Since day one of human existence, payment has been part of everyone’s daily life. Back in the day, people acquired and exchanged goods through a system of bartering and used salt as a form of currency, then lead to the development of the monetary system.
Civilization, economic development, and evolving technologies had lead to an increase in the number of different products and services that all require payment. Accordingly, the number of bill payments has increased.
With that being said, for you, someone who manages finance of at least one business, there is a way that you can focus on far more important matters than bill payments, like growing the business, building out the strategy, or taking on more clients/customers. As you know already know, being on top of bill payments is critical for improving cash flow and reducing the risk of business failure.
“Automating Bill Payment”
It’s simple as that! Simply adopting a cloud-based bill payment solution will give you many advantages. Automating bill payments will eliminate at least four different risks that you are currently exposed to.
Why should a business avoid late bill payments?
Late payment fees can be costly, especially when they accumulate over time. In addition, late payment fees may negatively impact your customer relationships. If you do not want to incur these costs, you will need to ensure that you have an effective system in place to monitor your accounts receivable and manage late payments.
How can a business avoid late payments?
The best way to avoid late payment is to be sure that all invoices are paid within 30 days of receipt. It's important to note that this only applies to invoices sent electronically. Paper invoices should not be accepted after 30 days.
If you're having trouble paying your bills on time, contact your creditors immediately so they can work out an agreement with you. Your creditors may offer you additional incentives such as lower interest rates or extended repayment terms.
How should a business manage late payments?
Late payments hurt your credit score because they show up on your credit reports. It's important to avoid this problem at all costs. The best way to do so is to set up automatic bill payment.
If you don't want to use an automated system, then you need to be sure that you're not paying too much attention to your finances. Make sure that you're not spending more than you earn, and that you're making regular deposits into savings accounts.
When automating your bill payment, say goodbye to:
The risk of late or missed payments
Adopting a cloud-based bill payment solution that offers recurring payments, you no longer need to worry about remembering to pay your bills on time or the risk of lost invoices in transit. Once you set up the bill payment, the platform will manage all steps in the process from there.
We, as humans, being busy with many bill payments to take care of increases the risk of extraneous, overpayment, and duplicate payments. Manually taking care of bill payments by going through a large pile of disorganized invoices will expose you to different types of errant payments. Through using automated software, that can sync with your accounting software, can help to make your bill payments process more accurate.
Invoice-related fraudulent activities are very common and very costly for companies. Adopting a cloud-based digital bill payment solution with the approval process in place will help to add a layer of caution for your business to help reduce being involved in a fraud bill payment. Moreover, cloud-based bill payment solutions have their own fraud protection measures built into the system to help add a layer of filtering to reduce and prevent companies from becoming a target of fraud activity.
Lack of audit trail
Manually processing all the bill payments can weaken and increase the chance of loss of audit trail. In the end, a lack of audit trail can cost the company. Therefore, the use of a cloud-based bill payment system will help to seemingly keep an accurate audit trail of all bill payments that were made for the entire company and ease the entire process.
Don’t you want to end all the horror stories related to late bill payments?
STOP paying unnecessary late fees and high interest on the late or missed payment.
START saving money by having your bills organized and paying early to achieve reductions as high as 10% to 15%.
STOP damaging your credit score, hampering the company’s ability to take out a loan or get help with financing.
START improving your or your client’s business's credit score to add a safety cushion for in times of real trouble.
STOP destroying your reputation. Why take the risk of damaging the company's reputation when the price of paying on time is so little compared to the damage. Don't negatively impact the trust and liability of your business to your vendor, clients, and industry.
START growing your reputation and strengthening connections to accelerate the growth of your or your client’s business.