Currently, most businesses utilize a variety of methods to pay bills, including paper checks, online banking, auto pay and a wide range of integrated software solutions.
Fortunately, technology solutions incorporating payments automation are improving the slow, outdated manual processes associated with accounts payable and accounts receivable, in favor of electronic payments.
However, what should sound like good news is often a double-edged sword, as a single invoice may require entry into multiple systems, such as software applications and online banking portals. This double data entry increases the risk of error, delay and payment exceptions.
As a result, more businesses are turning to cloud-based solutions, such as PayMaker by FNBO. PayMaker streamlines the payments landscape for you and your accountant and supports faster growth for your business by reducing manual workloads.
Using PayMaker to Automate Payments Processes
PayMaker is a cloud-based solution capable of syncing with popular software packages to create a smooth and efficient payments experience for both businesses and their accounting firms. Payment sync ensures that existing financial processes and reports continue without interruption, while eliminating the need for double data entry. Simply enter details into PayMaker and all relevant systems are updated.
PayMaker also addresses the most pertinent pain points that businesses and their accountants face when handling invoices and bill payments.
Eliminates the manual process drain: By some recent estimates, companies who rely on manual AP processes take five times longer per invoice to initiate payments than those who use automation.[i] By digitizing the invoice process and instituting electronic payments, PayMaker reduces errors and manual steps, cutting the time it takes for vendors to receive payments in half.
Automation also speeds up the accounts receivable processes. For example, a landscaping firm with 150 regularly billed clients may send out the same number of invoices monthly. As payments come in using a variety of methods, each must be manually matched to the appropriate invoice. This can create a reconciliation nightmare as payment timing and methods vary frequently.
When businesses or accountants use PayMaker to send an invoice, the invoice is emailed to the customer and contains a payment portal allowing customers to pay via ACH or credit card, eliminating half the time it typically takes to receive payment. Once the payment is made, reconciliation between the invoice and payment happens automatically. With the click of a button, accounting software is updated with all applicable information. Each of these actions are trackable and leave an audit trail for accountants and businesses.
Speeds up slow approval cycles: Since invoice and payment approval remains a task that most businesses want to control, multiple hand offs between accountants and business owners are often required. For example, a single check may need to be sent via courier to the business for signature and then returned to the accountant for delivery to the vendor. If the check isn’t approved immediately, the payment is often late. In many other cases, the business owner does not have enough time and must wait until the end of the day or week to initiate payments. This often occurs at home, late at night or early in the morning when the noise of a busy work and personal life finally quiets down.
PayMaker makes time-consuming approval cycles like these a thing of the past. As soon as your accountant sets up a payment within PayMaker, approval requests are generated electronically and then tracked for future review. PayMaker even sends out reminders to ensure invoices don’t get lost in the flow.
Approval can be granted from anywhere, and once this occurs, PayMaker immediately releases an electronic payment to the vendor. As an added bonus, vendors are kept in the loop with automated emails indicating the status of their invoice and when it has been paid.
Protects against payment fraud: With half of all businesses reporting at least one run in with payment fraud,[ii] businesses and accounting firms need a way to securely transfer information and make payments. PayMaker utilizes fraud-busting controls, such as Check Positive Pay and multi-factor authentication, to ensure the security of payments transactions.
Improve Efficiency with PayMaker
By reducing or improving workflows, PayMaker can create a more efficient operating environment, allowing your business to make and receive payments faster.
Best of all, PayMaker is available for businesses of all sizes, easily making it your accounting firm’s new best friend when it comes to payment processing. Sign up for a free trial today.
The articles in this blog are for informational purposes only and not intended to provide specific advice or recommendations. When making decisions about your financial situation, consult a financial professional for advice. Articles are not regularly updated, and information may become outdated.