Every business today is jumping on the digital bandwagon. Digitisation, or the shift from analogue to digital is inevitable not just for emerging enterprises but also for the established ones.
Digitisation requires embracing technology to move from the old to the new. And if there is one business function that should have undergone this change yesterday, it is the process of vendor payouts.
The term refers to payments made by merchants to their various stakeholders through multiple payment modes. Vendor invoicing is the first step towards timely and hassle-free vendor payouts.
Validating invoices manually from vendors either physically or by email is an outdated task. It’s error-prone and time-consuming. Additionally, re-entering and reconciling the data afterwards to process those invoices is an added burden on organisations.
Before understanding how digitising vendor payouts can benefit your business, let’s understand why manual payouts are not a sustainable option anymore.
Drawbacks of manual vendor payouts
Typically, the entire manual vendor payout process is extremely tedious. There can be many problems that arise solely because of the work involved. Some of these are:
Data entry: Entering data in a sheet is not only a laborious task but also comes with risks of manual errors. A single mistake at any point in the process can lead to miscalculations and business losses.
Processing time: When you onboard new vendors, you need to start from scratch – adding them as beneficiaries, waiting for the cooling period to end, and then making a payment. The processing time can mean unnecessary waiting periods and hence delays in payouts.
Manual reconciliation: This is a long manual process, demanding hours of data entry every-day. There are often discrepancies, human errors and even some guesswork involved. Businesses have to then spend additional time correcting the mistakes.
Complicated sheets: Maintaining sheets as records work well when you have a limited number of vendors. However, once they start growing, sheets become complex and are simply not a feasible way to keep records.
It is therefore important to move from manual management to a digital one-stop solution for all your vendor invoicing needs.
The Paytm Payouts vendor invoice module automates the process to optimise and simplify creating, managing, monitoring and processing of invoices.
What is Paytm Payouts vendor invoice system
The vendor invoice system is designed to ensure reduced invoice-processing time and minimises manual data input apart from a number of other advantages for your business. You can now seamlessly schedule payouts 24*7 and through any payment mode.
Here’s a look at the features of the vendor invoice module’s robust dashboard.
- Managing invoices – Add invoices in bulk and keep all your vendor invoices in one place to make them accessible and searchable on the go
- Providing visibility – View all your payables in a single panel, with reminders of upcoming payments. You can also easily search and pull out previous invoices and payments
- Ensuring approvals – The module offers an approval system with automated assignment, tracking, reminder, and notification process to ensure timely payments
- Simplifying payments – All payout options from wallets and bank transfers to UPI are covered in Paytm Payouts. Pay invoices in bulk or schedule the payments with a no cool-off period
- Automating reconciliations – The dashboard helps you manage, view, search, & export all your invoices payments. This means you never lose track of your invoices – even those that you have archived for over years
What does Paytm Payout vendor invoicing bring to your business
The vendor invoicing module is a single system for all payout needs including advanced and partial payments with real-time sync. Here’s how Paytm Payouts can help and simplify your business.
Easy to use: Paytm Payout streamlines vendor invoicing so that your team can focus on processes that the software cannot manage. Merchants can save hours by easily delegating most manual tasks to the software.
Well-knit approval system: Approvals are a big part of any organisation. Employees are constantly sending requests for approval based on allowances and other incentives. This process is delayed without a proper solution in place.
The Paytm Payouts dashboard comes with a built-in approvals system. Merchants can create a custom approval workflow to automate the approval chain.
Reduced errors: Automation reduces the chance for human error to ensure consistency, adherence to processes, compliance, and increased security by eliminating mistakes that lead to misconfigured systems.
With less manual keying of data and automatic data fetching, you vastly reduce the scope of manual errors and discrepancies while managing the vendor invoices.
Detailed reports: Small businesses often find themselves preparing business reports in the process of evaluating and planning their long-term performance.
Business reports are a powerful tool if used correctly. With Paytm Payouts, the system automatically prepares these precise and customised reports to help you analyse the data.
Multiple payment modes: In today’s payment environment, vendors prefer to have a range of choices to accept their payments hence businesses need multiple payment modes.
With Paytm Payouts, you can opt for any payment mode, including NEFT, RTGS, IMPS, UPI, Paytm Wallets, and more. You vendors can thus pay the invoices through their most convenient method of payment.
Easy reconciliation: In bank reconciliation, the bank statement balance is reconciled with the balance in the client’s books of accounts to tally the two, where the calculated bank balance should be equal to the book bank balance.
With Paytm Payout’s robust dashboard it is much simpler where you record all your payments to easily and automatically reconcile them in one place.
Better resource planning: A good resource plan (which are responsible for outlining all of the equipment, finances, personnel, time, etc., required to complete a specific task) are necessary for any business looking to operate seamlessly.
Since Paytm Payouts allows you to do away with so many manual tasks, you can work towards the most optimum utilisation of your resources.
Vendor payouts are one of the critical modes of fund movement in business operations. Apart from disbursing funds on time, they secure and protect your payment details in one place. Scheduled vendor payouts save time, costs and relieve the business of payment-related inconveniences.
With Paytm Payouts, you can avail all the above-mentioned benefits and make seamless payments to your vendors instantly. Digitise your vendor invoicing and explore the true potential of digital transformation.