3 minutes by Thomas Martchek
Are you a small business owner or a landlord that spends time sifting through supplier invoices? Is this really what you love about your business?
Managing suppliers can be a difficult task. Not only do you have to worry about the quality of their product, but you also need to make sure that they are paid on time and in full. Thankfully, there is a better way! Automated transfers offer a better way for businesses to manage supplier payments. This blog post will discuss why automated transfers are so beneficial and how they work in detail.
How Automated Transfers Work
Automated transfers need to be set up with your suppliers based on a quantity or fixed amount. If you are purchasing a fixed amount or fixed service, then scheduling an automated transfer is simple through your banking software or a subscription management tool.
However, if your purchases are variable, setting a simple fixed transfer with automation can be tricky but not impossible. Either way, after you set the transfer, you can focus on quality and get back to working on your business.
For suppliers that provide a per unit or variable service to your business, paying them with automation might be risky. If the quality or amount is wrong, your business could be left without product or service AND the payment. With that in mind, it's important to connect your automated transfer directly to the invoice and set up an alert to catch unusual changes. Imagine autopay but with an alert if invoices were too high.
Here's How to Upgrade
Automated transfers for variable purchases from suppliers can be set up in subscription management tools. For households and families, WellPaid allows users to send automated transfers between roommates or families to automatically split a subscription cost.
Similarly, for businesses, setting up a direct debit or vaulting a card can simplify the payment process, though you need to have monitoring in place to stay protected.
Services like Plooto are great for monitoring automated transfers with suppliers to make sure you don't overpay. Similarly, as many small businesses are really just people, you can still use cheap financial tools like WellPaid to manage your accounts to identify subscriptions, track spending, set alerts, and automate transfers.
To avoid any unexpected surprises, alerts and notifications can be quickly set up in these services. Instead of managing and paying all suppliers one by one, efficient business owners can simply look into suppliers that charge more than expected without needing to waste time on suppliers working as expected.
Spending 100% of precious time on the problems instead of well-operating pieces is what separates successful businesses from the struggling.
Things to Remember
Automated transfers also help cut down on time spent managing supplier accounts because everything happens online without needing to manage every step. Oversight of the billing process is still possible, but did you really start a business to manually enter transfer amounts or manage invoices from suppliers?
Managing suppliers can be a difficult task, but automated transfers offer a better way for businesses to manage supplier payments. Now that you know how to automate transfers, we hope you consider automating your supplier management.