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low-cost, and employees can initiate them remotely when the situation warrants. Issuing prepaid cards for incentive and refund payments and payroll cards to employees who don’t have bank accounts can further reduce the need to issue checks and help avoid payment delays during dislocating events.
END-TO-END PAYMENT AUTOMATION
Banks also offer invoice-to-pay solutions that automate invoice and payment processing and integrate with a company’s accounting system. These services automatically extract information from invoices and supply workflow tools to enable A/P staff to route invoices for review. Once approved, invoices can be aged and paid according to a company’s cash management policy. The bank can make all payments on the company’s behalf, either by issuing checks or originating an electronic payment type of the company’s choice.
This automated, end-to-end service maximizes efficiency throughout the entire payment process, even when A/P employees can’t get to the office.
LET SOMEONE ELSE DO THE PRINTING AND MAILING
As much as a company might like to initiate only electronic payments, it may have payments that it must make by check. A business that has a considerable number of these might want to consider using a bank’s check outsourcing services.
With check outsourcing, a company sends its bank an electronic file with all the information needed to print and deliver checks to payees, and the bank handles those tasks. Banks often provide check outsourcing as part of a Comprehensive integrated payables service that supports both paper and electronic payment outsourcing.
For businesses that only require the basic features of check outsourcing, a streamlined implementation process may be available, offering a relatively quick transition.
TAKE STOCK OF MANUAL PROCESSES
The business world is moving to electronic payments and for good reason: Electronic payments are more efficient, cost less, and are now a part of business continuity plans as a good practice.
With that in mind, financial managers should consider identifying all of the manual processes in their A/P operations and talking to their banker about appropriate digital solutions that can make their company both more efficient and resilient.
1 Nacha statistics. Available
at: www.nacha.org/system/files/2020-02/2019- ACH-Volume-Value-Infographic-Feb... RTP® is a registered service mark of The Clearing House Payments Company L.L.C. Zelle and the Zelle related marks and logos are property of Early Warning Services, L.L.C.
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MUFG TRANSACTION BANKING AMERICAS GROUP / SPRING 2021