Are you still making payments by check? Consider using digital forms of payment instead. You'll save time and money—while also eliminating the risk of check fraud—by paying electronically.
Electronic payment methods offer ways for you to control when, where, and how money reaches your vendors. Stretch your payables and reduce your working capital needs by making just-in-time payments.
If any of your vendors don’t provide electronic payment options, let them know you’re willing to work together to make changes. Transitioning to electronic payments won’t happen overnight, so just take it step by step.
Make payments online.
- Send electronic payments directly to your vendors, payroll processors, and taxing agencies through ACH to avoid the costs of issuing and reconciling checks. Additional ACH fraud protection services can help curb your payment-related losses.
- If any of your vendors don’t accept electronic payments, use a bill payment service to route installments by paper or electronically, depending on what the situation calls for.
- Use same-day ACH, wire transfers, or purchasing cards to make just-in-time payments and be sure to take advantage of any early payment discounts.
Replace checks with cards.
- Consolidate billing and expense reporting by using business credit cards.
- Tighten your control over company expenses by setting limits on travel, entertainment, and other categories.
- Use purchasing cards to automate costly vendor invoice payments, control timing, and reduce exceptions. Card program management software can track payments and create efficiencies in your payables processing.
Use electronic payroll.
- Implementing direct deposit will reduce your check volume, save time, and lower the risk of check fraud.
- Upgrade your software and update your contracts with payroll processors so that payroll is automatically integrated into your financial system.
- Provide your employees with online access to payroll details, W2s, 1099s, and information about benefits.
Control check fraud.
- Send your bank periodic (weekly or monthly) files with issued checks to match paid items against your account. Use online banking services to view exceptions and make pay/return decisions daily.
- Integrate posted account transactions and balances into your accounting system to automate reconciliation.
- View archived paid check images to resolve issues with your accounts payable quicky.