So many of the expenses we have now – think your mortgage, car payments, utilities, cell phone, just to name a few –are automatically paid electronically. It’s one of the modern conveniences afforded us by technology we have come to take for granted.
As a business leader, have you fully accepted such simplicity in paying your organization’s expenses? The answer is probably “yes, but not always.” Chances are how you pay your FedEx and UPS invoices currently fall under the “not always” caveat. Instead, it’s done manually and ad hoc.
But there’s good reason to change that. Here’s why automating your parcel bill payment makes sense.
- Consolidate the payment of all your parcel shipping accounts.
- It’s not uncommon for companies, especially those with many accounts or multiple locations, to receive the equivalent of multiple invoices a day from FedEx or UPS. In fact, analysis shows our customers average 30 invoices a month over the past year.I know from personal experience the amount of work that requires. Frankly, it’s an inefficient use of time and resources when automated bill payment could do the work without the risk of errors or oversight.
- Establish a consistent process if you rely on multiple carriers – you use both UPS and FedEx, for example – or pay for multiple accounts.
- The challenge of paying so many invoices for multiple accounts is further exacerbated when multiple carriers – and payment processes – are involved, from different payment methods to varied due dates. Simplify. The. Process. It can be done, and by automating bill payment, you can adhere to each carrier’s preferred payment method without added effort to your team. Plus, you’ll have a “single source of truth” for your payment history.Put simply (my favorite word), by taking this step – really, it’s the path of least resistance – you can even end up with payment files that can be imported into your ERP to further end unnecessary data entry and the inherent human error that comes with it.
- Get more of the audit credits you’re due.
- By scheduling your payments to occur automatically, you can wait until later in each invoice’s specific payment window without risk. This matters when it comes to maximizing your refund credits.If you’re paying invoices immediately, or too early, you’re telling the carrier, “yes, these are accurate charges.” It’s easier for you or your auditor to ask for credits from carrier mistakes if you haven’t yet paid the invoice. (And, if you’re not auditing your shipping, we can help.”
- No more late fees.
- Over the past 12 months, VeriShip customers paid more than $2.7 million in fees for paying the carriers. That’s wasted money going down the drain. And there’s an easy remedy: scheduled parcel payment maximizes the time you have your money in hand while ensuring you’ll never be hit with a late fee again.
- Use FedEx? Short pay is a necessary evil that gets easier.
- You won’t have to make your best guess at accounting for your credits before you pay FedEx – also known as short paying your invoices. Parcel bill payment automation takes care of the math and ensures you don’t over or underpay the carrier. Timing is key: trying to reconcile invoices against payments can be tricky because FedEx adjusts the original invoice amount to reflect the approved credit.
- The convenience comes with more savings and operational efficiency at no added cost to you.
- The best news: consolidating and automating the parcel bill payment process doesn’t cost anything. Contact us at VeriShip to learn more.
Elaine is VeriShip’s Chief Financial Officer.