Maximizing Your Accounts Payable Automation With Virtual Credit Cards
What Is Virtual Credit Cards
Successful accounts payable (AP) processes require streamlined processes and optimized cost structures. Automation is an essential tool for accounts payable professionals to ensure the accuracy and timeliness of payments. Virtual credit card (VCC)?a secure, tokenized form of credit or debit card?may be complementary solution to an AP automation system. When continuing to evaluate your business? AP process and the possible technology solutions, it is important to weigh the advantages of VCCs, as well.
For accounts payable automation, VCCs can enable seamless payments and offer innovative solutions to complex transactions. In this cashless environment, VCCs give business control and more secure way to make credit card payments and ensure payments are recorded into accounts within an organizations’ systems. As form of payment, VCCs can offer some distinct advantages for accounts payable teams.
First, VCCs can support existing vendor relationships. Smaller companies that do not accept corporate credit cards can still easily process payments faster and easier, which can improve AP efficiency. These cards can also enable greater visibility and control into payment timing and amounts without the need to obtain any additional information.
Second, VCCs offer significant cost savings. Payments made using tokenized cards are significantly cheaper than payments made using traditional paper checks due to the elimination of manual, paper-intensive processes in accounts payable. Tokenized cards allow suppliers to receive payments faster, with no chargebacks and no fee for transactions. This, in turn, increases the overall efficiency of the accounts payable function.
Third, VCCs offer increased control over accounts and expenditure. The accounts payable system can set up parameters to limit any potential misuse. VCCs can also serve as substitute for accounts issued by banks, as it gives account holders the ability to ?lock in? spending and allocate funds to specific vendors. This ensures further internal controls to ensure expenses do not exceed an agreed-upon budget.
Finally, VCCs can improve supplier relations. When business are able to pay suppliers on time, there is an opportunity to build lasting relationships. With VCCs, suppliers can be paid more quickly and reliably, thus maintaining better relations with vendors.
To make the most of VCCs within the accounts payable process, companies would need an automated solution. Automation technology will streamline the process of issuing, tracking, and reconciling the VCCs while reducing errors potentially caused by manual data entry.
When considering the specific software of an automated payment process, consult with trusted accounting partner on the technology that best instructs the accounts payable function of your organization. Many Softwaresolutions offer VCC capabilities and may be combined with an accounts payable automation system to provide maximum cost savings and control over accounts. An automated accounts payable solution also ensures accuracy, timeliness, and an improved bottom line.
businesseshould ensure their accounts payable process aligns with their companies operational and financial objectives. The implementation of VCCs as strongly supported payment method is an important step towards achieving this goal.
