Reconciling Multiple Payment Accounts – How Do Accounts Payable Departments Cope?
It gets very difficult for companies to manage multiple payment accounts when dealing with hundreds, or even thousands of payees. This is very common in affiliate, app monetization, advertising, and crowdsourcing networks, as well as in online marketplaces. Most companies do not have the infrastructure within their accounting departments to manage an operation as demanding as reconciling thousands of payments in multiple currencies and countries, executed through multiple bank accounts. Many times companies that do try to manage these tasks tend to fall behind on making timely payments to their payees. This can cause a myriad of issues, and if the problem persists, they run the risk of losing their affiliates, publishers, freelancers, etc. as well as future prospects due to a negative blow to their reputation.
One way to mitigate this risk is to constantly expand and grow a dedicated accounting department that can maintain and evolve with the complexities that mass payment presents. However, most companies would be wise to delegate this workload to a service that not only automates mass payouts, but is designed to integrate with multiple banking institutions, multiple payments methods, local currencies, and also handles tax compliance, and US and international blacklist (OFAC) compliance. With an integrated and automated system, companies can cut down the time required to manage payouts while eliminating human errors that accompany tasks such as uploading invoices, collecting payee tax information, proof of identity, local currency information, etc. What’s the old saying? “Work smarter, not harder?” Well, by picking the right solution to handle these important matters, it can definitely make all the difference for any company looking to maintain efficiency, ease of operation, competence, reliability and consistency.