How payment automation strategically completes spend management
- Introduction
- The missing link in spend management: payment automation
- Five advantages of payment automation
- AP automation vs. payment automation: what’s the difference?
- AP and payment automation: better together
- Reducing fraud and payment errors
- Understand how to become a perfect payer
- The smart approach: automate AP and payments together
Hear what's covered in this article:
Spend management is more than tracking expenses—it’s about seeing every dollar, making it work smarter, and keeping your organization’s cash flow under total control. Yet, many businesses make a critical mistake: they automate accounts payable (AP) but still rely on manual vendor payments.
Here’s the kicker. Without payment automation, companies face:
- Missed rebates and discounts due to payment delays
- Increased risk of fraud from unauthorized or duplicate payments
- High processing costs from manual approvals and check payments
- Limited visibility into real-time cash flow
To truly optimize spend management, AP and payments should be automated together. Here’s why.
The missing link in spend management: payment automation
Plenty of companies have some form of automated invoice processing, but when it comes to payments, it’s still the Wild West (manually done). Writing checks, juggling ACH transfers, or swiping corporate cards might get the job done, but without automation, you’re inviting inefficiencies, risks, and sneaky hidden costs to the party.
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Higher costs:
Paper checks and bank fees burn more cash with payment processing expenses. -
Risk of fraud:
34% of AP departments reported a B2B payment fraud attack in the past year.
(Source: Ardent Partners) -
Limited visibility:
Manual payments leave you guessing when it comes to cash flow and forecasting. -
Errors & inefficiencies:
Duplicate payments, missed deadlines, and approval bottlenecks are common headaches without automation.
Manual payments are a thorn in the side of many finance professionals. Luckily, automation is the best medicine for making supplier payments a painless process. Keep reading to learn the advantages of payment automation.
Five advantages of payment automation
On the other hand, automating vendor payments provides several advantages, including:
Increased efficiency
No more juggling multiple payment routines–less AP workload, more strategy (or coffee) time.
Stronger financial oversight
Enhances visibility into payment status, due dates, and cash flow.
Fraud prevention
Built-in security controls prevent unauthorized transactions and duplicate payments.
Cost savings
Ditching paper checks for digital payments lowers processing costs and prevents errors.
Supplier satisfaction
Faster, automated payments keep vendors happy–which can lead to better relationships and terms.
AP automation vs. payment automation: what’s the difference?
The biggest difference between AP automation and payment automation is that AP automation helps process and approve invoices, while payment automation takes care of actually sending the payments.
| Feature | AP Automation | Payment Automation |
|---|---|---|
| Function | Processes invoices | Executes payments |
| Main Benefit | Speeds up approvals, reduces errors | Reduces payment costs, improves payment times |
| Fraud Prevention | Prevents duplicate invoices | Prevents unauthorized transactions |
AP and payment automation: better together
Automating AP but skipping payment automation is like peanut butter without jelly—sure, it works, but it’s not reaching its full potential. AP automation is great for tackling invoices, but it’s only half the battle. Add payment automation, and you have a dynamic duo that gets invoices processed faster, vendors get paid quicker (and are happier), and you reap the rewards. Why settle for good when you can have great?
Benefits of integrating AP and payments automation:
Streamline invoice-to-pay workflows—no manual handoffs, no delays.
Improve cash flow visibility—real-time insights optimize working capital.
Reduce fraud and compliance risks—secure, automated payment execution prevents unauthorized transactions.
Lower costs—eliminate manual processing fees and take advantage of early payment discounts.
Reducing fraud and payment errors
Fraud and human error are among the biggest risks in manual payment processes. Common fraud tactics include duplicate invoices, unauthorized vendor payments, and check fraud. Automating payments adds multiple layers of security, including:
Digital audit trails ensure complete transaction visibility.
Automated risk-scoring flags unusual or duplicate payments.
Encrypted payment processing protects sensitive financial data.
Understand how to become a perfect payer with accounts payable and payment automation software, so you can achieve ROI and make your suppliers happy with on-time payments.
The smart approach: automate AP and payments together
The days of juggling manual payments are as old as fax machines. Sticking to old-school methods means inefficiencies, missed savings, and security risks. If you want the best for your business, remove chaos by implementing both AP and payments automation—turning clunky financial workflows into a seamless process.
Medius Pay connects AP and payments, streamlining the invoice-to-pay process with automation that:
- Gets rid of manual handoffs and outdated payment methods.
- Strengthens fraud prevention with built-in security controls.
- Keeps you compliant with automated audit trails and tracking.
- Increases ROI by streamlining the entire AP-to-payment cycle.
Consider a fully integrated approach if you’re looking for a spend management strategy that covers your entire financial picture. See how Medius Pay can help you take charge of your payments and boost efficiency.
