Using AP software is important when it comes to maintaining balances and automating invoices. How does it help maintain and improve the relationships that you have with your suppliers? Read 8 ways below.
1. Suppliers Prefer Early Payers
An AP software that can automate the processing of invoices and payments will help a business tremendously. Suppliers prefer working with companies that give them the least amount of headaches. As long as you pay early, you may even be eligible for early payment discounts which increase your budget for the coming month.
2. Agreements Won’t Be Broken
It doesn’t matter whether the agreement between two entities is verbal or contractual. One doesn’t like being on the receiving end of a broken agreement. Through automated invoicing, you are able to maintain the payments that you have to and provide the records that are needed to prevent any agreements from being broken.
3. Less Risk, More Value
As time goes by, your supplier is going to be more willing to trust your company due to the least amount of risk involved when they work with you. You may even be the first to get your hands on supplies or you could get exclusive access to information and products that may not be available for everyone that your supplier works with.
4. Transparency is Key
When two companies work together at first, they may not be comfortable with sharing information with each other. Growing trust between both companies eliminates this issue and may open doors to more records being shared. This level of transparency is possible with improved supplier relationship.
5. Reduced Disputes
Disputes are settled only with verifiable information. If your company is unable to keep records due to unreliable AP software, then you won’t be able to settle disputes that go in your favor. Although this may appease your supplier at first, you should still strive to keep archives of all the invoices that go through your company.
6. Scalability Becomes an Option
When it’s time for your business to expand and grow, you have to be able to depend with your suppliers to provide you with an increased load. If they aren’t comfortable with increasing their load due to your inability to settle invoices, then you will struggle to grow as a business.
7. Automation is the Future
All industries today look toward automation and it is the key to the future. If your supplier knows that they can depend on you to keep up with automation, then they know that they have a partner as they go forward as well. Neither companies will struggle to keep up which could damage a stable working relationship.
8. Both Companies Make More Money
When automation is in place, it is possible for both companies to make more money. The supplier is going to get their funds on the date that they need those funds. They can use those funds to improve their business which can help towards the improvement of your business which relies on what you’re supplied with.
An AP software helps your business improve in many facets. Nexus Sytems can help you be more efficient and improve your relationship with your suppliers. Contact us today!