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The complete gui...

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The complete guide to payment automation

Cash-flow-management-payment-automation-header
Cash-flow-management-payment-automation-header

The complete guide to payment automation

Cash-flow-management-payment-automation-header
Cash-flow-management-payment-automation-header
  • Introduction
  • What is payment automation?
  • Types of payment automation
  • Benefits of payment automation
  • The hidden challenges of manual payment processes
  • How to streamline payment automation
  • Best practices that drive implementation success
  • Transform your business with payment automation
  • Introduction
  • What is payment automation?
  • Types of payment automation
  • Benefits of payment automation
  • The hidden challenges of manual payment processes
  • How to streamline payment automation
  • Best practices that drive implementation success
  • Transform your business with payment automation

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Introduction

Here's a surprising truth in 2024: more than 4 out of 5 companies still process vendor payments the same way they did decades ago — with paper checks and manual invoices. The result? Finance teams waste hours on data entry, approval chains turn into mazes, and businesses hemorrhage money through late fees and missed discounts. While some businesses seem stuck in this paper chase, forward-thinking companies are discovering better ways through payment automation.

Payment automation can help you regain that lost time and create a more strategic finance function. When invoices arrive, smart technology extracts the data and routes it to approvers automatically. Payments flow smoothly on schedule, while transactions are matched and reconciled without manual effort. No more data entry, no more reconciliation headaches, and no more missed payments. Instead, your finance team can focus on what they do best – closing the books efficiently, analyzing spending patterns, and finding new ways to fuel growth.

Watch as these improvements ripple across your company. Finance teams will reclaim hours once lost to manual tasks. Managers will gain clear visibility into their spending. Vendors will receive payments on time every time, strengthening vital business relationships. And leadership finally gets the real-time financial insights they need to make better decisions.

Ready to transform how your business handles payments? Let's explore how payment automation makes it possible.

What is payment automation?

Payment automation transforms how businesses handle money. It's a technology-driven process that digitizes and automates your entire payment lifecycle — from the moment an invoice lands in your inbox to its final reconciliation. No more manual tasks, and no more human error.

Think of it as your tireless financial assistant. Instead of manually entering payment details, chasing down approvals, and reconciling accounts, specialized software handles these tasks automatically. When an invoice arrives in your inbox, the system springs into action — scanning the document, extracting key information, and routing it through your approval process without anyone lifting a finger.

It flips traditional payment workflows on their head. While conventional approaches rely heavily on manual data entry, paper trails, and human oversight at every step, payment automation leverages innovative technology to eliminate these time-consuming tasks. Gone are the days of printing invoices, physically routing them for signatures, or manually entering payment details into your banking portal.

The technology behind payment automation is surprisingly sophisticated yet user-friendly. Modern payment automation platforms use a combination of OCR (Optical Character Recognition) technology to read documents, APIs (Application Programming Interfaces) to connect with banks and accounting software, and machine learning algorithms to improve accuracy over time. These systems integrate seamlessly with popular accounting software like QuickBooks and Xero, ensuring your financial records stay up-to-date automatically.

Types of payment automation

Payment automation comes in several forms, each designed to streamline specific financial processes in your business. Let's explore the main types that can impact your payment operations.

Invoice automation

Automated invoice processing eliminates the need for manual data entry. When bills arrive, the software captures, codes, and routes them automatically. Using smart technology, it extracts key information from invoices and populates your accounting software — no typing required. What once took hours now happens in minutes.

Recurring payment automation

Think about how you make subscription payments and pay regular bills. Recurring payment automation handles these predictable transactions automatically, paying vendors, suppliers, contractors, and others on schedule. It's like having a reliable assistant who never forgets a payment and always keeps perfect records.

Accounts payable (AP) automation

AP automation software makes managing vendor payments effortless. From purchase orders to payment processing, these systems handle the entire vendor payment lifecycle. They route invoices for approval, schedule payments, and maintain detailed audit trails automatically.

Accounts receivable (AR) automation

Getting paid faster is easier with automation technology. AR automation manages your incoming payments, automatically sending invoices, tracking payments, and following up on overdue accounts. It even reconciles payments with bank statements, saving hours of manual matching.

Expense management automation

Say goodbye to manual expense reports. Expense management automation transforms how you handle employee spending. From receipt capture to reimbursement, each key step in the process happens automatically, saving hours of processing time while ensuring accurate records.

Benefits of payment automation

Every business wants to save money, time, and headaches. Payment automation delivers on all three fronts, transforming how companies handle their finances. Let's explore why businesses are rapidly adopting this technology and the concrete benefits it brings.

