If you are a B2B company, you know that processing payments efficiently is one of the best ways to maintain positive client relationships. You may also know about the high cost that can be associated with issuing payments efficiently, especially via paper checks, which is currently estimated to be $26 to $54 billion annually! This significant cost is the reason nearly 80% of businesses are switching to electronic forms of payment.
If this resonates with you, you may want to look into an automated ePayable solution. Automating your payments can completely eliminate vendor checks, as well as improve payment security and lower your disbursement costs to zero. But in addition to these significant cost-saving benefits, your company may actually end up paying less to vendors as well. How? By taking advantage of early payment discounts through your automated solution.
What are Early Pay Vendor Discounts?
Making vendor payments on time is absolutely necessary to maintain positive vendor relationships and avoid late fees. What if you could quickly pay invoices before they are due and pay less than the invoice amount? It may sound too good to be true, but many vendors offer early payment discounts to convince companies to pay invoices faster.
One common early payment vendor discount is the “2/10 net 30,” which means a payment due in 30 days can be reduced by 2% if paid before the first ten days. The benefit to the vendor is that they can keep more cash on hand and reduce the time spent waiting for payment. For your business, paying invoices early means reducing the amount owed and makes it easier to reconcile accounts.
AP Challenges Affecting Invoice Payments
There are many reasons why your company is not capturing these early payment discounts. The invoice process is slow with many delays occurring during approval routing or from manual entry errors. Additional delays happen while your staff stuffs envelopes to mail checks, maintains different payment types for multiple vendors, or misses deadlines due to poor schedule management.
These types of AP issues are common and cause anxiety for companies trying to reduce costs but lacking a way to boost efficiencies. Even worse, client relationships may suffer due to late payments or problems with payments. If your AP department wastes time tracking down invoices around the office or manually entering data into a spreadsheet, making payments on time is going to be difficult, much less paying before they are due. This is where an ePayables solution can save your company.
Boost Your AP Process and Reduce Costs with Automation
Many AP processes rely on manual data entry, routing, and paper storage. Automation makes it easier for staff to complete work and reduces human errors that can cause further problems. An ePayables Solution that offers automation will help your business process invoices quickly and send payments much sooner. For vendors with early pay discounts, automation can boost your invoice process to catch those discounts and lower costs. Additionally, ACOM prints and mails AP checks free of charge and helps transition the majority of your vendors to electronic payment methods. They track payment due dates and match invoices to payments, saving your staff the headache of tracking it manually.
With automation, your company no longer needs to manage its vendor data, reconcile bank accounts manually, or track payment types. This ePayables Solution accommodates the needs of your vendor for any of their preferred domestic or global payment methods. An automated ePayables solution helps your company capture vendor discounts by making it easier to quickly approve invoices and send payments through your vendor’s preferred method.
Ease Transition Through Integration
Adopting new technology can seem daunting. Onboarding employees and training them on a new system can cost time and money, and transitioning vendors can be difficult. With that in mind, it may seem counterintuitive to improve efficiencies by adopting a new technology solution, but with ACOM’s ePayables Solution, your company can save money upfront with fast setup and integration. Waste no time getting started – ACOM can have your company 100% paperless right away and handles transitioning your vendors themselves.
Many automation solutions make your current accounting solutions obsolete, meaning you need to spend more time transitioning information into an entirely new system. ACOM’s solution has multiple integration options based on your company’s needs and current technology. You can send and receive data that works directly with your existing accounting software, meaning you will not need to transition account or ERP data into a new system.
An ePayables Solution for Early Pay Vendor Discounts
Using an automated ePayables solution drastically improves your AP process. Your AP department’s goal is to process invoices efficiently and pay vendors on time. By automating every step of this process, your company can not only pay vendors on time, but you can also take advantage of early pay vendor discounts to save money. If you could reduce overall invoice payment amounts for the majority of your vendors, you could lower outgoing expenses and increase internal efficiencies. An ePayables Solution like ACOM’s helps you transition vendors to electronic payments, track vendor data and due dates, quickly send out paper checks, and approve invoices. You can consistently catch early payment discounts by speeding up your AP processes and automating payments. It’s a win-win for you and your vendors because they get paid much faster, and you benefit by paying less.