Automated Invoice Processing Puts An End To Late Payments For Your Suppliers
Failing to make timely payments to suppliers impacts the vendor relationships which could result in interruptions in procurement and cost to the organization. Due to late payments, 60% of UK businesses have been charged a fee and 23% have experienced termination of products or supplier relationships. Manual Accounts Payable processes take time and are prone to mistakes. Hence an Invoice Automation solution like Bautomate is needed to pay the suppliers faster and to speed up the entire process ensuring compliances with policies making it error free. Automated invoice processing puts companies in control of their financial affairs. Although the goal is to avoid late payments, account payable automation provides the necessary real time financial data to the team which helps make early payments to obtain potential rebates from suppliers in order to save money.
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Effects of Late Payments
Payment overdue usually result in penalties and destroy the relationship with vendors, which also affects the global business relationships. A study reveals that most of the startup businesses shut down due to repeated late payments. Deploying invoice automation can make a huge impact in the account payable process as the routine functions can be automated to achieve greater efficiency and accuracy.
High Cost of Delayed Payments
Missed or late payments affect a company as a whole, including stable short term cash flows and long term financial results. With the suite of automation solutions available today, companies no longer need to suffer from organization payment delays. Businesses do not need to miss payments or be late because of a delay in manual processes. Simplified transactions increase efficiency by saving time on routine tasks, such as approving invoices and payments. Automation enables the team to work together remotely to identify bottlenecks and reduce/eliminate audit and approval delays. Through the intelligent use of automated tools, the Accounts Payable team uses their time and talent for more advantageous projects, such as actively looking for ways to save on bill payments.
Maintain Positive Relationships With Suppliers
Strong relationships with suppliers are critical to a successful company. Companies depend on suppliers to build their products and expect quality products at competitive prices. Delayed payments will negatively impact vendor relations. Some suppliers may charge late fees, while others may end the contract as a result of late payment. Disruptions in supply can interrupt production, resulting in significant losses for the business and it will be difficult to find new reliable suppliers.
Bautomate’s Invoice Automation allows the AP team to stay on track to stop late payments and proactively work with vendors when issues arise.
Late payments can negatively impact an organization's reputation, production and general morale by compromising relationships with suppliers. Automated bill processing eliminates manual process errors to ensure that organizations are always on track financially. Request a demo today to get started!
