Brainy Insights’ recent report indicates that the payable automation industry will have a 12.5% CAGR between 2022 and 2030. Changing trends in technology have encouraged the growth of this industry.
So, what is payment automation? It’s an integrated solution that enables users to make efficient and accurate cheque or wire transfers.
For a successful business, it’s essential to keep your internal processes on track. This is because it encourages insightful and flexible analysis of your financial accounts. Adopting this technology will help you drive your revenue and transform your business.
Below we discuss five benefits of automatic payments to manage the cash flow in your business.
1. Reduced Risks
Did you know about 71% of businesses were victims of fraud attacks or attempts in 2021? Potential risks come with the manual processing of paper invoices and cheques. Automating payments may help to reduce such problems.
The accounts payable (AP) systems have in-built security controls for fraud protection. Additionally, these systems have regularities that ensure that all the data is secure.
These risks may result in overpayments, failed, or duplicate payments that take a long time to rectify. This may adversely affect the clientele relationship.
2. Cost Savings
Electronic payments are cheaper compared to paper checks. They also save you labor costs for manual data entry.
Processing your invoices promptly may land you on early payment discounts. This, in turn, optimizes your working capital. Additionally, through auto BillPay, an organization can get a fast return on its investment.
Responsibly managing your finances can be tricky, especially for the self-employed. Having the right financial tools and resources will help you effectively manage your finances. Automation allows you to save and set aside some money in an emergency.
3. Increased Integration
Organizations are now turning to digitalization to scale-up businesses. You can easily understand, predict, and forecast your financial data through automation.
Setting up automatic payments reengineers your invoices in a streamlined way. There is more visibility when handling your finances. Automation also optimizes the end-to-end accounting processes, thus facilitating better communication.
4. Time-Saving
Automatic payments use Optical Character Recognition (OCR). This technology scans and organizes data into digital tables. In the end, you save time and reduce the risks of manual data entry.
A lot of time is usually spent responding to inquiries about invoices and payment statuses. Automatic payments enable organizations to give their clients the status of their transactions.
5. Customer Satisfaction
Customer satisfaction is key to any successful business. Wrong or delayed payments may lead to a strained relationship.
Automating payments results in short payment cycles. The suppliers get paid on time, and their days’ sales outstanding (DSO) is reduced.
Automation also ensures that payments are made to the right accounts. This strengthens the workflow and solidifies the vendor relationship.
Benefits of Payment Automation
Finances are the most critical aspect of a business. Tracking and monitoring all your financial accounts can be hectic and time-consuming. However, adopting payment automation technology helps determine and assess your account status.
The guide above provides you with reasons you should consider payment automation.
If you enjoyed reading this article, browse this page for more informative posts.
