Far too many businesses are held back from scaling their business due to the complexities surrounding payouts. Having a proper infrastructure for making seamless payouts is crucial since it helps you save several man-hours and avoid delays & errors.

Unexpected delays in payouts can hurt businesses that have fewer cash reserves or credit to rely on. Also, it becomes challenging if a business sticks to a manual process for paying vendors, customers, suppliers, etc. 

In this article, we will discuss the different challenges of doing manual payouts and how you can get rid of them with solutions from Zwitch.

Challenges in doing manual payouts

Businesses make several vendor payouts every month. Typically, the entire manual vendor payout process is extremely tedious, and many problems arise solely because of the manual work involved. 

Let’s look at some of them.

Time-consuming process

Doing a vendor payout manually is a time-consuming process. You need to start from scratch — adding them as a beneficiary, wait for the cooling period to end, and then make a payment. On top of that, multiple account numbers and payment details bring many errors that might lead to delayed or wrong payments. It can become even slower if you have new vendors.

Complicated Excel sheets

Most of the businesses maintain their records as Excel sheets. Maintaining excel sheets as records work well when you have a limited number of vendors. Even if you are working with just 15 to 20 invoices, it will grow as your business does. However, once your vendors start growing, excel sheets start to get complicated.

Tedious manual reconciliation

Businesses have to constantly keep an eye on the due dates of invoices & regularly reconcile accounts of the payments received from vendors. This can be a long process and are prone to errors due to less real-time visibility.

All these problems associated with payouts make it more like solving a jigsaw puzzle. It isn’t joyful as it takes away countless productive hours from you and your finance team. They end up spending a lot of time on this repetitive process that occurs every month. 

There are ways to automate your payouts by removing manual activities with the help of technology. We will come to that later in this article.

Why does your business need to automate payouts?

Automation is the need of the hour. In this dynamic and cut-throat competition, you cannot afford to lose ground just because you are anxious to adapt to change. Sticking with the conventional approach will hamper growth and may kill your business in the long run.

The payout requirements of businesses are distinct and complex, and it needs an effective payout solution to prosper. 

Here are some reasons why you need automated payouts for businesses:

Quicker Payment Cycles

For any business, time is the most valuable asset. An automated payment system facilitates a faster payment cycle, making scheduled payments for the vendors and customers without any delay. It also eliminates the need for manual invoicing or bill processing, thus saving ample time and effort. Consequently, the administration or finance team spends less time in the invoicing process and gives additional time to focus on other essential areas.

Reduction in Errors

With lots of manual data entry, while you do payouts, there is always a high possibility of making mistakes. Even accounting errors like duplicate payments or overpayments can creep into the system. By automating payouts, the management increases its efficiency, recognises the inconsistencies, and gets discrepancies resolved quickly.

Improvement in Employee Productivity

Payment automation is generally cost-effective, saving a lot of money for the business. It helps management free up staff involved in the payment department and work on another project. Further, automated payouts streamline the process and help in optimising the cash flow of the business.

Monitor Compliance

If you have a lot of paperwork, then there are chances that your invoice might get lost. This will eventually lead to untimely payments, mismanaged records, and so on. With the advent of automated payouts, businesses can now monitor the mandatory compliance regulations and regularly track the audits and billing processes. This ensures an overall control of the payout system and proper safety.

Increased Process Visibility

While you do manual payouts, it makes it nearly impossible to see the entire process in a single sheet. But once you automate payouts, you can apprehend your business finances in one place. Having visibility on your payouts helps you make the right decisions and maximises the scale of operations.

Payouts With Zwitch

Zwitch’s Payout APIs help businesses automate payouts to maintain a reliable cash flow in operation, enhance invoicing and the payments process, and save time and effort.

There are various benefits while you use Zwitch Payout APIs –

  • Zero time  – You can automate instant payouts for single or bulk payments
  • Write rules for Payouts – Businesses can use Zwitch Payouts API to seamlessly trigger payments to multiple beneficiaries based on the rules defined in your system. It could be a time-stamp or any other criteria. And only if these criteria is met, the payouts happen. 

For example, you could automate payouts so that it happens automatically on the first day of every month by 11 AM.

  • Mass payments in one go – Zwitch Payout APIs enable you to make multiple mass payouts in a day. 
  • Cooling period reduction – Zwitch APIs reduces the cooling period to just a few minutes. If you were to do it via a bank, it would have taken you more than 30 minutes just to add people as beneficiaries. Zwitch lets you save time on adding beneficiaries. 
  • Direct payment from the current account –  You can also start making direct payments from your linked current account
  • 24×7 Payments – You can make payments from anywhere, anytime, even on bank holidays and weekends

All it requires is integrating with the Zwitch Payout APIs. You can easily sign up on Zwitch and get API keys. Now you can start building your product. You can test it and move it from the sandbox to go live in less time.

Automate payouts & scale your business operations

Automation is the need of the hour for India’s businesses. With the right technology, business owners can focus more on customers and let the technology take care of processes. Zwitch APIs will make it easy for you to automate & schedule payments and give you real-time updates and reports. Zwitch onboarding solution makes payouts effortless for a business. At Zwitch, we’ve left no stone unturned to ensure that companies develop their best products using our APIs.

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Sarath Babu

Content Marketing Manager, Open


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