Optimize Your AP Payables to Maximize Cash Flow

US businesses waste over $200B annually on antiquated, manual, paper-based, poorly controlled payment processes. In response to the extreme changes and business obstacles brought forth by COVID-19, CFO’s and other key decision-makers are searching for new ways to reduce inefficiencies and cut costs.  The decision to switch over to electronic payments processes is proving to be an effective route, allowing finance teams to immediately—and often dramatically—reduce costs, improve operational efficiencies, optimize cash flow, and align finance with the company’s larger digital transformation initiatives.  The result? AP departments, traditionally viewed as cost centers, are showing how optimizing their payables can help maximize cash flow while allowing the department to keep up with increasing pressures to operate more efficiently and cost-effectively.

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When it comes to AP Payments as a Service solutions, no two solutions are alike.  For businesses exploring AP Payments solutions, there are several factors to keep in mind.  First, it should be one that is electronic first, but still has the capability to support multiple payment options, including the more traditional pay-by-check method. Even though paper checks are losing their grip on B2B payments volume, some suppliers still prefer them. Three years from now, it is expected that electronic payments via ACH will finally surpass the volume of paper checks—but in order for companies to really reap the benefits of an automated and electronic payment approach, they must find the right set of tools and processes to enable that type of meaning full transformation.

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Payments as a service solutions offer a wide range of benefits, including offering suppliers multiple payment options, while helping buyers to reduce or even eliminate operational costs. Additionally, by providing key insights and real-time visibility of all payments, AP staff are unencumbered, left to focus on more value-added activities instead of being bogged down in manually driven AP processes.

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So, what are the barriers to adoption keeping companies from embracing AP Payments as a Service solutions? “A lot of the time folks just aren’t asking the right questions,” stated Ernest Rolfson, Finexio CEO.  In a recent presentation ,Rolfson highlights some of the key questions that AP teams should ask—questions that will help to systematically identify which suppliers can be shifted over to another payment type, so your company can generate more cashflow and cut down on operational costs.

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A common concern when evaluating electronic Payment solutions is ‘How will my existing AP processes change?’ With Payments as a Service, like the one provided by Finexio, you don't have to change or alter your existing AP processes or invest in learning or adapting to new technologies. Clients can continue working in the same financial systems, using the tools they’re already comfortable working in.  Finexio can connect to all the major ERP and Accounting systems to ensure that for the client, the transition is seamless and easy.  Instead of AP staff spending countless hours printing, labeling, stuffing, and mailing paper checks, Finexio’s integrated technology solution and white glove customer support services will work to customize payment methods that are right for your suppliers.  The result? Improved cashflow, reduced operational costs, and holistic insights via the Finexio portal customer dashboard.  

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To learn more about Finexio’s AP Payments-as-a-Service solutions, as well as the future of AP processes, checkout a recent virtual session where Finexio CEO, Ernest Rolfson shares his perspectives on these topics and more.