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Our modern business world loves things that are quick, efficient, and flexible, and that includes how we deal with finances. Nowadays, being efficient isn’t just a good thing—it’s a must-have. Whether you’re running a small business or a larger accounting firm, everyone is starting to see that it’s time to say goodbye to old-school, manual ways of handling business payments. Instead, we’re moving towards using smart, tech-friendly solutions that make everything smoother and more efficient.
At the core of any successful business, there’s a crucial component called Accounts Payable (AP), and modern bill pay solutions emerge as the key to help your business’s AP reach its full potential. These solutions play a pivotal role in streamlining and automating the intricate process of settling invoices and managing transactions. They not only promise heightened efficiency but also ensure increased accuracy in handling financial affairs. In this blog, we’ll share 9 expert tips to help you get started with bill pay for your small business or as part of your accounting firm services.
9 expert tips before you start with bill pay
Software selection
Selecting the right bill pay software is crucial for both business owners and accounting firms. For business owners, it’s about finding a tool that simplifies the payment process, saving time and ensuring accuracy in financial tasks. Accounting firms, on the other hand, need software that can handle different client needs while keeping things running smoothly. Some businesses like to pay weekly; others have more complicated processes. The key is finding software that can handle both complex tasks and make everyday tasks simple for everyone involved.
And let’s not forget how important it is for the software to be user-friendly. The easier it is to use, the more efficient and satisfied everyone will be. It’s also important for the software to integrate well with accounting software platforms for a smooth workflow. Ultimately, the chosen platform should streamline financial operations, making life easier for everyone involved.
Platform costs
When thinking about using bill pay software, it’s important to look at how much it’s going to cost. For most platforms, there’s a fixed monthly fee and a cost for each person using it. But with bill pay, it gets a bit trickier because you also pay for each transaction, and if you need to rush a payment, that can cost even more. For accounting firms used to paying software costs, dealing with these extra charges might need some extra thought.
Here’s where Forwardly comes in. It keeps things simple with no monthly subscription fee, no charges for additional users, and for each transaction received, it’s only 1% plus $1, capped at $10. Sending payments is always free. This straightforward approach makes Forwardly a smart choice for business owners and accounting firms who want to keep things clear and affordable.
Workflow approval process
When it comes to bill payment, understanding how approvals work is crucial for business owners and accounting firms. The approval process can be tricky with questions like who approves specific types of bills, whether it’s a single person or a team, and if approvals depend on others. Dollar thresholds can add another layer of complication.
For those used to the simplicity of physical offices, going digital can reveal unexpected challenges in managing approvals. That’s why it’s crucial to map out the approval workflow in advance, making sure everyone understands their role and avoiding unexpected complexities. Transparency and accountability are key, ensuring business owners know who’s giving the nod and providing accounting firms with a clear path to trace approvals, making the entire bill pay process smoother and more efficient.
Payment methods and vendor preferences
Deciding how to pay bills is a significant decision for both businesses and accountants, especially considering the prevailing payment trends in 2024. These days, everyone wants things super-fast, so instant payments are becoming the norm. It’s not just about wire transfers or paper checks anymore; it’s about getting money from one place to another right away. Talking to vendors about how they like to get paid is crucial. For small businesses and accountants, figuring this out from the start avoids any later confusion. It’s about keeping up with the speedy changes in how we handle payments, making sure everyone’s happy with how transactions happen.
Funds availability
Ensuring there’s enough money in the bank before paying bills is a big responsibility. At your accounting firm, if a client trusts you to handle their bills, you need to be on top of whether there’s cash to cover them. This becomes even more critical for small businesses juggling various payments and working on tight budgets. Monitoring cash flow becomes a project of its own, requiring detailed knowledge of every outgoing payment, from credit card payments to confusing batched ACH transfers. Using Forwardly adds an extra layer of ease to this task. You’ll know right away if the bank balance can cover a payment before taking any financial steps. This double-check ensures that the cash is ready, avoiding any unexpected bumps and contributing to a seamless financial process.
Frequency and timing of paying bills
Deciding when and how often to pay bills isn’t as easy as setting a schedule. Are you aiming for a weekly payment cycle? If so, what does that mean in terms of the entire process? From bill entry to internal and client approvals, each step involves its own timeline. For instance, if Monday is bill pay day, does that mean the team does everything on that same day or on different days leading up to it?
The challenge is to make sure everyone knows the plan to avoid confusion. You need to make sure clients understand when payments will happen and how that aligns with when invoices are received. A clear process, maybe with scheduled time slots for bill entries and internal approvals, helps maintain order. Some platforms even allow for automatic payments post-approval, simplifying the timing challenges. This level of detail ensures a smooth and transparent payment schedule for everyone involved.
Team member availability
Think about what happens when team members, especially those who give the final nod, can’t be there—maybe they’re on vacation or dealing with unexpected events. This foresight involves identifying potential gaps within the internal team and client-side approvers. Stressing the importance of a contingency plan is crucial.
Establishing backup approvers, outlining alternative workflows, and ensuring effective communication protocols become indispensable. This means having someone else who can step in, knowing what to do differently if the usual approver isn’t around. You need to have a Plan B to keep things going without a hitch. You need to make sure the bill pay process stays reliable for your small business or accounting firm.
Setting up bills at the customer’s domain
Making sure bills reach the right place efficiently is important for small businesses and accounting firms. Here’s a smart trick: set up a dedicated email address like accountspayable@yourbusiness.com. This becomes a one-stop-shop for all your bills. If you’re not keen on creating new emails for each vendor, no worries! You can create email rules to forward invoices to your special accounts payable inbox. This approach not only ensures a more organized bill management system but also minimizes the risk of missing important invoices. As an accounting firm, managing this setup for your clients brings them peace of mind and makes dealing with bills a whole lot simpler.
Handling payment failures
So, you’ve hit send on those payments, but what happens when things don’t go as planned? Handling payment failures is a critical aspect of bill pay services. If a payment bounces back or encounters issues, who takes charge? This is where having a well-thought-out strategy comes into play. Accounting firms should establish clear processes for dealing with payment hiccups. Is it the vendor’s responsibility to reach out, or does your team handle it? Swift communication and resolution are key to maintaining trust. Ensuring that payment issues are promptly addressed not only prevents disruptions in vendor relationships but also reflects positively on your bill pay service. By being proactive and having a solid plan for these situations, you’ll build confidence with your clients and contribute to a seamless financial process.
Effortless bill pay with Forwardly
Prepare for bill pay with confidence, and we’ve got the perfect solution for you – Forwardly! Transform your accounts payable process with our platform, guaranteeing a seamless and transparent experience. Enjoy easy approval workflows, real-time financial insights, and lightning-fast instant payments – all at an unbeatable cost of 1% (minimum $1, maximum $10 per transaction), completed in 60 seconds. Forwardly keeps you informed with real-time updates on your bank balance, ensuring you’re always in control of your finances. Experience swift and seamless transfers across banks, enabling instant settlements and effortless reconciliation within seconds.
We’ve integrated securely with QuickBooks Online and Xero, simplifying your reconciliation process. Experience the convenience of a user-friendly interface with no hidden costs – no monthly fees or platform charges. Elevate your client-focused approach and ensure long-term success by signing up with Forwardly today. Transform the way you handle bill payments effortlessly!
