Wednesday, November 23, 2022
HomeeCommerce NewsInstant payments to help maintain a smooth workflow

Instant payments to help maintain a smooth workflow

Even before inflation and the pandemic hit the world, many small-to-medium-sized businesses were facing a crunch. The crunch was mostly in managing cash flow. One of the most time-consuming tasks is managing accounts payable workflows and paying vendors. Instant payments ease these things.

Surprisingly, almost a quarter percentage of the payments are still on paper checks. Even B2B payments are not at all simple. The workflow involves approvals, preparation, collaborations, monitoring payments, and also if suppliers are getting the funds. In such cases, instant payments techniques come to the rescue.

Even after the paper check receiving and deposition is over, there is a tedious process of taxation. On top of this, there are reconciliation and communications between accountants and bookkeepers, which is an important task.

The entire process takes a lot of time. Usually, businesses take around 10 days which is nearly 30% of the month, to complete these tasks. This a long time to wait for the money.

But SMBs need greater funds fund flows and money movement. This will facilitate not only smooth functioning but also a healthy between suppliers and buyers. Suppliers need the payment as fast as possible.

A little miss communication between suppliers and buyers can disturb the entire workflow. There are times when buyers suffer to pay their vendors in multiple ways. The problem is that different AR systems are not in alignment.

Instant payments methods solve almost all these issues. From suppliers receiving the payments instantly to saving time. Instant payments can effectively reduce time.

First things first, the work should start with decoupling the entire process. We need to bridge the gap between suppliers and buyers.

Another feature is the inconvenience of an SMB choosing to use its credit card to pay a supplier who accepts only paper checks. In such cases, we will have to focus on the convenience of both the suppliers and buyers.

There are many more crunches that come into play. And the way out of these issues is through instant payments.

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