How to Automate Supplier Payments and Stop Writing Checks for Good
How to Automate Supplier Payments and Stop Writing Checks for Good
For many finance teams, the accounts payable process is still anchored in the past. Stacks of paper invoices, manual data entry, and the time-consuming ritual of printing, signing, and mailing checks create bottlenecks that slow business down. If your team is still spending valuable hours on manual payment workflows, it’s time for a change. The solution is to automate supplier payments.
Transitioning away from manual check writing isn't just about modernizing your workflows; it's a strategic move to improve efficiency, security, and financial control. By implementing the right supplier payment automation software, you can reclaim your team’s time, reduce operational costs, and build stronger relationships with your vendors.
This comprehensive guide will walk you through the essential steps to reduce check writing in accounts payable, explore the key features to look for in an automation platform, and show you how a unified system can transform your entire purchase-to-pay process.
Download the free tool: Invoice Tracking Template
Why your business needs to reduce check writing in accounts payable
Businesses need to reduce check writing in accounts payable to cut direct costs, save employee time, improve payment security, and gain better financial visibility. Manual check processing is an expensive and inefficient system that exposes organizations to unnecessary risks and operational friction.
While writing checks might seem like a standard cost of doing business, the cumulative impact of these manual tasks is a significant drain on resources. Here’s a closer look at the problems caused by an over-reliance on paper checks.
High costs of manual payments
The cost of a single paper check goes far beyond its face value. When you factor in the price of check stock, envelopes, ink, postage, and the labor required to print, sign, stuff, and mail it, the expenses add up quickly. Industry estimates often place the cost of processing a single paper check between $4 and $20, depending on the complexity of the workflow. For a business processing hundreds or thousands of invoices a month, these costs can become a major operational expense and lead to significant cash leaks.
Time-consuming and inefficient workflows
A manual accounts payable process is a major productivity killer. Your team spends countless hours on repetitive, low-value tasks: manually entering invoice data, chasing down approvals, matching purchase orders to invoices, and reconciling payments. This leaves little time for strategic activities like financial analysis, budget forecasting, and negotiating better terms with suppliers. Automating these workflows frees your finance team to focus on work that drives business growth.
Increased risk of fraud and errors
Paper checks are inherently insecure. They can be lost in the mail, stolen, or altered, making check fraud a persistent threat. A manual system also increases the likelihood of human error. Miscoded invoices, incorrect payment amounts, or duplicate payments can easily occur when data is entered and reviewed by hand. Digital payments, on the other hand, create a secure, auditable trail that significantly reduces these risks.
Poor visibility and supplier relations
Manual processes offer little to no real-time visibility into your company’s financial health. It’s difficult to track payment statuses, manage cash flow effectively, or forecast future spending when your data is locked in spreadsheets and filing cabinets. Furthermore, slow and unpredictable payment cycles can strain relationships with your suppliers, potentially leading to lost early payment discounts or less favorable terms in the future.
Invoice Tracking Template
Download the invoice tracking template to avoid costly mistakes, clarify financial patterns, and track spending throughout the year.
How to automate supplier payments in 5 steps
To automate supplier payments, a business should first analyze its current AP process to identify bottlenecks, then select the right automation software, onboard suppliers to the new system, integrate the platform with its existing accounting software, and finally, train the team before going live. Following these steps ensures a smooth transition from a manual to an automated workflow.
Step 1: Analyze and map your current AP process
Before you can improve your process, you need to understand it completely. Map out every step of your current accounts payable workflow, from the moment an invoice is received to when the payment is reconciled. Identify who is involved at each stage, how long each step takes, and where the most significant bottlenecks and pain points occur. This analysis will provide a clear baseline and help you define your goals for automation.
Step 2: Choose the right supplier payment automation software
Not all automation solutions are created equal. Look for a platform that aligns with the needs you identified in your analysis. Key features to consider include flexible payment options (ACH, virtual card, wire transfer), automated approval workflows, and robust security protocols. Most importantly, the right software should address your core challenges, whether it's managing a high volume of invoices or gaining better spend management controls.
While many tools focus only on the payment part of the process, a platform like Order.co unifies the entire purchasing lifecycle. By centralizing all purchasing and payments, you solve AP issues at their source instead of just treating the symptoms.
Step 3: Onboard your suppliers to the new system
A successful transition depends on getting your suppliers on board. Communicate the benefits of the new system to them, such as faster, more reliable payments and improved visibility into payment status. The best supplier payment automation software simplifies this process with vendor self-service portals where suppliers can securely input their payment information and track invoices. Order.co takes this a step further by managing all vendor communications and payments on your behalf, ensuring your suppliers are paid quickly and in their preferred method.
