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Processing vendor payments is one of the final steps of the purchase cycle. Generally, large enterprises process vendor payments through a third-party service provider whereas small businesses struggle to make payments to vendors on time.
Apart from this, TDS is applicable on invoices depending on the type of industry. Businesses simply don’t want to deal with the regulatory aspects of making payments to vendors. This is quite understandable since each business makes about 25 to 30 payments every month.
But, we wanted to shed some light on why businesses should automate their vendor payments instead of outsourcing the process. So, if you’re on the lookout for a way to simplify and automate your payments process, look no further.
Outsourcing: The affliction of privacy and security
When you outsource your payments to an agency, you end up giving them access to sensitive financial information. And, depending on the industry of your business, you may have a specific set of protocols to follow with regard to outsourcing.
It is really important that your service provider lives up to your privacy and security standards.
You also have to ensure that the agency has no security breaches, or your information won’t fall into unauthorised hands.
Automation: Highly secure vendor payments
Automating your payments process means you no longer have to worry about an external party getting their hands on your data. All details about the invoices you have to pay are within your system.
The biggest plus is, you don’t have to manually make any calculations or hire a big team to take care of the process. You can simply put your vendor payments on autopilot.
[ Suggested reading: Vendor Payments Automation Guide for Businesses ]
Outsourcing: Little control over your vendor payments
Outsourcing payments to vendors results in a high dependency upon the agency. You don’t really get to see the bookkeeping methods they use. You’ll also be in the dark about the way they carry out the process.
Also, the agency won’t go out of their way to get your work done in time, especially if they’re in crisis. Let’s face it. The vendor payments process is a time-bound activity.
Automation: Vendor payments in your full control
The biggest advantage of keeping your payments process in-house is that it gives you full control over the process. The system or team in question is always accessible to you. Further, making any changes to your process will be really simple.
Further, automating the process results in very little manual intervention. You don’t have to worry about making calculations or sticking by the regulations.
Outsourcing: Duplication and other errors
If the agency you’re working with uses spreadsheets, there’s a high chance for data entry errors. Spreadsheets can get duplicated, and with multiple people working on them, there’s a bigger room for mishaps. This ties back to the security concerns we talked about, along with unforeseen mistakes.
Also, the agency you’re partnered with works with several businesses just like you. You cannot discount the possibility of data loss, incorrect formatting, errors in calculation, and more.
Automation: Error-free vendor payments
When you automate your payments process, you don’t have to worry about multiple platforms or touchpoints. You can simply upload all your invoices and let the system do its thing. Upon finishing the process, you can execute payments in one go.
Also, you can always verify the details of the invoices in your system because everything is in your control.
[ Also read: How Businesses can Simplify Payouts ]
Vendor payments on autopilot – RazorpayX
We believe that no financial operations should be difficult. With our business banking platform, we’re trying to simplify every aspect of money movement.
RazorpayX Vendor Payments is just what you need to ensure your payments are error-free, quick, and easy.
- A smart and highly-responsive dashboard takes the place of several spreadsheets
- Our intelligent OCR reads the uploaded invoices and populates the details automatically. So, no more data-entry mishaps
- Your payments will be made on time because we send you timely reminders
- You can carry out your entire process on one single platform, where everything is at your fingertips
- No more cooling period or banking hours. Add your vendor details, start transacting immediately
- A big plus: your payments go through instantly
You never have to worry about making TDS calculations ever again! RazorpayX Vendor Payments automatically deducts TDS from the invoices and pays the government on your behalf.
Experience error-free and seamless vendor payments like never before!