7 Reasons Why Finance Teams Should Use Payment Automation In Business
Updated: Oct 17, 2022
It’s no secret that finance teams have a lot to juggle. And it’s a well-known fact that the accounting processes and tasks that fall under finance are critical to any business.
One of the best ways to completely streamline and enhance said processes and tasks is through payment automation.
No matter the size of the business, automation will improve any financial process.
And the best part? This will take some of the pressure off the finance team.
Here’s a list of all the reasons why you should automate your payment processes.
Let’s get started.
What is Payment Automation?
Exactly as it sounds, Payment Automation is the process of making all the payment/accounting functions automated.
Automating payment management ensures that you pay all invoices on time, and it makes sure that transactions are only made when there are enough funds to cover them.
This means that your cash flow becomes easier to manage, relationships with vendors are improved, and you don’t have to worry about fees for late payment or even missing invoices.
This is the easiest way to streamline your AP and save time.
There are two critical functions in accounts payable (AP): paying invoices on time and recording these transactions correctly.
Automation can allow you to effectively do both.
Automation Saves Time
One of the biggest advantages of using payment automation is to cut down on time-consuming elements.
The software can handle the repetitive tasks for finance teams, helping them streamline routine operations.
By saving time on repetitive tasks, finance teams can now focus on other areas, resulting in a stronger and more efficient finance team that adds more value to a business.
Automation Saves Money
Payment automation can help businesses significantly reduce their financial costs.
By automating tasks, a business will require less human input. This could mean that you won’t need to hire as large a finance team, which will save you money in the long term.
Automation can also work around the clock to help boost your production speed without any added costs. This makes it far easier to scale your financial system without the added cost.
Finally, automation will help businesses save money through enhanced accuracy. Automation removes the element of human error and ensures that all processes are done correctly the first time.
This means that you don’t have to worry about potentially expensive mistakes or costly rework.
Financial Tasks Become Easier to Scale
If you’re a small business or even a solopreneur, then it’s likely that you don’t have the resources to start out with a full finance team.
By using an automation tool, businesses can easily stay on track of their financial duties from the start, and as they grow.
You won’t have to worry about increasing the size of your accounting team or introducing new accounting systems as you expand and things get busier.
Instead of worrying about growing your finance team, payment automation can easily operate on a larger scale. This makes it far easier to increase your operations.
Businesses Can Achieve Greater Accuracy
With a payment automation tool, there’s no risk of human error. The system is able to handle a wide range of manual processes and complete them with complete accuracy.
No matter how experienced your accounting team is, there is always the risk of human error. And this can result in time-consuming and expensive rework.
By automating repetitive tasks, businesses can get all of their expense management inputs done without worrying about mistakes.
All manual data entry can be executed flawlessly, which makes it far easier to stay on top of your AP.
Easy Access To Expense Reports
Tracking business spending through expense reports is a breeze.
What does this mean for your business? Simple. You have access to updated expense reports at the click of a button - anytime, and anywhere.
No more spending countless hours creating manual expense reports and all expenses are properly accounted for without a lot of effort.
With the use of automation, these expense reports will always be created with absolute accuracy.
There is no need to worry about creating an incorrect expense report that you have to track down and adjust at a later stage.
No More Chasing Late Payments
Late payments can hurt your cash flow and the way your business operates. Unfortunately, late payments are a common reality for many business owners.
Effective automation tools allow you to issue automated late payment reminders. This does the dirty work for you, so you won’t have to follow up with late patent customers.
Automation tools are also able to automate payment requests immediately upon booking. This takes the potential issue of late payments off the table completely.
Improved Invoice Management
There are many different aspects to invoicing, and this process can be a bit of a headache at times.
By automating this process, you’ll be able to cover all of the correct details and tick all the boxes with ease.
By implementing automation, there is no need to worry about sending incorrect invoices or using unnecessary man-hours by putting together complex invoices. All of the difficult tasks will be put on autopilot.
Start Using Payment Automation
Moving your payment processes to an automated system has never been easier. By using an app like Sweep, businesses can completely streamline their financial operations without any effort.
From saving time on manual data entries to automating AP, your entire financial department will be optimised. And if you don’t have a lot of specialist accounting knowledge, automation can handle difficult tasks for you.
This makes it way easier to run your business, knowing that important financial tasks are well taken care of.