In today’s fast-paced business landscape, efficient management of financial transactions is essential for driving growth and maintaining competitiveness. NetSuite stands out as a preferred solution for many businesses due to its flexible options for both sending and receiving payments. By leveraging NetSuite’s capabilities, organizations can streamline their payment processes, saving time, reducing costs, and optimizing cash flow management.
As technology advances, traditional payment methods such as checks are gradually being replaced by more modern alternatives such as Electronic Funds Transfers (EFTs), wire transfers, and ACH payments. However, understanding the distinctions among these payment options is crucial and allows businesses to make informed decisions about their payment processing strategies.
Each method comes with its own set of advantages and considerations, including cost efficiency, the speed at which funds are transferred, accessibility and security and risk management. By carefully evaluating these factors, businesses can optimize their payment processes to support their operations effectively.
What are EFTs?
EFTs are any electronic way of moving money and are frequently referred to as electronic bank transfers, e-checks, or electronic payments.
Exploring Different Types of EFTs
- Automated Clearing House (ACH)
This is an electronic transfer between two financial institutions made using the ACH network, which moves money between banks and credit unions in the US and Puerto Rico. ACH transactions are administered and operated by the National Automated Clearing House Association (NACHA).
- Wire transfers
These transfers move money quicker, but also can come at a higher risk. There are two types of wire transfers: Domestic and International. Domestic wires are facilitated by the Federal Reserve and take place on the Federal Reserve Wire Network, also known as the Fedwire. Domestic wire transfers can be delivered the same day. International wire transfers typically go through the SWIFT network and can be delivered within two business days.
What is Payment Automation?
Payment automation refers to the process of automating various aspects of the payment process within a business. It involves using technology to streamline and optimize tasks related to making and receiving payments, such as invoicing, bill payment, payroll processing, and reconciliation. Payment automation aims to eliminate manual tasks, reduce errors, save time, improve efficiency, and enhance control and visibility over financial transactions. This can be achieved through the implementation of software solutions, integration with banking systems, and leveraging electronic payment methods.
Key Considerations for Payment Automation Solutions
As businesses transition towards automated payment solutions within NetSuite, selecting the right platform becomes critical. Several factors should be taken into account when evaluating payment automation solutions:
- Streamlined Payee Onboarding
Simplifying the onboarding process saves time and resources for both your business and your vendors. Instead of spending hours manually entering data or navigating complex setup procedures, find a solution that automates this process.
- Effortless Configuration
Time is of the essence in business operations. Opting for a solution with an easy self-service setup process streamlines configuration, minimizing downtime and maximizing productivity.
- Flexibility in Payment Options
Recognizing the diverse needs of businesses, an ideal payment automation solution offers a variety of payment options. Even though checks are becoming less common, they’re still used by many businesses. So, it’s important to find a way to manage both electronic and paper payments efficiently.
- Enhanced Control
Empowering businesses to maintain control over vendor relationships and payment options is imperative. Opting for a solution that offers visibility and flexibility in payment management ensures strategic decision-making and fosters collaborative partnerships with vendors.
- Prioritize Security
In a world with cyber threats, safeguarding your financial assets is non-negotiable. Ensure the solution has robust security measures, including authentication protocols when releasing payments and fraud prevention mechanisms.
- Ensure Compliance
Adherence to industry standards, such as SOC2 certification, underscores the commitment to regulatory compliance and data integrity. Choosing a solution that aligns with these standards instills confidence in stakeholders and protects your business against potential threats.
Automate Payments in NetSuite with SquareWorks
SquareWorks offers a robust Payment Automation solution, ensuring the most efficient and secure way to send payments without ever leaving NetSuite. With SquareWorks Payment Automation, there’s no need to generate NACHA files or login to your bank portal to release payments. Instead, seamlessly link your bank account through our user-friendly self-service setup process. Supporting all US banks and allowing for unlimited subsidiaries, your business can seamlessly scale in the future.
Say goodbye to manual data entry with our vendor self-onboarding process. Vendors receive email invitations, allowing them to effortlessly enter their banking information. We prioritize flexibility, offering a range of payment options, including ACH and Check Printing, to accommodate your unique business requirements. Once the vendor submits their payment details, you’re in complete control. Within NetSuite, you can review the information provided and easily approve or reject.
Security is top of mind, which is why our industry-leading security practices, including double authentication for payment releases, mitigate the risk of fraud, providing you and your stakeholders with peace of mind. SquareWorks is SOC2 compliant, demonstrating our commitment to regulatory compliance and data integrity, ensuring a secure environment for your financial transactions.
If you’re interested in learning more about this solution, please reach out to us here.