How to make instant vendor payments on Open

Managing multiple aspects of your supply chain efficiently is a vital part of any successful business. This includes finding vendors and negotiating for the best prices. To do this, you need to partner up with different types of vendors to facilitate the delivery of goods or services to your final customers.

Managing vendor relationships effectively is one of the most crucial things for any business. You should always be mindful of making timely payments to your vendors. Making late payments damages your relationship & goodwill and also affects the cash flow of the business.

The mainstream vendor payments include office amenities, products, SaaS subscriptions, etc.

The challenges

There are quite a few challenges for businesses when it comes to making vendor payments. Let’s dive deeper into some of the prominent ones faced by businesses when it comes to making vendor payments using the traditional methods -

1. Netbanking

Businesses widely prefer Net banking to make vendor payments. It is mandatory to add the recipients and wait until banks approve them as beneficiaries to make payments. This continues to be one of the major drawbacks of using net banking to make payments to your vendors.

The cooling period can range from 30 minutes to 24 hours. Adding to this, you can only transfer a limited amount of money which varies from bank to bank.

2. Cheque

Some businesses continue to make payments to their vendors through cheques. Well, it happens quite frequently that one makes errors while filling up details in a cheque. After all, “to err is human”.

In addition to this, you need to be physically present to make vendor payments using a cheque, since you have to put signatures on it. Most business owners don’t have time or can’t make themselves available to physically sign every cheque to make vendor payments.

3. Manual reconciliation

Doing manual reconciliation is a challenging task. For accounting purposes, it is important for any business to properly reconcile payments made by them. But doing it manually requires you to spend a whole lot of time and resources to get the job done.

Also, manual reconciliation can lead to random errors that might have repercussions. Tracking payments to the vendor and the time when it was done will become quite draining.

Make seamless vendor payments with Open

If you are still using traditional methods to make vendor payments and aren’t leveraging technology, you are losing out on the time and energy that could be spent on core issues like scaling your business.

Let’s look at how Open’s Vendor Payment solutions can give you this time & energy back.

Once you sign up on Open, all you have to do is to upload an excel sheet that has just 4 basic details (Name, Account number, IFSC Code, and Amount to be transferred) of your vendors. And right after this you just have to click on Save & Send. That’s it!

You will be amazed to learn that there is no cooling period here, and hence you can make instant payments without having to wait for an hour or a day.

Apart from making smooth vendor payments, you can also -

• Seamlessly create and send bills, payment receipts, debit notes, etc.
• Track & view all aged payables with filter options, ‘Vendor’ or ‘Bill’ tag
• Connect any of your existing bank accounts with Open & make direct payouts

But wait! There’s more.

Open helps businesses like yours to make TDS payments for your company and also automate the same. Here’s how you do it in just 5 steps -

1. Click on the ‘create a bill’ option from your Open dashboard
2. Now, select a vendor from the drop-down list below
3. Choose an accounting head and fill in other necessary details such as GST percentage, price, discount, etc.
4. Toggle on the ‘deduct TDS’ button and choose a TDS category (it will help auto categorize items over the period)
5. Now, enter the TDS percentage and then click on the ‘Save and pay now’ button on the top right section of your screen

Open — the easiest way to make instant Vendor payments

Making timely vendor payment shouldn’t be a challenge for your business and you should not spend your valuable time on repetitive processes. While you struggle with your bills and invoices, your competitors on the other hand would be replacing all such manual processes with technology and automation. It is time to say goodbye to all manual financial management processes. Now, sign up on Open & start managing your finances easily.