Nearly everyone uses the cloud in their personal lives, from storing photos and accessing financial accounts to sharing documents and watching movies. But when it comes to the business world, the transition to cloud-based payments has been a slower migration, especially when it comes to B2B payments.
There is no doubt that paying by check is a comfortable method that many professionals have grown accustomed to, with 86% of organizations still using checks for outgoing payments, according to the 2022 Association of Financial Professionals (AFP) Payments Cost Benchmarking Survey‡. However, in today’s digital age this method is quickly becoming an outdated practice that costs more time and money than necessary.
Luckily, there are solutions available for businesses looking to transition to electronic payments quickly and cost-effectively. These secure and convenient integrated cloud-based payment networks help businesses reduce cost, earn rebates, boost efficiency and enhance security. Here are three positive benefits for your business to consider for moving your payables to the cloud:
Any integrated cloud payment system you consider should work seamlessly with your current accounting system in a single, simplified process across all technology platforms, bank accounts and payment types. This includes a support team that will work with your IT department to make sure everything runs smoothly before your first payment. The solution should also work with all major databases, such as Oracle, JDE, Lawson, SAP, Microsoft Dynamics and others.
In addition, it’s important to know how many vendors are already accepting electronic payments through the provider’s network. The more advanced networks will accept payments from more than 400,000 businesses who are already established in their system.
An integrated cloud payment network should ultimately improve your vendor relationships with a positive payables experience, optimize your team’s productivity by reducing manual tasks and simplify processing with a single payment file.
2. Cloud payments help reduce check fraud for businesses
The 2022 AFP survey also found that 66% of organizations experienced check fraud in 2021‡ – a 4% decrease in the last four years. A secure electronic payment system will help reduce this risk dramatically. It’s important that you verify the company authenticates all of your vendor’s information, including back account verification and electronic remittance delivery. This will help you significantly reduce the risk of payment fraud that results from account takeover, intercepted payments, business email compromise and other fraudulent schemes.
The cloud payment network should also require your vendors to provide their own corporate data that they in turn validate, verify and maintain. This ensures there is no need for your company to maintain or update sensitive vendor bank data.
3. Cloud payments allow for more efficiency and time for teams
The integration of cloud payments within your company allows your accounts payable team to spend more time concentrating on high-quality deliverables for customers, rather than manual maintenance of vendor back details. Your accounts payable team has more time to focus on strategic priorities by utilizing the efficiency of cloud payments that streamline payment automation.
Cloud payments allow for your customers to receive information just how they like it, fast and hassle free. The cloud payments also improve control over payment timing to help your business manage your cash float each month and increase efficiency with single payment files and electronic processing.
If you move your payables to the cloud, it should ultimately reduce cost, streamline payments and drive revenue for your company. The integration of cloud payments can help you optimize revenue and maximize output.
If you are interested in learning more about how UMB can help your business as a financial partner, visit our website.
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