Bill Pay Software for B2B Bill Management
Whether you’re looking to pay on a lease, gather more inventory, or settle taxes, it’s easiest to have an online bill pay system in place. It streamlines operations, ensures less need for data entry, and helps a business avoid late fees. Here are a few things you should know about these platforms:
What is a Bill Pay Service?
Bill pay is a service that enables a person or business to pay anyone virtually using internet banking or a mobile bank account. You will determine who gets paid, when, and how much. An end-user also establishes which accounts the funds will be pulled from. It’s both a safe and secure way of ensuring everyone gets paid in a timely manner.
In addition to paying your bills, these service providers offer features to help a small business stay better organized and more efficient with managing monies. Additional features of a bill payment service include:
- E-bill aggregation: Have electronic copies of all your bills sent directly to the accounting software and circumvent your email inbox. This will centralize all the data into one simple dashboard.
- Automated alerts: For every biller set up in the system, a business can create custom alerts to inform when a bill has arrived or needs to be paid. It’s a handy way to remind you of due dates. This not only ensures bills are paid on time, but it also eliminates late fees and boosts your credit score.
- Multiple Accounts: A bill pay service allows you to pay a bill from multiple bank accounts like checking, savings, or a money market deposit account.
- History: Check out all pending online payments and the history for every biller in the system.
- Automatic payments: For any recurring bills you have or those you pay on a regular basis, you can automate the payment process. Just always know your balance so you don’t overdraft with automation.
How do Electronic Payments Work?
It’s pretty easy to make an electronic transfer to pay bills. Simply enter the person’s name or company and the platform will transmit funds electronically. If that person cannot receive funds this way, the online payment software will print out a paper check and mail it (usually at no additional cost). Since paper checks typically take 3 to 5 business days to arrive, the bill pay system will prompt you to enter the day you want the check to be received.
Larger companies (think insurers and lenders) are set up to process electronic payments so funds are received within a day or two when using online bill pay. A user can receive, view, and pay an unlimited number of bills for up to a year in advance of the due dates. All through a single site. These financial institutions eliminate the need for a checkbook and double down on security.
How Bill Payment Software Helps Your Budget
There is a multitude of reasons why a bill pay service can pad your cash flow and help your budget. There can be time and stress in the monthly bill-paying process and if you own a busy company, this is something that needs to be automated. Here are a few of the reasons why it can help you draw revenue today:
Many accounts (like revolving credit card accounts) will set a minimum payment, but allow you to pay the whole balance if you so choose. A common mistake people make, however, is to wait until the day you pay to decide the amount. Too little of a payment can incur fees, but something impulsively generous will also mess up the monthly cash flow. It’s hard to carefully plan a monthly budget when these things are up in the air. It can cause a problem later on if emergency funds are required, like for car repairs or healthcare.
Automating recurring payments that align with a monthly budget ensures there are never any surprises. You can pay more than the minimum to get ahead, just set the monthly amount in advance and stick to it. Using bill pay software puts a check on making snap decisions that could hurt business and your budget down the road. The best strategy is to establish a spending plan and think about where funds are allocated before you have cash in hand to spend. It’s simply smart planning.
Bill paying platforms ease the heavy load of paperwork, especially during tax time. Instead of rooting through files and desks, all of your records sit in a central repository. There’s no need to spend hours digging up receipts for deductions, like medical and education. Everything you need is in the system. The software will add up and categorize your payments for an entire year. If you integrate text preparation software, all numbers will link automatically.
Forget About Fees
One of the greatest benefits to your budget when using an online bill pay system is that the fees are low and many services are simply free. Additionally, you no longer have to worry about third-party factors like a check getting lost in the mail and late fees tacked on. When you automate bill payments, you set the date and amount well ahead of time. Some platforms will enable you to set payments up to a year in advance. Many software platforms will guarantee on-time payment so you never need to worry about extra fees again.
Money management becomes much easier when you can put a lot of it on autopilot. Finance is about numbers, so there is not much creativity or analytics needed here. Bill pay software platforms are simple systems designed to respond to certain events. An e-bill comes in and processing begins. The invoice is not sitting, buried on someone’s desk. Automation removes most human error and creates a streamlined system of virtual checks and balances.
How to Get Started Using Online Bill Pay
Once you are ready to start paying bills online, check to first see if your bank or credit union offers it. If not, you may want to consider switching to a high-yield FDIC-insured checking account that comes with free online bill pay (and subsequently charges no fees). Once you’ve created an online banking account, most sites will then allow you to register for the bill pay service.
You can then start populating your database with contacts and vendors who you will need to transact with. To set them up, it requires data like:
- Mailing address
- Company name
- Account number
There is no need to enter all payees at once. Just enter each bill (or e-bill) as you get them. Once the data is saved in the program, all you have to do is input the date and amount of payment going forward.
Online bill payment software is a back-office tool that can’t be beaten. Not only will it ensure you are paying everything on time, it strengthens vendor relationships and tightens up your financial ship.