Vendorplace

Category: news

5 mistakes to avoid when paying suppliers

In a way, suppliers are part of your team and are an important factor in the success of your company. Therefore, your relationship with them must be healthy and meet certain criteria for the welfare of their work commitment.

The control of the payment of invoices to suppliers is a key point for the administration of a company. This helps you save time and money, as well as avoid mistakes and complications. As a financial director, you must manage accounts payable without unexpected movements; keeping good control of invoices will support your company’s accounting.

Establishing a control process for invoicing your suppliers will help you better manage your business. Save time and money with these tips.

To obtain optimal results with your supplier invoice management, there are 5 points you should always keep in mind:

1.- Do not neglect communication

 

When talking about money matters, it is essential to try to create solid and clear relationships, so you should always be honest with the situation that arises.  

If for any reason you cannot meet your obligation on the agreed payment date, contact your supplier and inform him of the problem, maintaining a cordial and respectful treatment, so that you can negotiate a restructuring of the debt or a possible postponement of payment.  

You must avoid falling into acts that fracture the relationship and take into account the same procedures that you perform with your customers as effective collection actions to apply them with your suppliers. Do not forget that in this case, you are the customer.

2.- Validate the invoices before issuing them

 

When talking about money matters, it is essential to try to create solid a

The invoices you send to your suppliers must have everything in order. Before issuing an invoice, you should check for possible errors, without waiting for the customer to check this point. 

 

An unchecked invoice may be paid later than it should be, not to mention that it will cost more work to rectify it later, increasing the administrative work.

3.- Control the invoices pending payment

 

For both you and your suppliers, invoice payment control is one of the most important tasks in invoice management. Poor invoice control can lead to cash flow problems. 

 

Therefore, you should keep a record of all invoices and indicate the payment deadline your company is obliged to meet. Failure to do so can hinder payment processes and generate high interest on late payment for not paying within the stipulated time. 

4.-Do not manage your accounts manually.

 

Performing tasks manually makes the processes subject to many more errors, which causes the need to reprocess the information and, as a consequence, the data is less reliable. 

 

To avoid these setbacks, investing in automatic collection software is essential. With it, you can automate the activities of your team and achieve greater security, productivity, and agility in each of the processes.

5.- Use invoice management software

 

An effective method for controlling supplier invoices is, without a doubt, an invoice management platform. 

 

If you have an automated software adapted to your company, you reduce the effort of supplier invoice management and operating costs, speeding up the financial closing and auditing processes. In addition, an invoice management platform facilitates invoice analysis and performance monitoring, thus ensuring that payments are issued on time, without delay.

Accelerate your business processes with Vendorplace

 

The goal of any finance department is to shorten the lead time for payment fulfillment in the accounts payable process. That’s why digital vendor payment tools can help you in a variety of ways by applying them in the right way to your business financial management model.

 

Digitize and streamline payments to your suppliers. Get to know the new way to pay your suppliers in seconds with Vendorplace, synchronizing your invoices, approving and paying each one of them. Avoid delays and pay your suppliers quickly by any means, without the need to make bank transactions; or upload your receipts to the platform.

 

 Payments are always on time and under control!

Try it for free! Create your account today

and start enjoying our benefits.

Start for free
Learn More

Why does offering secure payments increase your sales?

It’s definite: the world has changed completely. Every company around the globe has been impacted in one way or another by the recent COVID-19 pandemic. And although recently economic activity is slowly returning to normal, the reality is that we have acquired new habits that are here to stay, making companies have to adapt to survive in an environment that is becoming increasingly competitive. One of them is the adoption of various digital tools to improve their business processes.

In Mexico, the tendency to use different means for receiving online payments has grown in recent years, which represents a valuable market opportunity that companies cannot afford to miss.

E-commerce has become an option that today represents a channel of great value for companies of all sizes (especially for SMEs). And this modality offers a feature that the pandemic has favored: to operate remotely. Although for many people it could represent something unknown, the reality is that it can be as simple as using social networks, which you already manage to make sales through them.

You may think that it is easy to get lost in this enormous range of opportunities, but the reality is that it is very simple. On the other hand, if there is one obstacle to why online modalities have not yet reached their full potential in the eyes of customers, it is the distrust of making payments and transactions over the Internet. 

 

Surely it has happened that a user questions whether your site offers a guarantee that the receipt of payments is safe, since it may be the first time that your customer makes an online payment or perhaps previously suffered some kind of fraud performing such activity. This attitude is normal, and it is a wake-up call for online business owners, like you, to pay attention to this issue.

Therefore, you should not give your store visitors and potential customers a chance to think about things like “Will I get ripped off?” or “What if my card is cloned and I get charged for transactions I didn’t make?”

Anticipate and try to make your store offer the necessary information to ensure customer confidence with these three steps:

1.- Select a payment gateway that adequately adapts to your company.

If you have an online store, you need to have a way to accept payment for your products or services. For this, there are payment gateways (some with more benefits than others). That is why you should choose the one that best suits the needs of your business and, above all, the payment method that your customers prefer to improve the management of accounts receivable.

2.- Allow your customers to make their payments through bank deposits.

