Finance leaders now want to avoid leaving outdated technology and manual processes in place, which is why they are upgrading to an emerging solution called integrated payables software. This software automates the accounts payable processes as well as converts the payables from a liability to an asset.
What is an Integrated Payables Solution?Integrated Payables Solution is a combination of software and services that finance leaders can use. It comes from a provider which allows organizations to easily make invoice payments. This eliminates manual processes as well as duplicate processes, simplifying the life of whoever has to pay the bills.
How does the Integrated Payables Solution Work?
- The first step is to upload a standard check file from your accounting software to your integrated payables system.
- Step two involves the integrated payables system processing the file and segregating them according to type, and then routing them accordingly.
- The third step is to pass all payment and remittance data to the vendors across all payment modes such as virtual credit cards, checks and wire transfers.
What are the Benefits of an Integrated Payables Solution?
- It is now possible to execute all invoice payments, regardless of payment mode, in a single payments run. All the payments can be processed at the same time.
- Many integrated payables solutions provide a rebate on payments that are made via a credit card network. It means you get cash back on your payments.
- Integrated payables solutions saves finance executives a lot of time because all the payments are made effectively in a single run.
- You can minimize on your soft as well as hard costs by shifting all payments to digital, thereby saving money on printing and postage.
- Reporting and reconciliation of payment becomes easier, and you get a consolidated view of all your expenses.
Pricing for an Integrated Payables SolutionThe pricing can vary, depending on who your solutions provider is. It is dependent on factors like the number of transactions processed, type of accounting system used, and the features you want your integrated payables solution to have.
How do you Find the Right Integrated Payables Solution for your Business?
- Check if the software integrates fully with your company's existing ERP or financial reporting software system.
- Look for software that operates as a "bank-agnostic" payments hub. This means you can operate from multiple treasury accounts and connect through different business units.
- Make sure the software solution comes with a dedicated implementation team to ensure a successful implementation of the program.
- Ideally, your integrated payables software should come with real-time reporting capabilities, benchmarking statistics and the ability to look up transactions through multiple factors such as date, vendor, amount, etc.
- Integrated payables solutions automates all accounts payable processes.
- There are three steps involved, which include uploading your check file, after which the software processes it and segregates it according to type and then sends it out to vendors across various payment platforms.
- There are a lot of benefits to opting for an integrated payables solution like, it is cost-efficient, time-saving and a much simplified process as compared to the manual variant.
- The pricing depends on the features availed, type of accounting system used as well as who the service provider is.
- There are a lot of ways to check if the software is right for you, for example: check if the software fully integrates with your existing financial reporting software, if it has real-time reporting, and so on.