Making Integrated Payables Work for Your Business

Integrated payables is a B2B payments solution that automates and streamlines payments processes. The right integrated payables system can save your business time and money, and protect it from fraud risk. This article will explain the benefits and challenges of integrated payables solutions so you can choose the right payables solutions for your business.

What is an Integrated Payables Solution?

An Integrated payables solution is where a bank or payments processor automatically processes and sends payments to your suppliers. It replaces multiple manual payables workflows with a single process. Each payment period, your business sends a payment file to the integrated payables provider, who then processes the file and pays the suppliers on your behalf. Disbursements can be in whatever form each supplier prefers, including checks, virtual cards, automated clearing house (ACH), electronic payments, and wire transfers.

By replacing multiple disparate payables processes with a single file, your business can reduce processing costs and save time. But there are also several other potential benefits of adopting an integrated payables solution.

Benefits of Integrated Payables

The main benefit of integrated payables is the time and money saved by outsourcing manual payment processes. These costs, such as manually cutting and mailing checks, can be time-consuming and expensive for your business. Integrated payables providers can usually provide these services at a much lower cost. You can achieve further cost savings by having the integrated payables provider move remittances from check payments to electronic payments, such as ACH payments or virtual cards. Integrated payables also assist in cash management by having only one party process and issue payments.

Reduced Payment Automation Implementation Costs

Using an integrated payables solution saves your business from incurring large up-front IT costs to streamline and automate your existing processes. Instead, you can replace them entirely with a one-stop solution.

Improved Vendor Relationships

Integrated payables solutions let vendors get paid consistently on time and by their preferred payment types. Some solutions also provide a vendor portal where vendors can view their payment status and other information. This provides suppliers with a stable and predictable payment schedule and reduces disputes and inquiries.

Better Insights into Payment Data

Get insights into your payments without tracking data from multiple payment systems. This lets you easily track and verify current and historical payments, match checks issued against checks presented, prevent payments fraud, and make informed business decisions.

Greater Payment Security

Take advantage of advanced security policies such as two-factor authentication, payment tokenization, payment limits, multiple approvals, end-to-end encryption, and more to reduce fraud and mitigate payment risk.

Integration with Business Systems

Solutions can integrate with your existing accounting system, ERP, or AP automation software so you can automatically import data to your integrated payables solution. This reduces or eliminates manual data entry and the need to re-enter payment data in multiple systems, reducing errors and speeding up payment processing times.

Improved Cash Flow

Integrated payables can reduce payment processing times, so you can take advantage of early payment discounts. Electronic payments also post faster, so you’ll be able to get a nearly real-time view of your cash flow. You can also take advantage of payment methods such as virtual cards to realize early payment discounts while also extending days payable outstanding – and leave more money in your company’s hands.

Rebates on Commercial Card Transactions

Providers may offer rebates on virtual card and credit card payments. This lets your business earn money on payments made by card. As payment cards grow in popularity, especially in procurement, this could represent a revenue opportunity.

With these potential benefits in mind, let’s look at the challenges of implementing integrated payables solutions and if it’s the right solution for your business.

Challenges of Integrated Payables

There are several challenges your business must address when considering or implementing an integrated payables solution.

Are Your AP Processes Optimized?

There’s little point in automating your payables if your business still relies on inefficient manual processes. To provide clear payment instructions to an integrated payables provider, you need to have a clear picture of your invoices and accounts payable data. Focus on AP process optimization first before looking into integrated payables.

Are Your Teams On-Board and Ready for Transition?

Switching from established manual payment systems and existing vendor relationships to an integrated payables system can be disruptive. Moving to integrated payables will affect many departments, including Accounts Payable, Accounting, Procurement, and IT. Ensure that these teams are on-board for the change and have the resources and training needed to make the transition.

Can Your Existing Business Systems Accommodate Integrated Payables?

Are your accounting, AP systems, and ERP able to support integrated payables? Can they integrate with your solution provider and produce payment instructions in the correct file format? Carefully research any solution’s IT requirements to ensure they’re compatible with your existing systems.

Will Your Vendors Support the Change?

Moving to an integrated payables solution may require your vendors to switch to a new payment method and provider. You may also be adding your payment processor to your vendor relationships. These changes will impact your vendor relations, especially if things go wrong. Consider how you will manage your vendor relationships after implementing integrated payments, especially around tricky issues such as disputes and late payments.

Now that you’ve looked at the benefits and challenges, it’s time to talk about how to choose an integrated payables solution.

How to Choose an Integrated Payables Solution

At Stampli, we believe in taking an agnostic approach to payables and payment technologies. In a nutshell, we believe payments should be a commodity and that businesses should be free to work with any payment provider or system they choose, while enjoying the benefits of our AP automation solution.

The bottom line is that your accounts payable and payment solutions should be independent. If you are considering a move to integrated payables or any payables solution, it’s best to start with a standalone AP automation solution. That gives you a single source of truth for your invoices, approvals, and payables data. Then search for integrated payables solutions that work well with your AP solution while remaining independent. That way, you will ensure you have the flexibility to change payable systems or methods without having to reconfigure your entire AP process.

Also, consider integrated payables providers who offer flexibility in payment methods. Once again, this gives your business the freedom to choose any payment method without being tied to one provider.

Stampli Direct Pay: Maximum Integrated Payables Flexibility and Control

Stampli Direct Pay gives your business maximum B2B payment flexibility. You can pay vendors with ACH or paper checks, you can use another payment method such as Stampi Card, or an outside payment vendor. It’s your choice.

Own Your Payment Data

Stampli Direct Pay gives you total control of your payment data so you can stay in control of your vendor relationships – with no payment processor playing middle man.

Streamlined B2B Payments

Batch process ACH payments with individual transaction reconciliations in your bank statement without the need to leave our platform. Automatically print and mail paper checks from your bank account. And easily access any relevant payment data and documents any time you want.

Make Your Entire Payment Process Easier

Contact us today to learn more about Stampli Direct Pay.