Step 4: Integrate the platform with your accounting system
To achieve true efficiency, your new platform must integrate seamlessly with your existing Enterprise Resource Planning (ERP) or accounting software, such as NetSuite, QuickBooks, or Sage Intacct. This integration automates general ledger (GL) coding and eliminates the need for manual data entry, ensuring that your financial records are always accurate and up-to-date. This is a critical step for creating a streamlined procurement automation workflow.
Step 5: Train your team and launch the new process
Prepare your team for the change by providing thorough training on the new software and workflows. Clearly define roles and responsibilities within the automated system. Start with a pilot group of users or suppliers to work out any kinks before rolling out the new process across the entire organization. Once you go live, continuously monitor performance and gather feedback to optimize the system.
Key features to look for in supplier payment automation software
The best supplier payment automation software should offer flexible payment methods, automated invoice processing, centralized vendor management, and real-time analytics. These features work together to create an efficient, secure, and transparent accounts payable ecosystem.
Flexible payment options
Your suppliers have different payment preferences, and your software should accommodate them. Look for a platform that supports a variety of payment types, including:
- ACH (Automated Clearing House): A cost-effective and reliable method for electronic bank-to-bank transfers.
- Virtual Cards: Single-use credit card numbers that offer enhanced security and control for specific transactions.
- Wire Transfers: Ideal for large or international payments that require immediate settlement.
- Check-as-a-Service: For vendors who still require a paper check, the platform can print and mail one on your behalf, keeping the process electronic on your end.
Order.co simplifies this by paying every vendor according to their preference, then sending you one consolidated invoice.
Automated invoice processing and approvals
Manual invoice processing is the biggest time drain in a traditional AP department. A top-tier automation platform uses technologies like Optical Character Recognition (OCR) to extract data from invoices, reducing manual entry. It also allows you to configure custom approval workflows, automatically routing invoices to the right people based on department, amount, or vendor.
However, Order.co’s unique approach makes even this process obsolete. Because all purchases are pre-approved in a guided marketplace, the need for invoice matching and approvals after the fact is eliminated entirely. What you ordered is what you’re billed for—no discrepancies, no chasing down mistakes.
Centralized vendor management
Managing vendor information across different systems is a recipe for errors. A good automation platform provides a centralized portal for all vendor data. This is where you can securely store contact information, payment preferences, tax forms (like W-9s), and contracts. This creates a single source of truth that improves accuracy and compliance for all your procurement activities.
Real-time reporting and analytics
Visibility is crucial for effective financial management. Your chosen software should provide a dashboard with real-time reporting on key metrics like payment statuses, days payable outstanding (DPO), and spend by category or vendor. These analytics empower you to make data-driven decisions, optimize cash flow, and improve your financial forecasting.
Invoice Tracking Template
Download the invoice tracking template to avoid costly mistakes, clarify financial patterns, and track spending throughout the year.
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How Order.co goes beyond simple payment automation
Order.co streamlines the entire purchase-to-pay lifecycle, not just the final payment. By centralizing purchasing and automating approvals before an order is ever placed, the platform eliminates the root causes of accounts payable friction and gives you total control over company spend.
Unify purchasing and payments in one platform
Most AP automation tools only address problems after an invoice arrives. Order.co starts at the very beginning of the process: the purchase itself. It provides a single, guided marketplace where your teams can buy everything they need from any vendor—all within your pre-set budgets and approval rules. This approach to centralized purchasing prevents rogue spend and ensures every purchase is compliant from the start.
Eliminate invoices with Consolidated Billing
Imagine reducing hundreds or even thousands of vendor invoices down to just one. That’s the power of Order.co’s Consolidated Billing. Order.co pays all of your suppliers directly on your behalf. At the end of your billing cycle, Order.co sends you a single, itemized invoice for everything your company purchased. This revolutionary feature dramatically reduces the workload for your AP team, freeing them from the tedious tasks of processing, matching, and paying countless bills.
Gain total control and visibility over spend
With every purchase and payment running through a single platform, you get unparalleled visibility into your company’s finances. Track spending in real time against budgets, analyze purchasing trends across departments and locations, and make smarter strategic decisions. Order.co provides finance leaders with the line-level detail and control they need to optimize costs and scale operations with confidence. This is the foundation for true spend efficiency.
Start your transition away from manual AP today
Begin your transition from manual AP by assessing your current challenges, exploring modern automation platforms, and scheduling a demo to see firsthand how a unified system can transform your operations. Moving away from manual check writing is one of the most impactful changes you can make to improve your company's financial health and operational efficiency.
By choosing to automate supplier payments, you can save money, reduce risk, and empower your finance team to focus on strategic initiatives that drive growth.
Ready to see how Order.co can simplify buying and payments for your business? Schedule a demo today.
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