When your organization is mainly depending on check payments, believe it or not, you are actually paying more than the exact amount. The electronic mode of payments can eliminate the hard costs which involves paperwork, time spent to stuff those payments inside envelopes, postage and more, getting rid of these processes has benefitted the organizations that have replaced the paper check method for B2B payments by embracing new technology.
Here, we present few benefits for businesses that adapt to electronic payments.
1. Leverage an Automated Accounts Payable Software
The best way to optimize the entire process of moving from B2B check payments to an electronic mode of payment is by accounts payable process automation. The process includes automating vendor invoice capturing, receiving payment authorization from management, securing the invoices, and executing payments. After all these are taken care of properly, it becomes easier for you to match each and every invoice in a payment run to the most beneficial electronic payment technique in just a few clicks.
2. Enhance Working Capital Benefits and the Process of Cash Flow
It has been observed that electronic payments have enhanced cash flow. The settlement period gets accelerated when compared to paper checks which are sent through emails for organizations making ACH transfers. You can wait till the last date of payment before returning the finance owed to suppliers by leveraging corporate credit cards. It is a unique way to enhance capital as most business credit cards include cash back rebates.
Corporate credit cards for paying supplier invoices can offer an important revenue stream. These processes improve the amount of cash on hand and on capital expenses. It helps your organization to use corporate credit card for the maximum amount of payments as much as possible.
3. Minimize the Risk of Fraudulent Activities and Eradicate Hard Costs
Along with enhancing short term cash flow, leveraging business credit cards for paying supplier invoices helps in eradicating hard costs made by B2B check payments. Such expenses include envelopes to posting checks, and late payments along with the time taken to process paper check payments.
Paper check payments are the biggest target for any kind of fraudulent activities when compared to electronic payments. According to a survey by the Association for Finance Professionals, almost 75% of finance leaders reported that their company’s check payments were exposed to fraudulent activities. Invoice processing electronically can cost 95% less than the paper checks.
The Bottom Line
Replacing the paper check payments with an automated accounts payable solution will enable organizations to cut off a large amount of unnecessary costs, reduce fraudulent activities, and help to maintain a suitable cash flow for the business.