A Guide to Automated Vendor Payouts for Businesses
There is a term almost every business owner has on his/her fingertips… can you guess what it is?
The right answer is… Vendor Payouts!
Vendor Payouts are one of the key modes of funds movement in business operations. Each business makes use of goods or services be it raw material, IT purchases or consultancy services. In many cases, businesses have a system set up to ensure the compilation and tracking of vendor invoices and their due dates. Following which the same ensures timely payment disbursal.
But…
Yes, there’s a ‘but.’
Your system might not be as infallible as you think.
Vendor Payouts
Vendor payouts, as the name suggests is the procedure of paying your business’ partner vendors for the goods and services provided by them. Businesses need to have an organized way of managing vendor payouts. This not only helps in establishing a strong relationship with them but also ensures you pay off your liabilities in time. This leads to smooth business operations.
Manual Vendor Payouts: Is There a Problem?
In general, businesses tend to make several vendor payouts on a monthly basis. Typically, the entire manual vendor payout process is extremely tedious and there can be many problems that arise solely because of the manual work involved. Some of these are:
Data Entry
Considering the number of invoices a business receives in a month, manual data entry is one of the areas exposed to major manual errors. Entering data in a sheet is not only time consuming, but it also comes attached with risks of mishaps. A single mistake at any point in the process can be a burden on a company.
Processing is Time Consuming
It can be slow to process vendor payouts especially if you have new vendors. You need to start from scratch — adding them as a beneficiary, wait for the cooling period to end, and then making a payment. On top of that, a lot of numbers bring a lot of errors that might lead to delayed or wrong payments.
Manual Reconciliation can be Tedious
Businesses have to constantly make manual checks on the due dates of invoices or regularly reconcile accounts of the payments received from vendors. This can be not just a long and time-consuming process, but also an error/fraud-prone process with less real-time visibility and some guess work involved.
Excel Sheets can be Complicated
Even if you are working with around just 15 to 20 invoices, the number will grow as your business does. Maintaining sheets as records work well when you have a limited number of vendors. However, once your vendors start growing, sheets start to get complicated.
Paytm Payouts to the Rescue!
A robust corporate solution, Paytm Payouts, was introduced to simplify your vendor payouts. You can now automate the tracking and payment of your vendor invoices, validate their bank account details, initiate bulk payouts and reconcile smoothly.
Time to Add Simplicity to Your Vendor Payouts
- Easy signup.
- 24X7 payments, make payments from anywhere, anytime- even on bank holidays and weekends.
- Opt for any payment mode, NEFT, RTGS, IMPS, UPI, Paytm Wallets. Funds can then be transferred to Bank Accounts, Utility Payments, Digital Gold, etc.
- 99.5% success rate* of transactions, with in-house technology.
- Easy reconciliation of vendor payouts with strong API integrations, real-time updates, and easy availability of reports.
- Add users to ease the custom approval flow including maker-checker.
- Instantly add and verify beneficiary accounts.
- Automate and schedule payments.
It’s time for your business to open doors to error-free and smooth vendor payouts.