Cost efficiency

Payment automation saves you money from day one. Instead of your team spending hours processing payments by hand, automation software handles it automatically — cutting costs and eliminating expensive mistakes. No more fixing typos, searching for missing payments, or dealing with costly errors. Your finance team can stop pushing paper and focus on work that actually grows your business. Even small improvements add up: catching just a few errors each month could save thousands of dollars a year.

Time savings

One of the most immediate benefits of payment automation is the time saved on payment-related tasks, from expense reimbursement to vendor payments. What once took hours or days can now be accomplished in minutes, as automation handles everything from invoice processing to payment execution, removing bottlenecks and accelerating the entire payment cycle. Modern payment solutions can process thousands of payments in the time it would take to handle a single manual transaction, making this acceleration particularly valuable for businesses with lots of vendors and high transaction volumes. Paper-based expense reimbursement processes that once took weeks now resolve in days, while automated processes match payments with invoices in real-time, eliminating the need for time-consuming manual reconciliation at month-end.

Enhanced accuracy

Accounting errors are unavoidable with manual processing, but payment automation all but eliminates this issue. Automated workflows follow predetermined rules, ensuring every payment is handled according to established protocols. By eliminating manual data entry, automation reduces the risk of typos, misplaced decimal points, and other common errors that can have serious financial implications. Automation helps maintain detailed digital records of every transaction, making it easier to track and verify payment information when needed. This level of accuracy not only prevents costly mistakes but also builds trust with vendors and financial partners.

Improved cash flow management

Payment automation gives you a clear view of your money — where it is, where it's going, and when it's moving, providing new ways to improve cash flow. No more guessing about payment status or scrambling to check bank balances. You'll know exactly when bills are due and have the whole picture of your cash flow at your fingertips. This means smarter decisions about when to spend and when to save. Plus, automated payment scheduling helps you consistently pay on time, and you’ll be able to spot patterns and plan ahead with confidence. Think of it as a financial crystal ball that helps you see — and shape — your cash flow strategy.

The hidden challenges of manual payment processes

Manual payment processes continue to be a significant obstacle to business efficiency and growth. Companies relying on paper-based workflows face time-consuming data entry, where finance teams spend countless hours manually inputting invoice information, chasing approvals, and executing payments. This tedious cycle drains valuable resources and creates bottlenecks that slow down operations, particularly during the month-end close. The human element in these manual processes inevitably leads to errors — from misplaced decimal points to duplicate payments — resulting in costly mistakes that require time and effort to correct. These challenges also limit visibility into cash flow, making it nearly impossible to make informed financial decisions or forecast accurately.

As organizations grow, the burden of manual processes intensifies and makes them increasingly unsustainable. For starters, physical documents pose significant security risks, as they can be lost, stolen, or tampered with, leaving businesses vulnerable to fraud and compliance issues. Also, the mounting volume of payments can quickly overwhelm existing staff, forcing companies to choose between adding headcount or accepting delays and errors as the new normal. This scalability crisis is further complicated by poor integration with modern financial tools, creating data silos that hinder efficiency. Forward-thinking companies recognize that these challenges are not merely operational inconveniences but strategic roadblocks that can severely restrict growth and competitiveness.

How to streamline payment automation

Brex’s AI-powered spend management platform helps you manage all your bills in one place. When you can view and act on all invoices, payables, and payments for any period at any time, you can automate much of the manual work that slows teams down. Here’s how Brex helps modern businesses reduce manual work and automate payments — and improve overall expense management and accounting

Automated invoice processing

When invoices arrive, Brex AI technology immediately captures data from PDFs and email attachments and automatically extracts key information like amounts, due dates, and vendor details. Invoices are then matched with purchase orders and categorized by department or project. Each invoice follows your custom approval workflows, notifying the right approvers and tracking every step until payment is complete. You can even auto-draft the bill payment with over 90% accuracy and edit as needed.

Bill pay automation

Let Brex handle your vendor payments from start to finish. Schedule one-time or recurring payments, and we'll execute them automatically on the dates you choose. Choose from multiple payment methods — ACH, wire transfers, or virtual cards that earn big rewards — all from one dashboard. Custom approval workflows ensure proper oversight, while automatic reminders prevent late payments.

Virtual cards

Create and manage virtual business credit cards to pay your bills in seconds. Set specific spending limits, expiration dates, and merchant categories for each card. Need a card for a one-time purchase? Generate it instantly, use it, and close it when done. Each transaction is automatically categorized and matched with receipts, while real-time alerts keep you informed of every purchase.

Payment analytics

Access your real-time spend data through intuitive dashboards. Track payments and expenses by department, project, or vendor with just a few clicks. Our platform generates spending reports, flags unusual patterns, and provides cash flow forecasts based on scheduled payments and historical data. Set up custom alerts to stay informed about key spending metrics and budget thresholds.

