Accounts Payable (AP) departments are typically viewed as cost centers with minimal impact on improving the company’s bottom line.  AP departments continue to process manually and may still be generating paper checks to pay vendors.  

What if You Could Revolutionize Your AP Department Through Automation?

Integrated Payables (IP) is a solution that may help some businesses streamline the payables process by enabling companies to send a single, consolidated formatted file securely to the bank for initiating multiple payment types instead of manually entering separate payment requests into multiple systems or sending multiple formatted files.  The IP service can directly integrate with enterprise resource planning (ERP) and accounting systems for additional efficiencies.  This simple concept has the potential to save your business time, expenses, and increase cash on hand.

Payment Types IP Can Consolidate

IP systems can accommodate various payment types including ACH transactions, wire transfers, book transfers, checks and commercial card payments.  Traditionally, separate files are generated and sent to the bank for each payment type in specific formats required to process the payment.  Companies may even have someone designated to print, stuff and mail paper checks. With IP, businesses can consolidate these processes into a single electronic file to their bank.  

Enhancing the Bottom Line, Mitigating Fraud, and Minimizing Human Errors

AP staff will have more time to follow up on value added functions like increasing financial oversight, capturing vendor discounts, and collecting overdue receivables which all contribute to enhancing the company’s bottom line.

Aside from the direct savings in manpower and time, IP can provide additional advantages.  IP can help to mitigate fraud with a system of checks and balances in place to alert users to exceptions.  It can provide an easier reconciliation process as it receives back acknowledgements, confirmations, and information reporting from the bank. IP also helps a company improve the visibility of their cash flow to make better investment decisions regarding their cash position. Finally, compliance concerns can be minimized by reducing human intervention and errors which helps to ensure price and contract adherence.

Are You a Candidate for IP?

The best candidates for Integrated Payables are generally companies with a high volume of ACH, wire and check origination volume that also have an ERP, AP, or treasury system able to generate ISO20022 and EDI820 formatted payment instruction files.  It would also be very helpful to have technology support to assist with developing EDI formatted files and establishing a secured connection between the business and the bank required to transmit that file through secure file transfer.  Other good candidates are businesses looking to consolidate and send multiple payment types through one channel, or ones with an eye on transitioning from paper to electronic processing to cut costs.

Spend more time on your core business and less on AP processing.  First Hawaiian Commercial Integrated Payables SM can help businesses streamline workflows through the consolidation of multiple payment types into a single electronic file.  To get started, contact your FHB Banker, or visit any branch.