed, but funds are transferred directly from a company’s checking account to a vendor’s checking account. Checks are avoided altogether with this convenient, secure, paperless alternative.
How will automation benefit your company?
- By saving you time. Automation means less manual effort, avoiding lost checks in the mail and reducing manual errors.
- By improving vendor relationships. They get their money more quickly, which would make anyone happy.
- By saving you money. Saving time, shortening processes and reducing errors means money back in your pocket.
Learn more about how automation can benefit your company.