While investment in new business processes and technology can appear daunting, a modest commitment upfront can lead to significant long-term efficiencies and cost savings for your business. We understand businesses need to streamline and be more efficient with resources, especially given the impacts of the pandemic, including recruiting challenges and staffing constraints. One way to become more efficient is by exploring alternatives to manual payment processes that exist today.
Traditional payment methods — weighing the risks
Check writing is arguably the most manual payment process businesses use. Although checks have long been used as a payment method, the high demand on resources and costs to facilitate their processing, not to mention the increase in fraud and the delay in mail delivery, are giving companies compelling reasons to implement alternative payment options. As instances of fraud rise, fraudsters unfortunately are still looking to checks as one of the easiest ways to commit fraud.
In addition to the fraud loss, in October of 2021, the United States Postal Service released a statement that all out-of-town mail will take an average of up to five days for delivery. This may have a large supply chain impact for companies sourcing material from other regions, creating significant time delays in receiving payments. In the long run, optimizing payments can save your company time and money, as well as improve supplier relationships.
Optimizing your payment process
By leveraging the latest in payment processing technology through commercial card and virtual card payments, your business will benefit now and in the future. Through cardless payment accounts, your organization can reduce paper check processing costs and increase accounts payable efficiency — all while retaining your existing payables processes and systems.
Benefits of converting to virtual card payments
- Enhance accounts payable processing. A virtual card rebate may exceed the cost of an accounts payable automation solution, putting money back in your company’s budget to invest in other initiatives. You can earn cash rebates while paying your vendors or suppliers.
- Better insight into cash flow. Enhanced reporting allows your business to quickly see the full picture of your current cash flow instead of waiting for checks to clear.
- More efficient remittance to your vendors. Vendors get one email that includes both payment and remittance information. Virtual cards provide vendors with immediate payment and certainty of receipt.
- Provides added fraud protection. Unique, randomly generated numbers are designated for one-time use and for a specific payment amount.
- Increase working capital. Payments can be executed immediately, providing your business the ability to pay faster and accounts payable teams the ability to hold on to larger payments longer.
Contact us to discuss your company’s unique needs. We’ll help you identify the right mix of payment options for you, your organization and your vendors, and discuss the optimal payment solutions for your cash flow.
Company: Johnson Financial Group
Innovation: Automating payment processing
Website: JohnsonFinancialGroup.com
