It should go without saying that payment is a critical piece of any commercial transaction, but the inefficiency of B2B payment processes does little to reflect their importance. Today’s businesses have options for modernizing, streamlining, and optimizing their payment management.
Digitizing invoicing and payments
With the sheer amount of digitization happening now, it may be shocking to learn how many companies continue to rely on paper invoices, cash payments, and checks. These are time consuming to accept and process, and they’re far too easy to lose. Digital invoices and payments are easier to sort and save, increase processing efficiency, and reduce the risk of lost revenue.
Traditional business owners may still feel paper files are more secure, and there are risks involved in digitizing payment systems, but the payoff is more than worth it. With boosts for efficiency and productivity, and a significantly decreased margin of error, digital payments are the obvious choice.
Automating payment cycles
Even with digital invoicing and payments, current processes remain inefficient and time consuming when they rely on manual data entry and payment cycle management. This also exposes them to a degree of inevitable human error. Automating payment cycles saves human effort, reduces errors, increases efficiency, and ensures payments are made and processed in a timely manner.
Automating payment cycles can decrease payment backlogs during times of economic disruption and save a lot of hassle and headache when things are running smoothly. There are several payment cycle automation software programs available, so be sure to research the options carefully to select the right one for your business needs.
Linking data to payments
Among the more significant challenges associated with digital B2B payments is the lack of relevant information tied to the payment itself. Paper checks have convenient memo lines to note the reason for a payment (e.g., an invoice number), but digital payments are often separated from critical associated data. Searching for relevant data to match to a digital payment is yet another time consuming activity, and when the data cannot be located, the payment is useless from an accounting perspective.
Linking relevant data directly to payments eliminates this potential problem to increase efficiency and minimize confusion. Before investing in B2B payment automation software, be sure your choice includes features for data matching and payment reconciliation.
Digital, automated invoicing and payments increase the accuracy and efficiency of your B2B payment management cycle.