How to set up automatic bill payments for your business

For businesses of any size, managing bills can be time-consuming, especially as monthly expenses grow. Unfortunately, these cumbersome processes can become a big hassle as both your business and bill pay checklist expand.

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That’s why setting up automatic bill payments can streamline this process, simplifying expenses and boosting efficiency—no matter your business's size. Small businesses can easily manage fixed costs like rent or software; mid-sized companies save valuable time by automating vendor and lease payments; and large businesses streamline complex invoices and vendor management with AI tools.

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While each business has unique needs, the universal benefits of tailored automation help businesses of any size stay agile, reduce errors, and shift from repetitive tasks to growth-focused priorities.

What to look for when setting up an automatic bill payment system

Choosing the right automatic bill payment system can streamline your finances, save time, and improve security. Here are a few essentials to keep in mind:

• Security and compliance: Prioritize a system with advanced security features and compliance with industry standards. Protecting sensitive payment data should be non-negotiable.
• Ease of integration: Choose a system that seamlessly integrates with your existing accounting and ERP software. Smooth integration minimizes manual data entry and ensures that payments, invoices, and records stay in sync.
• Flexible payment options: Look for flexibility in payment methods and scheduling options, like card payments, ACH, and wire transfers. This allows you to handle both fixed expenses and variable costs effortlessly in your billing cycle.
• Automation capabilities: Opt for a platform with robust automation features, such as invoice scanning, two-way matching, and automated approvals. These tools can save significant time and reduce errors, especially as your business grows.
• Transparent costs: Make sure you understand any transaction or cancellation fees upfront. A clear pricing structure helps you plan for costs without surprises.

How to set up automatic bill payments for your business

When setting up recurring payments, the steps can vary depending on the payment processor or platform. To set up automatic payments for your business, here’s a general approach that works across most systems:

1. Evaluate your business needs: Begin by identifying which bills make sense to automate based on consistency, frequency, and priority. Common options include software subscriptions, utilities, and other recurring expenses.
2. Research payment gateways with automatic bill payments: Look for a trusted payment processor or merchant account that offers automatic bill payments as an option, as well as other features you need, such as data encryption and customer data protection. Choose a provider that aligns with your business model and budget and supports other payment methods you need.
3. Set up the automatic payment method: Once you've selected a provider, gather necessary payment details (such as bank account or corporate card information) and set up your automatic payments in the provider’s portal. Many systems allow you to easily select an “autopay,” “recurring payments,” or “recurring billing” option for each vendor.
4. Update your customer communications: Let your customers know that recurring payments are available by updating your invoice terms or adding a note to each invoice. Alternatively, consider sending an email notification to customers about the new option, emphasizing the convenience of using auto payments to improve customer retention.
5. Monitor and review: Once everything is set up, monitor your accounts regularly to make sure payments are processing correctly and there are sufficient funds in your payment account. This proactive step allows you to avoid any unexpected issues down the line.

Why setting up automated bill payments are beneficial

It’s hard to overstate the many advantages that come with switching to this form of payment solution for finance automation. To illustrate, here are some key benefits, using our Ramp platform as an example of how automated bill pay can transform your accounts payable process.

Eliminate manual data entry

Even skilled AP teams can make errors during manual data entry. Platforms like Ramp automate the entire accounts payable workflow, making sure every bill is accurately recorded, approved, and paid on time. Automation reduces manual work and lowers risk for your AP team.

Time savings

Research from IFOL shows AP pros spend 56% of their week manually processing invoices. With the help of automated tools like Ramp Bill Pay, this is streamlined by letting teams simply upload invoices, plus they sync effortlessly with accounting and ERP solutions to handle purchase orders and amortization.

Increased security and controls

Fraud is a real threat—over 80% of financial professionals reported fraud attempts in 2018. Our Bill Pay tool at Ramp provides stronger protections, identifying duplicate invoices, routing approvals, and performing two-way matching with purchase orders to keep your accounts safe.

Simplified payment processes

Many AP teams still rely on multiple systems or even paper checks. With Ramp Bill Pay, all payment methods—checks, cards, ACH, and wire transfers—are consolidated on one platform, streamlining domestic and global vendor payments.

More consistent on-time payments

Even the most complex manual tracking system increases the likelihood that your accounts payable team may inadvertently miss a payment. Automated bill payment platforms like Ramp give you full visibility into the status of every outstanding invoice. This gives accounts payable the ability to accurately forecast cash flow and makes sure that bills are paid when they want them paid.

Which businesses can benefit from setting up auto bill payments?

When accepting payments from customers, autopay benefits a wide range of businesses, from small startups to large enterprises:

• Small businesses, like law firms, dental practices, and consulting agencies
• Mid-sized businesses, such as regional retail chains, hospitality groups, and medical clinics
• Large businesses, including manufacturing companies, national franchises, and large e-commerce platforms
• Subscription-based businesses, for example, SaaS companies, gyms, and media streaming subscription services
• Service industries, such as accounting firms, marketing agencies, and IT support

Automated Payments: An example with Ramp

If you’re a QuickBooks to Xero user, you can quickly and easily process your bills with Ramp’s software after your setup. Here’s a walkthrough:

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1. Step #1 - Upload an invoice or forward it to our dedicated inbox: With Ramp Bill Pay, all you have to do is upload an invoice or email it to our inbox. Then just sit back and watch the magic happen. Our AI will automatically pull all relevant information from your invoices like vendor names, line items, and due dates.
2. Step #2 - Review flags for duplicate invoices: Our system will automatically flag any invoices that appear to be duplicated, saving you from costly errors.
3. Step #3 - Receive vendor bank account information: If the vendor did not list their ACH information on the invoice, Ramp will contact them automatically and remind them to send details on their bank or financial institution to complete payment processing. For even more peace of mind, Ramp will release payments even if the vendor submits their payment details after the due date.
4. Step #4 - Route bill for approval: Bill payments then get routed for approval based on spend amounts, ensuring that the right people have visibility. Once the payment is approved, it’s scheduled to be paid on the due date. No more daily log-ins by finance heads to release payments.
5. Step #5 - Pay bills by card, check, or ACH: When you pay bills with your Ramp card, you save an average of 5% by spending less time and money across your entire business. And if a vendor doesn’t accept card payments, you can opt to pay via ACH. Once the vendor passes our risk check, payments can be issued in as little as two business days.
6. Step #6 - Automatically sync bills with QuickBooks and Xero and categorize line items: Ramp automatically adds new bills to your general ledger, increasing your real-time visibility into your business expenses. Ramp even matches line items to the relevant GL accounts, saving you even more time.

Make automated payments easier with Ramp

‍Paying bills can be a huge pain point for businesses. But with Ramp’s corporate card and bill pay, that process has become much more manageable. Now you can pay your bills 15x faster, saving your business time and money.

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Let Ramp do the work. Move on from manual processing and pay your bills with Ramp Bill Pay.