Optimizing Operational Performance With AP Automation Software
ACH PAYMENT VS WIRE TRANSFER
For finance executives faced with making strategic decisions that maximize operational performance, accounts payable (AP) automation software is one of the best investments company can make. By enabling companies to process payments more securely and quickly, AP automation software can dramatically improve the efficiency of payments through Automated Clearing House (ACH) transfer and wire transfers.
ACH payments offer expediency and reduced costs for businesses, as these payments are settled within one to two days, compared to the three to five days for wire transfer. Moreover, processing payments through ACH involves considerably lower fees than wire transfer fees, making it the preferred choice for many organizations. Compared to cheques, ACH payments are also much faster, with payments moving directly from one business to another as opposed to cheque-based payments that can take several days and entail additional steps due to clearing.
When companies leverage AP automation software, they benefit from numerous advantages, including enhanced security and streamlined processing. Automating the payments process yields enhanced document control, improved accuracy, and greater protection against errors or unauthorized personnel. AP automation software also allows companies to benefit from manual data entry and store financial documents in central, secure repository, thereby further reducing the risk of potential fraud. Automation of the payments process also eliminates manual document tracking and duplication of information, thereby improving overall accuracy and accuracy.
In addition to reduced costs and improved accuracy and security, companies that use automation to process payments can benefit from improved visibility into the payments process. Many AP automation software solutions are equipped with central dashboard that provides an overview of the process and allows for real-time updates on payment statuses. This information can be used to track payment progress and set up payment thresholds as well as identify potential late payments or other issues.
For organizations looking to improve their operational performance while saving on costs, investing in AP automation software is an excellent way to do it. By automating the payments process, organizations can benefit from enhanced security, increased accuracy and visibility into the process, and reduced costs from more efficient ACH payments compared to wire transfers. Companies that have made the jump to AP automation software have experienced significant savings and improved operational performance, making it worthwhile investment for any organization.
