Automating Accounts Payable Produces Efficiency, Cost Savings and More

If you are like most business owners and managers, you’re looking for ways to do more with less. An increasingly popular strategy for building efficiency into an organization’s treasury management function is to automate accounts payable (AP).

A growing number of banks are offering an efficiency-generating AP automation solution known as “integrated payables.” The solution makes sense for many organizations that send multiple payment types, as well as many that send a large number of wire transfers.

Integrated payables streamlines the AP payments process by enabling an organization to send instructions for initiating both paper check and electronic payments to its bank in a single, consolidated electronic file instead of manually entering payment instructions into multiple systems.

The bank accepting an integrated payables file will print your disbursement checks, insert them into envelopes and mail them, while funneling your other transactions into the electronic payment processing channels you designate.

New Integrated Payables Offering

At Hancock Whitney we recently introduced our Payables Manager integrated payables solution. Payables Manager enables a business to automate its existing payment methods to both save staff time and cut costs.

Businesses using Payables Manager transmit a consolidated file of instructions for payment types including checks, ACH payments, wire transfers and book transfers to the bank via a Secure File Transfer Protocol (SFTP). The file can include instructions for sending payments to both vendors and consumers.

Through email and the client’s SFTP service, Hancock Whitney notifies the client if the file was received successfully and reports any formatting errors. The bank then groups the payments by type and sends them to the appropriate processing function ACH transactions get sent to ACH processing, wire transfers to the wire room, checks to check processing and book transfers are processed immediately.

Typically, businesses build a payment file in the Hancock Whitney designated file format in their ERP or treasury workstation. However, for businesses without such software and sophisticated file export capabilities, the bank can also accept an Excel or CSV flat file.

A Variety of Benefits

Outsourcing check disbursements saves staff time related to check printing and envelope stuffing, and reduces costs related to check-printing equipment, paper, ink and postage. It also eliminates delays associated with getting checks approved and signed, since authorized signers aren’t always in the office; they can instead approve checks online. Additionally, Payables Manager formats a positive pay check-issue file to upload to the bank for fraud protection, relieving AP staff from that duty.

Using Payables Manager, AP staffers don’t have to create electronic payments in one software program and rekey them into the Treasury Manager online portal. Users experience straight-through processing and avoid the need for redundant approvals.

By streamlining processing and avoiding delays, Payables Manager speeds payments, which can both improve a business’s vendor relationships and increase opportunities to earn early-payment discounts.

A Red-Carpet Experience

Automating AP represents a significant transition, but we partner with you every step of the way.

Our Payables Manager onboarding process provides a red-carpet experience. Our treasury customer advocates train you on the process, and after you perform some upfront file mapping, they work closely with you to test file transmissions and correct any formatting errors before you begin sending live payments.

A Standalone Check Outsourcing Option

For businesses primarily interested in achieving the time- and cost-saving benefits of check outsourcing, Hancock Whitney has also introduced Check Manager, an AP automation solution that exclusively supports check payments.

If you adopt Check Manager, employees no longer must set aside time to print and mail checks. Check Manager allows you to access check outsourcing services — and all the related benefits noted above — working with your familiar Hancock Whitney treasury management relationship team, rather than a third-party provider.

Interested in automating your accounts payable operation to be more efficient? Contact your Relationship Manager or Treasury Management Sales Representative to get started.