Digitizing your vendor payment process is one of the most important steps in moving your business towards a more centralized style of working. Not only does it help in the timely clearance of payments, but it also boosts the confidence that your vendors have in your business.
Businesses are built on trust, and timely payments and great services are two of the most important ways of ensuring that your business not only survives in the long run but also outgrows the competition.
Why does it make sense to digitize your vendor payment processes?
Going digital with your vendor payment process is the most cost-effective way of conducting day-to-day operations. The traditional methods call for the vendor to submit manual invoices, which then need to go through vetting, accounting, and other processes which take a lot of manpower, and time.
This increases the overall overhead costs while increasing the time required to process payments resulting in delayed payments that often lead to friction between the business and the vendors supplying the businesses with their goods and services.
In this article, we will look at 5 tips to help digitize your vendor payment processes!
Always Opt for Cloud-Based Vendor Payment Services
Localized systems cannot keep pace with expanding businesses; a cloud-based vendor payment process can be accessed from anywhere to keep a tab on invoices, payments, etc.
In a fast-moving world, where delayed transactions and the processing of invoices can make or break a business, businesses need to be at the top of their game.
Therefore, always invest in a cloud-based vendor payment service to be up-to-date on what’s happening, and what needs to be taken care of.
Invest in a Custom Dashboard
Talk to your payment gateway providers to see if they already have a centralized dashboard from where you can view all of the transactions taking place in a day, or if that is not available, partner with a service provider who does offer that facility.
A centralized dashboard will give you a bird’s eye view of the day-to-day transactions, helping you understand where your money is going vs. where it needs to go.
This will help you better prioritize your payments so that you can take care. The most important things first, before moving on to the next.
Choose a Reliable Service Provider
Choosing a reliable service provider is key to ensuring that once the system is up and running. You don’t run into any glitches. Even if that is the case, you can expect prompt solutions to resolve any underlying problems.
Enable Recurring Billing
If there are certain vendors, who are required to be paid a certain amount on a monthly/weekly/yearly basis. Then setting up recurring billing can help you avoid late payment charges. Due to its simple setup once, you can be assured that your payments will be received on time. The exact dates, without any input from your end.
Vendor Management
A payment system is not only helpful in clearing payments, but it also helps keep a tab. On what’s available in your inventory and what’s not.
As a business owner, it’s important to stock up on products, and items that are bestsellers. Pay attention to the payments made on different products by using the system. See which products require frequent restocking.
This is a great trick for keeping a track of the products that are selling like hotcakes.
Ultimately, digital payment systems resolve this problem as they streamline payments. And payments cycles happen within the set timeframe.
