DIGITIZING VENDOR PAYMENTS: A SIMPLIFIED APPROACH

Accounting teams are essential for keeping funds flowing into and out of any dealership. No matter the number of rooftops, paper processes have long presented problems, especially for Accounts Payable (AP), who manage the vendor payments that keep your business running.

48% of mid-sized firms?stated that cost was a concern when implementing a vendor payment automation program.

Consider this.?Pymnts.com?recently reported that as many as 10% of invoices in the U.S. have an error in favor of the vendor, and nearly 8% are duplicates.

When you weigh the one-time cost of implementing an automated vendor payment program against what you potentially lose through erroneous and duplicative invoices, you lose more with the latter.

Automating vendor payments offers many benefits that can help alleviate any hesitations in setting up an automation program.

Manual Processes Aren’t “Cutting” It

A recent study found that?63% of participants?required employees to go into an office to cut and mail checks.

Every check must then be manually entered into an accounting system to be tracked and monitored.?3.6% of manually entered invoices?experience errors.

Replacing paper with integrated digital solutions such as?virtual cards?and ACH eliminates the need for manual processes, thus reducing cost errors and the requirement for on-site staff. Payments are posted directly to your ERP or accounting platform, expediting reconciliation efforts as well.

Paper Is Pricey

Paper, postage, envelopes, ink and people power all add up for dealerships cutting hundreds of thousands of checks every month.

According to?Taulia, the estimated cost per invoice is $11.57 each when you calculate labor, technology and resources.

Ditching paper checks is an easy way to reduce those costs. The savings opportunities are apparent and applicable to any size dealership.

Send Funds Faster

Mailing checks for payment is slow. You risk upsetting vendors with late payments and leave yourself susceptible to theft, especially as?mail theft and check fraud are rising.

You cannot risk hurting your vendor relationships. Digital and automated AP processes ensure timely delivery of every payment. Virtual cards and ACH payments are immediate, and there is no wait for checks to clear. Vendors get their funds sooner, and your records are updated in real time.

Every Payment Can Be Easier

Don’t let cost deter you from automating vendor payments for your business. Replacing paper checks with digital payment methods lowers the cost per invoice while also making AP teams more efficient.

Innovative Cost Consultants is a trusted and experienced partner who can implement a reliable and secure?vendor payment program?with NO COST to get started. We even enroll your vendors for you. Feel free to connect with us if you’d like to learn more.

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