The vendor payment sector has seen a massive revolution, and paper invoicing is now a thing of the past. Automation has taken over, and businesses are leveraging the convenience it brings to process those bulk payments.
On one end, most businesses successfully accept this transition from paper invoicing to vendor payment automation. But on the other hand, some small & medium businesses find it quite difficult to understand and implement the process.
It is mostly because of the lack of clarity among the business owners about the convenience this new vendor payment process will bring! But the ultimate truth is that you will experience a faster payout process.
So, if you are debating whether to switch to automated vendor payment solutions, this article will enlighten you with the perks of adopting this modern approach.
Understanding Vendor Payment
For new businesses, you must understand vendor payment before you can take a leap towards automating its approach. In simple words, vendor payment is referred to as the invoice or accounts that are payable by you or your business. In most cases, the vendors are your suppliers, without whom the business will cease to exist.
Therefore, to ensure you build a good bond with the suppliers, the only thing you have to do is manage their payments in a timely & scheduled manner. It is the core fundamental necessity for your business to keep running smoothly.
Challenges with the Traditional Payment Procedure
The traditional vendor payment procedure was quite strenuous and lengthy. It is often managed by a large staff of the organization. In such an approach, the vendor sends out an invoice for all the goods or services they provide to the company. The invoice will be sent to the dedicated team or employee of your business at a specific time of the month or a quarter of the year.
Depending on the invoice, the dedicated employees will feed the data into their system, check for taxes, and complete other necessary procedures. Following that, they need to get the signature of the authorized head of the department, and then the invoice will be processed before the due date.
The vendor will then be paid, mostly through a voucher, which will have the TDS amount deducted, and the transaction will then be recorded in the company accounts. Now, this is a very lengthy and straining process, which has a high scope of errors. The idea of telling you this is to make you aware of your business’s challenges with this manual approach. Some of them are:
1. Manual Entry of Data
Entering the vendor data and their invoice details into your system manually is a tiring job and increases the chances of human error. Payment-related grievances, miscalculations, and many other such problems might arise, which are difficult to troubleshoot manually.
2. Controlling the Vendor Invoices
For most businesses, working with just one or two vendors is impossible. For some applications, you might need a lot of vendors working collectively to get the job done. In that case, the number of bills increases at the end of every month, and managing or dealing with them all manually is a big mess.
If you miss out on any of the due dates, the relationship between your business and the vendor will be adversely affected. Following that, the penalties and interests will also come in! Insufficient administration of invoices is a common challenge when your company handles vendor payments manually.
3. Lack of Security
When you have less number of bills to process every month, a spreadsheet might seem like a good option. But, when you are dealing with a lot of vendors, you must move out of that spreadsheet right away. It is because vendor payment data is crucial for the company, and the spreadsheets aren’t secure enough to store such data in large volumes.
The spreadsheets are easily accessible, and the data within can be edited or altered without concerning any authorization. And that can be a costly security breach for your business!
Switching to the Automated Vendor Payment Solutions
When switching to an automated vendor payment solution, you have the liberty to set everything on auto processing, including payments, TDS deductions, bookkeeping, syncing the data, and much more.
FidyPay offers a feasible and productive solution to streamline vendor payment. Some of the features of this modern-payment solution to vendors has to offer you are:
1. Hassle-free Sourcing of the Invoices
You don’t have to manage the invoices manually anymore! You can add the invoices to FidyPay’s software portal in a few easy ways. You can forward them via email, ask the vendors to directly upload their invoices through FidyPay’s portal, or import them using your accounting tools. The process is simple and speeds up the entire process.
2. Auto Capturing of the Important Invoice Details
Manual data entry hassles are taken care of! Hence, this means no more human errors in recording the vendor payment data in your system. With FidyPay’s vendor payment portal, all the important invoice details will be captured automatically and synced onto the secured sheet. In this way, you needn’t worry about the duplication of any specific invoice or multiple payments.
3. Auto-Deduction of the TDS
You don’t have to take the hassle of manually calculating the TDS on vendor payments, as FidyPay’s portal has the automated setting to do the needful. You just have to select the type of deduction valid for the invoice payments, and BOOM! The integrated tool will automatically calculate the deduction amount and pay it to the concerned authority. The final vendor payment amount will be the deducted figure, so you don’t have to run those manual calculations anymore!
4. Easy Payment Processing
With the automated payment solution for vendors, you can schedule your invoice dues to process the funds to the specified accounts without engaging your team for the entire day. You just need to set it and wait for the deduction notification on your phone! Apart from that, if you want to manually process the one-click payments, you can enable reminders to get notified when the due of any invoice is near!
5. Automated Reconciliation
Bookkeeping is also an important necessity when you are making bulk vendor payments. With FidyPay’s vendor payment solution, your payment data will be automatically synced to the central portal or the accounting tools your business uses. Thus, you can close the books 2x faster than the traditional vendor payment process.
FidyPay is Destined to Streamline Your Vendor Payment Hassle!
FidyPay is a dedicated vendor payment service provider that leverages the power of API banking to deliver seamless solutions to businesses. Through our API banking platform, businesses can streamline vendor processes and digitize payment methods by automating vendor management.
One of the key advantages of FidyPay is the ability to provide your Chartered Accountant (CA) with direct access to payment data through our vendor payment portal. Gone are the days of creating separate reports to share invoice and payment details during tax filing. Simply grant your CA authorization to access the portal, and you’re done for the entire year! However, should you still prefer to share reports, FidyPay offers a convenient feature to easily export curated vendor invoices or payment reports.
In addition to our efficient vendor payment solutions, FidyPay supports instant banking transactions, automated payment functions, and hassle-free check-in and check-out processes. As of now, our vendor payment solution is available for businesses holding accounts with ICICI, SBI, Axis, HDFC, and Yes Bank, ensuring widespread accessibility and convenience.
To delve deeper into FidyPay’s comprehensive vendor payment services, we invite you to reach out to us. Our team will be delighted to provide you with further information and demonstrate how our API banking-powered solutions can transform and optimize your business’s payment processes.