Managing payments in any industry can be complicated and challenging. Keeping track of funds coming and going isn’t for the faint of heart. The pursuit of streamlined operations and increased efficiency is a laudable goal for any company. And with digital payment solutions, that goal is completely attainable. Instead of relying on manual payment and reconciliation processes, digital payment solutions offer numerous benefits for every part of your business. From paying suppliers to reimbursing expenses, a digital payment solution puts everything you need in a single place to help you run your business more efficiently. Here are five areas where digital payments can streamline your business today.
In making supplier payments, companies must ensure they follow some specific guidelines that include:
- Avoiding discrepancies
- Paying on time
- Making secure payments
- Checking for errors
- Following industry compliance standards
Digital Payments software makes remitting and paying supplier invoices easier than having your accounts payable team do it manually. It encrypts your data as you make the payment, ensuring it’s secured following compliance standards. Artificial intelligence and machine learning algorithms help validate invoices and ensure you’re not duplicating them or over/underpaying them. It helps you manage and pay them on time. Digital payments remove many of the clerical problems that result in late payments while making it easier for companies to pay their suppliers properly.
There will be times when an employee must make a trip or purchase something for the benefit of the company. At those times, they might need to drive somewhere or pay a bit out of pocket. When that happens, companies must ensure a reimbursement program is set in place to ensure their employees get reimbursed. Sometimes, federal law requires it, as in the case of the IRS mileage reimbursement rule. Digital payment systems help you monitor employee reimbursements for several different things. The first is to ensure they are reimbursed. The second is to keep control of your finances. And the third is to watch for potential fraud. On the first of these points, your digital payment solution will drastically simplify the process and seamlessly reimburse employees on a global scale for any expenses they incur.
P-cards, or purchasing cards, are a type of digital payment system that allows companies to streamline electronic payments. Whether it’s purchasing goods locally or using a buying guide, P-cards are safer and better than using petty cash (or company credit cards). They help reduce the company’s paper trail helping to track their spending. P-cards don’t have late payments or fees, so managing them is easier and more convenient. Digital Payments solutions can keep track of P-card purchases and payments. It also makes manual reconciliation—one of the most time consuming manual tasks—a thing of the past through AI-powered automation.
In addition to monitoring a company P-card, payment solutions can readily generate virtual cards for business use. Rather than sending employees or authorized buyers into the wild with petty cash, a virtual card can render digital payments safe and seamless. Virtual credit cards are used for online purchases and other expenses that P-cards don’t necessarily cover. But instead of using your own bank account information, you use the purchasing card’s number and PIN to make the purchase. Virtual cards can be created, managed, and accessed through a digital payment system. Whether they’re being used for business expenses, travel, managing budgets, or subscriptions, virtual cards are a useful tool for any businesses spending and risk assessment needs. Virtual cards increase your company’s control on where money goes and lets you monitor it more directly. That, in turn, effectively helps minimize spending risk and makes risk assessment a seamless process.
Expanded Banking Relationships and More
Utilizing digital payments and transactions can also help companies expand their banking relationships. Virtual cards and improved payment processes can help you maximize your working capital and strengthen/expand your organization’s bank relationships. In addition to improving the customer experience, digital payments solutions can help business owners manage their cash flow, streamline operations, reduce costs, improve security, and increase productivity. With the right digital payments solution implemented into your workflow, you can take advantage of everything automation and AI have to offer while streamlining all your payments across the board.