PayStand on how to digitize the enterprise cash cycle (part 2: Payments)
By Scott Campbell
Co-Founder and Head of Solutions at PayStand
March 19, 2019 — Scotts Valley, CA
In our previous post, we talked about the importance of looking at the enterprise cash cycle as a whole to get a better understanding of how it functions today. Armed with an informed perspective on all parts of the process, business leaders can then recommend changes to optimize revenue.The first part of our review scrutinized invoicing, which covers communicating to customers what they’ve purchased and how much they owe. So what’s the next logical step? Payment processing, or the options available to customers to make payments.
Your first instinct about payment processing may be that your business has already digitized it. Every payment is recorded in your enterprise resource planning (ERP) system. The ERP gives you digital access to all payment data and a variety of reports. That means payments are digitized, right? Wrong.
There’s more to digitizing payment processing than just an online record.
Digitizing payment processing means evaluating all of the payment options your business offers and removing as much manual work as possible – for both employees AND customers.
So, where do you start? First, take an inventory of all the payment methods your business offers. If you are tracking payments in an ERP or invoicing platform, this may be as simple as running a report on all payment types. Or you might have a to do a bit of legwork and check payment types in multiple payment processors.
Whatever the case, there’s likely a mix of checks, ACH deposits, wire transfers, credit and debit card payments, and possibly even cash. Determine what percentage of payment methods are used for a given time period. Let’s say you are a $100MM year business accepting payments across all payment methods. Your final tally might look something like this:
Continue reading here: https://www.paystand.com/blog/how-to-digitize-the-enterprise-cash-cycle-part-2-payments