8 Reasons to Update How you Pay your Freelancers, Vendors, and Suppliers
Digitizing your payment process can help you save time, improve cash management, and reduce errors.
As companies like yours adapt to operate with more digital tools and automation, taking accounts payable online with a vendor management system is the next logical step. Here are 8 reasons switching to a digital solution like Liquid can help you improve accuracy, save time, and improve cash management.
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See what’s ahead
Especially in industries with tight margins, it can feel like there is no room for error in payments. With Liquid, you have a clear and unified view of end-to-end accounts payable process and status. With just a simple click, you can view past payments to a specific vendor or view all payments sent from your business.
Timely and accurate payments
Invoices from your vendors, suppliers, and freelancers should always be connected to work orders (WOs) or purchase orders (POs). Linking invoices and WOs allow you to quickly verify the accuracy of invoices and enable timely payment. For example, the total amount billed by a vendor may exceed the amount specified in the WO. With Liquid’s automatic verification, this discrepancy between invoice and WO would be automatically reviewed and flagged — saving you money and time.
Schedule payments for cash management
When you use Liquid to pay freelancers and suppliers, your invoice payment terms are set at the Master Service Agreement level with each of your vendors, freelancers, and suppliers. This means that all invoices sent to you on Liquid have your payment terms included on each invoice. If you have set your payment terms to say Net 30, then you can schedule your payments to be made 30 days after the invoice date — allowing you to optimize your cash flow.
Streamline your day
As a business owner, you’re always trying to maximize your time. While you stay on top of supplier issues, shifting regulations, employee issues, and customer requests, Liquid helps automate your accounts payable to make the entire payment process faster and easier.
No more manually creating reports of your vendor payments, accounts payable, or forecasts of your upcoming vendor expenses. With Liquid, these reports are generated automatically and are always available within the Reports section of your account. The more accurate your records, the better you are able to perform a financial analysis or projection. Having this objective view of your financial situation enables you to make well-informed decisions for your company’s future.
Daily responsibilities can change at a moment’s notice when you are a business owner — and when you aren’t in the office, it can become more difficult to get payments sent. With an online dashboard, Liquid ensures you can always view invoices — and reports — as well as make payments from home, the office, or anywhere anytime.
Simplify tax filing time
Tax time is never fun, but when you onboard vendors with Liquid, you automatically collect W-9 forms from your freelancers and vendors. Come January, you can download a secure, encrypted report of your W-9 and 1099 data — with these reports, you’ll be able to send out 1099s in no time.
As a business owner, you often want to delegate responsibilities. As businesses shift to more distributed and remote work, Liquid allows for simplified team collaboration with specific user roles and permissions. No more sharing passwords with your accountant or other employees. They’ll only see what you want them to see.
Switching to Liquid
After years of manually managing paying your freelancers, vendors, and suppliers, you’ll be happy to move to a digital vendor payment solution with automated workflows. Switch to Liquid and request a demo to set up and automate your accounts payable processes today!
Ready to automate your accounts payable process and workflow? Try Liquid today.
Note, we are not providing legal, tax or payroll advice. Please consult your legal, tax and payroll professionals. These are simply to serve as guidelines based on our own experiences.
Updated: September 29, 2020
Quick note: This is not to be taken as tax advice or legal advice or payroll advice. Since tax rules and laws change over time and can vary by location and industry, consult a CPA / tax advisor and/or attorney for specific guidance.