Smart, secure and streamlined payments convert your AP department from a cost center to a revenue generator.
Over the past several weeks, we’ve all seen an abundance of stories on the declining economy. Although the current news does not seem promising, as businesses reboot they will need to determine what key elements will add value to the business and meet the immediate and future needs of their organization. An obvious answer is automation.
Automation is part of our everyday life and is used more often than we think as consumers and in business. How many times have you felt, “I do this same task over and over, can’t this be automated?” Well, you’re not alone. Repetitive tasks, for the most part, can be completed faster, and in many cases, more securely and accurately without human touch. Automation saves time and allows resources to focus on more important, value-added activities.
In addition to increasing efficiency and productivity, automation reduces costs, leading to increased profit margins for businesses of all sizes. One department that has repetitive tasks is Accounts Payable (AP).
In a recent study by PricewaterhouseCoopers, it was stated that manual tasks are some of the biggest contributors to high AP processing time and costs.
That is work that companies would like to reduce, or better yet — completely eliminate. With AP automation, you can easily change these statistics and enable your business to substantially increase financial returns. The result is more efficient payment processing across supply chain activities.
If automation is the first step in creating a more efficient workflow, then virtual card payments naturally come next. A virtual card is a unique 16-digit computer-generated number used to settle a specific vendor payment transaction issued for a specific dollar amount. Designed as a more secure alternative to ACH and check payments, virtual cards are essentially “card-less” credit card payments. Virtual cards can be processed by anyone who accepts traditional credit card payments, which typically includes the majority of your suppliers.
Three things need to be in place:
Financial Technology companies (FinTechs) can help businesses incorporate virtual cards into their AP process. Some tips in finding the right partner:
Finally, look for a FinTech partner that works with large brands in multiple industries.
A great partner will take on the heavy lifting, from streamlining implementations to vendor enrollment and enablement. Their goals should align with yours:
You may be thinking, this sounds too good to be true, what’s the catch?
There really isn’t one. Payment automation is simple, fast, and cost-effective. If you want to maintain a competitive advantage, automate your Accounts Payable and start with payments. One thing is certain: If it can be automated, it will be — stay ahead of the curve and start today.