Payments are delayed unnecessarily if you only accept payment by check. Checks can delay payments for weeks, increase costs and reduce cash flow. Checks cause delays throughout the payment transaction:
- Issuing checks – Many AP departments issue checks weekly, biweekly or monthly. Miss the cutoff and your payment will wait for the next check run. Remote work can add additional problems and delays.
- Mail delays – Mailing a check can add a week or more to payment delays. The pandemic has created additional delays in post office operations which have added to delays in delivering payments by check.
- Receiving checks – Check processing can add days to payment delays. Weekends and holidays exacerbate delays. Pandemic lockdowns and remote work have created additional delays.
Delays caused by checks can be reduced by automated AR solutions.
An online self-service portal can reduce delays caused by checks. Customer portals have features which benefit your customers and company including:
- Customer Self-Service – Customers can make payments, manage their profiles, and obtain copies of documents, check information and report disputes.
- Easy Access with Magic Link – A secure authorization system without passwords that gives customers easy access to your portal.
- Payment Options – You can offer payment via ACH and credit card, and provide for recurring payments to make paying easy.
- Cloud-Based Solution – Easy access whether the customer works at home or the office.
An online customer portal provides convenient and flexible self-service and reduces delays caused by payment by check.
On-time payment issues are a less of a problem for companies with digital solutions. Accounts receivable and accounts payable cloud-based solutions with customer/vendor portals and digital processes keep vendors and customers connected whether they work remotely or not.
Digital solutions can reduce or eliminate late payments. They minimize the issues that can cause delays in processing payments, resulting in increased efficiency, reduced costs, and increased profits and cash flow.
With a connected accounting solution for your accounts receivable and accounts payable teams to coordinate work with customers and vendors, you can go digital and enjoy the benefits of office automation.
Lockstep, a leader in cloud-based connected accounting solutions, can help you boost productivity and optimize cash flow with:
- Digital Onboarding – Collect master data directly from your customers and vendors
- Accounting Inbox – Make it easy to divvy up work and track progress
- Smart Automation – Automate menial task with accounting integration
- Online Accounts – Give customers and vendors online access to their accounts
Lockstep is an experienced software partner that can help you increase efficiency and accelerate cash flow.
If you would like to learn more about how you can benefit from connected accounting solutions, please contact Lockstep at www.lockstep.io