Streamline Your Payment Approvals Process for Faster, More Efficient Transactions

Introduction to Payment Approvals

Payment approvals are a critical step in the payment process. They allow you and your team to verify that transactions are correct and authorized before funds are transferred. In today’s fast-paced business environment and for any business during expansion, it’s essential to have an efficient and reliable payment approval system in place. This article will discuss the importance of payment approvals and provide tips on how to streamline the process for faster, more efficient transactions.
 
 

Common pain points of manual Payment Approvals

To this day, many small business owners still rely on manual processes to review and approve payments/invoices. While this may seem advantageous for business owners who want to be closely involved with payments to keep an eye on expenses and cash flow, complications may arise if the individual making the purchase is not the same as the one who reviews, approves, and makes the payment.

Manual payment processes are time-consuming, error-prone and lead to time-sensitive bottlenecks and delays that can also cause late payment penalties, or worse: irreparable damage to the relationship with your supplier.
 
 

Benefits of streamlining Payment Approvals

Bulk payments offer a number of benefits for businesses, including:

• Increased efficiency: Payment approval workflows can automate notifications and reminders to designated personnel when a payment is ready for approval, when approval is pending, or when approval is overdue. This helps to ensure that payments are processed promptly and reduces the need for manual follow-up.
• Improved visibility and control: Automated payment approvals can provide better visibility and control over the payment process, allowing companies to track payment status, identify potential issues or delays, and take corrective action if necessary. This can help to improve cash flow by ensuring that payments are made in a timely and efficient manner.
• Fraud prevention: Payment approvals can help monitor for suspicious activity, such as large or unusual transactions, and to flag these transactions for further review. This can help to prevent fraud by allowing the account holder or the payment processor to investigate and stop the transaction if necessary.

How to streamline your payment approvals process

Many businesses nowadays are adopting digital payment providers to help streamline and automate all their payment processes, including approvals. As a global AP/AR solution designed for businesses, Veem offers customizable approval workflows that allow assigned team members to quickly and accurately approve transactions, reducing the need for manual intervention.

With Veem, you can even automate notifications and reminders to designated personnel when a payment is ready for approval, when approval is pending, or when approval is overdue. This helps to ensure that payments are processed promptly and reduces the need for manual intervention.
 
 

How to implement payment approval workflows efficiently

When creating your first payment approval workflow, start by addressing these three questions:

• Who? Decide who should be involved in the process— it can be your office manager, the person in charge of purchasing, your in-house bookkeeper, or an external accountant.
• What? Purchases— what kind of payments will your team be reviewing? Which teams will be reviewing what?
• How much? Amounts— what amounts will I allow each person to approve?

Not all payments have to go through the same process. With Veem, you can build and customize an approval workflow that is unique to your organization or company structure. Veem allows you to set limit-based approvals where an assigned user can approve payments based on amount, or have a designated set of users to approve your payments with departmental approvals.
 
 

Conclusion

Payment approvals play a critical role in the payment process, helping to drive efficiency, prevent fraud and ensure that only valid transactions are processed. With the right tools and processes in place, businesses can improve the efficiency and accuracy of their transactions and enhance the customer experience. By reducing the need for manual intervention and ensuring that payments are processed in a timely and efficient manner, streamlined payment approval workflows can help to save time and improve productivity.