Managing Common Pain Points of Your Accounts Payable Payment Platforms

In today's fast-paced business environment, efficient payment platforms are crucial for maintaining smooth operations and fostering positive relationships with vendors and suppliers. Yet, many businesses grapple with a range of challenges when using current payment platforms. We’re highlighting the top five pain points commonly associated with these systems. To pinpoint the biggest sources of friction, we consulted 20+ client accounts payable (AP) teams. These are the prevalent themes that emerged from our discussions: 

1. The Hassle of Multiple Log-ins, Platforms, and Vendor Relationships 

Managing multiple log-in screens and platforms can be a significant hassle. Each platform might have its own log-in credentials, user interface, procedures, and license fees, making it cumbersome and costly. Additionally, maintaining numerous vendor relationships further complicates the workflow, as it requires consistent monitoring and management to ensure all parties are aligned.  

Way Forward: An Integrated Platform - A more unified system can streamline processes by consolidating all payment and procurement related activities into one platform. This approach enhances workflow efficiency, reduces the cognitive load on employees, and minimizes the likelihood of errors.

2. Complex ERP Integrations 

Aligning payment platforms with enterprise resource planning (ERP) systems is often a complex task. Ensuring seamless data flow between systems is critical, but it often comes with potential challenges related to reporting and payment statuses. Many businesses find themselves needing to hire consultants or third-party services to support one-time or ongoing integrations, adding to the overall complexity and cost. 

Way Forward: Seamless Integration with Major ERP Systems, such as QuickBooks Online and NetSuite - To minimize complexity and reduce additional steps, look for payment platforms that offer seamless integration with major ERP systems. Real-time updates are essential, ensuring that all data is accurate and up-to-date, which in turn reduces the likelihood of errors and the need for external support. 

3. Unnecessary Supplier Inquiries and Management Burden

Suppliers frequently inquire about the status of their payments, which places a recurring burden on management to handle these queries. This not only impacts supplier relationships but also increases the administrative workload for the AP team. 

Way Forward: Dedicated Supplier Assistance Teams - Platforms that provide a dedicated supplier on-boarding team and help-desk can take the burden off of AP professionals. These teams can provide suppliers with timely and accurate information, reducing the frequency of inquiries and fostering better supplier relationships to help avoid credit holds. 

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4. Uncertainty Due to Lack of Real-Time Payment Status 

Having clear and predictable payment timelines is essential for effective cash flow management and financial planning. However, many businesses struggle with payment platforms that do not offer real-time status updates, leading to uncertainty and potential disruptions. 

Way Forward: Real-Time Status Updates and Transparent Timelines - Look for payment platforms that provide real-time status updates and transparent timelines, allowing businesses to track payments accurately. This feature enhances cash flow management and financial planning by providing clarity and predictability. 

5. Insufficient Support and Hidden Costs 

The lack of dedicated support can be a significant drawback, especially when urgent issues need resolution. Premium support fees can further exacerbate this problem, driving up the overall cost of the platform. Additionally, hidden costs such as user fees, ERP integration fees, and payment processing fees can accumulate quickly, complicating budget management and increasing the total cost of ownership. 

Way Forward: Transparent Costs with Inclusive Support - Seek payment platforms that include comprehensive support and integrations in their standard service package. This approach not only ensures timely issue resolution without extra charges but also helps in managing and forecasting costs more effectively by minimizing hidden fees. 

Businesses must carefully evaluate their platforms to ensure they support a seamless payment process. Prendio is committed to providing solutions that streamline payments and enhance overall efficiency.