Optimizing Operational Performance Through Accounts Payable Automation
ACH PAYMENT VERSUS WIRE TRANSFER
In the rapidly changing and increasingly digital world, financial departments are feeling pressure to move away from legacy processes and adopt modern accounts payable automation. Through automation, organizations can dramatically improve operational performance and reduce manual effort. One of the key process areas that can be adapted is payment types. Companies now have the option of using ‘ACH payment’ or ‘Wire Transfer’ Payment types to settle payments and the goal should be to select the best option for each individual transaction to optimize accounting operations.
For many businesses, ACH payment has been preferred option due to the low cost and faster speed of payment processing. Unlike wire transfers, ACH payments can be set up in minutes and require no advance setup. The ability to automate the entire process further reduces costs and saves time for finance departments. Additionally, by setting up framework for automating ACH payments and ensuring it is properly monitored, businesses can ensure consistent risk management and help ensure that only valid payees have access to the system.
Wire transferalso presents significant advantages in the form of added security. Wire transfers involve encryption and the transfer of precisely structured data, which helps to maintain highly secure information within the network. The process is also highly auditable, allowing traceable audit trails to be built. Data is securely stored within the system and gives an organization more control over the movement of funds than with ACH payments.
Accounts payable automation software provides the tools and features to optimize payment types and operations as whole. As most accounting systems are built to accommodate both ACH and wire transfers, organizations can evaluate their operations and make sure any payment methods they select fit in with their businessestrategy and goals. Automated payment processes can reduce human errors, reduce costs, and differentiate the business from its competitors.
Finance executives should look for accounts payable automation software that has best-in-class security to ensure the safety of financial data and the reliability of the payment process. The software should also be easy to use and scaleable, enabling organizations to grow their operations seamlessly. Furthermore, the system should accommodate various payment types, from ACH payments to wire transfers, and allow for secure, customized automations.
By taking advantage of accounts payable automation software, financial departments can create more efficient and cost-effective payment system. Automating payment types, such as ACH payments and wire transfers, can help organizations take control of their operations, grow faster, and save costs. Thoughtfully evaluating the best option for each payment type is the most effective way to optimize performance and reduce manual effort.