Do not eliminate from your customer portfolio those people who do not have a credit or debit card to make a payment, or who for personal reasons do not want to make payments with them and prefer to settle their debt through cash payments. Keep in mind that many people still distrust making payments with their plastic. Therefore, you should offer them another payment method, so that they feel secure and make the corresponding payment without any complications. 

You can accept payments by bank deposit and, in this way, your customers will be able to go to any banking institution, request references of the account to which they will make the deposit, and have a receipt with which they will be able to pay for the products or services purchased.

3.-Accept debit card payments.

Many people believe the myth that online payments can only be made with a credit card. You may think that’s old-fashioned now, but it doesn’t hurt to mention to your customers that they can make payments with a credit card as well as a debit card.

 

One of the advantages of making payments with a debit card is that it’s technically the customer’s money, so a user is more likely to have a debit card because they don’t need to approve a credit application.

¡Digitize and streamline your business payments!

The goal of any finance department is to shorten the lead time for payment fulfillment in the accounts payable process and thus improve cash flow. That’s why digital tools can help you in a variety of ways, applied in the right way to your business financial management model.

Meet Vendorplace, the only platform you need to pay your suppliers and collect from your customers. Pay, collect and reconcile in seconds! With Vendorplace, synchronize your invoices, approve and pay. Avoid delays and pay your suppliers quickly by any means, without the need for banking procedures.

Digitize and speed up payments to your suppliers. Get to know the new way of business management, synchronizing your invoices, and approving and paying each one of them. Avoid delays and pay your suppliers quickly by any means (without the need for banking procedures) or upload your receipts to the platform.

Payments are always on time and under control! Thousands of companies trust Vendorplace… And you, when?

Try it for free today! Create your account

and start enjoying our benefits.

Learn More

5 strategies to improve your business cash flow

One of the most common problems faced by SMEs is reaching the point where they find themselves without the cash needed to meet their business responsibilities, such as accounts payable to suppliers. This has a lot to do with a lack of planning, but also with the absence of the necessary tools to keep their finances in order.

 

What if, for example, your customers paid their invoices on time, even earlier than agreed? The benefits for your company’s operation would be immediate. But of course, concrete measures are needed to achieve this, what are they and how can you start implementing them?

 

When we analyze our cash flow, we look for income to be greater than expenses. If the opposite happens, the capacity to generate money to cover fixed expenses and leave a margin of profitability is low and can cause you problems in the future.

Did you know that approximately 62% of SMEs in our country fail due to poor cash flow management?

 

The lack of control and optimization of cash flow is one of the main factors of bankruptcy in companies. To avoid failure in the financial management of your organization, there are certain tips to improve your cash flow. We hope they will help you!

 

1.- Keep a close eye on liquid assets.

 

This is the most important recommendation to improve your company’s cash flow and economic health. You must keep a close eye on cash balances, bank balances, accounts receivable, and credit payments. In this way, you will be able to make more solid projections, evaluate the company’s ability to produce cash, identify capital leaks and, in general terms, define more accurately the current health of your company.

 

Regarding this issue, it is advisable to rely on specialized software in accounts payable and receivable, as it can be decisive to maintain a positive cash flow within your company.

 

2.- Invoice and collect as fast as possible

 

The faster you invoice your customers, the faster the customer will be able to settle his account. Keep in mind that the average invoice payment term is 30 days, two months between the delivery of a product or service and the payment. 

 

An electronic invoicing system is a key, as well as a collection software that allows you to monitor and automate accounts receivable. In any case, the idea is that your customers pay on the previously established dates or even earlier. Think about offering an incentive to encourage this behavior in users, such as a discount for prompt payment, for example.

 

3.- Plan your growth well

 

When companies have a good level of sales, they seek to grow and expand. That’s a wonderful idea, but if you remember how to interpret cash flow, it will be clear to you that the ideal balance is when there is more income than expenses.

 

Hiring more staff, buying assets, or opening new branches of your brand can lead to an economic crisis if there is no ROI in the short or medium term. Therefore, before acting, you should carefully analyze the impact on cash flow before implementing growth actions.

 

4.- Reduce your expenses and avoid getting into debt.

 

Requesting a loan to cover your company’s cash deficit is a red light that your income is lower than your expenses. Therefore, you must eliminate unnecessary expenses and identify the causes of the problem, so that you can solve it as soon as possible. 

Keeping an eye on your company’s level of indebtedness will allow you to maintain a positive cash flow and, therefore, good financial health.

 

5.- Lean on technology to improve your cash flow.

 

Nowadays, the adoption of technological tools is one of the best ways to invest and improve cash flow.

 

You should consider that SMEs that monitor their cash flow every month have a survival rate of 80%. To adequately monitor this indicator, the use of digital tools is crucial, especially to optimize time and improve accuracy.

 

Accelerate your business processes with Vendorplace

 

The goal of any finance department is to shorten the lead time for payment fulfillment in the accounts payable process and thus improve cash flow. That’s why digital tools can help you in a variety of ways by applying them in the right way to your business financial management model.

 

Digitize and speed up payments to your suppliers. Meet the new way of business management with Vendorplace, synchronizing your invoices, approving and paying each one of them. Avoid delays and pay your suppliers quickly by any means (without the need for bank procedures) or upload your receipts to the platform.

 

 Payments are always on time and under control! 

Try it for free! Create your account

and start enjoying our benefits

Start for free
Learn More