Fast vendor onboarding

Strong vendor relationships start with smooth onboarding. That's why Brex makes vendor onboarding effortless — just email them a secure link and they'll handle the rest. They enter their payment details directly, eliminating manual data entry and typos. No more chasing banking information or double-checking routing numbers. Just accurate, secure vendor data that keeps payments flowing smoothly.

Automated expense management

Expense reconciliation happens faster with Brex, with each transaction automatically categorized and routed through custom approval workflows. Employees can add notes or project codes on the go, while managers get instant visibility into team spending. Brex will flag any expense policy violations automatically and maintains digital records of every transaction. Seamlessly sync Brex with your ERP to further automate accounting workflows.

With Brex, you get payment automation that delivers because every feature is designed to eliminate manual tasks while giving you more control and visibility over your company's spend.

“Before Brex, we had Bill.com for invoicing and corporate cards through Bank of America, and we used our payroll provider for reimbursements. Now having a unified approach to all of this with Brex has really streamlined the process.” — Sean Soper, Head of Accounting and Financial Operations, Alchemy

Best practices that drive implementation success

Ready to implement payment automation? Here’s the blueprint for faster ROI.

Set clear goals and objectives

Start your journey by defining exactly what success looks like. Map out specific, measurable goals that align with your broader business strategy. For example, aim to reduce invoice processing time by 75% or cut payment processing costs by 40%. Then create a clear timeline for achieving these targets and identify the key performance indicators you'll track. Whether it's processing speed, cost reduction, or error rates, these metrics will guide your progress and help demonstrate ROI.

Build an implementation team

Success depends on having the right people in the right roles. Assemble a dedicated project team that brings together finance, IT, and operational expertise and assign clear responsibilities — from project management to technical configuration to user training. Designate project champions within each department who can advocate for the change and support their colleagues. Create open communication channels like regular meetings or Slack channels that keep everyone aligned and informed throughout the implementation process.

Developing a robust testing and quality assurance process

Quality assurance isn't just a checkpoint — it's your path to confidence. Start with focused unit testing to verify individual components of the payment process work as intended. Move on to integration testing, ensuring all pieces work together seamlessly. Involve real users in acceptance testing to confirm the solution meets practical business needs. Then, thoroughly document test results and address any issues before moving forward. This will prevent headaches after launch.

Establishing strong change management practices

Change management makes or breaks implementation success. Start communicating early and often with everyone affected by the new payment automation processes. Share the vision behind the change and the benefits it brings to different teams. You’ll want to provide comprehensive training that goes beyond basic functionality to include best practices and efficiency tips. Address concerns promptly and transparently, and create feedback loops to capture user insights and adjust your approach accordingly.

Creating a launch strategy

Plan your rollout thoughtfully, whether you choose a phased approach with just a few small vendors or full deployment. Define clear go-live criteria and clear milestones, like successfully processing the first 100 automated payments. Then create detailed cutover plans as well as contingency plans for potential challenges. Be sure to schedule extra support during the initial launch period when teams are adapting to new workflows. Monitor early adoption closely and celebrate quick wins, like time saved processing invoices, to build momentum.

Supporting long-term success

Implementation doesn't end at launch. You’ll want to establish ongoing support channels for users and regular check-ins to assess automation adoption. Create a knowledge base of best practices and common solutions. Schedule periodic reviews to evaluate performance against initial goals and identify opportunities for optimization.

Success in automating payments comes from careful planning, strong leadership, and unwavering attention to detail. By following these best practices, you'll create a foundation for lasting positive change in your organization.

Transform your business with payment automation

It's time to abandon manual payment processes. Think about the hours your finance team spends on data entry, payment tracking, and reconciliation headaches — valuable time that could be used for more strategic projects that drive business growth. Automation changes everything and gives your team the freedom to focus on work that impacts your bottom line.

When payment processes run smoothly, operational efficiency transforms your entire organization. Your finance team achieves true resource optimization, shifting from tedious tasks to meaningful analysis. Managers see exactly where money flows in real time, and vendors build stronger relationships with your business through reliable, on-time payments. This is how modern businesses operate, scale, and thrive.

Brex makes this transformation simple. Our automated bill pay solution accelerates invoice processing, eliminates manual data entry, and streamlines every vendor payment.

Mark Salvioli, Senior Manager US Finance at Northern Data, says: “We love having a place to save all of our invoices, vendors, and their payment instructions. With Brex, we have one platform where we can pay bills, manage expenses, and set up cards for our entire team.”

Thousands of businesses already trust Brex to power their payments — isn't it time you joined them? Sign up now and give your finance team the automation tools required to compete in today’s business landscape.

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See what Brex can do for you.

Learn how our spend platform can increase the strategic impact of your finance team and future-proof your company.

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