How To Help Vendors Instantly See the Benefits of Using Paymaster by FourQ
Designed to automate and centralize a corporation’s global vendor invoice management process, FourQ’s Paymaster solution strengthens and simplifies vendor relationships and services with on-time payments. However, given investment is required from vendors before they realize any benefits themselves, multinational companies must consider how they encourage vendors to adopt centralized and consolidated invoicing. They need to educate vendors to change how they are conducting business with the corporation so that they too can realize the benefits of a centralized process.
For this to happen, corporations must be aware that they are seemingly asking the vendor to do a lot of work. Plus, as part of centralizing invoicing, corporations will be asking for discounts (often deep). They are asking vendors to modify their systems and processes to deliver invoices in a consolidated electronic stream. They are also telling vendors that they will short-pay anything incorrect and require speedy dispute resolution. What could be easier?
The challenges of gaining vendor buy-in for consolidated invoicing are clear. However, with the right approach, it is easy to convince vendors that, even though some upfront costs are involved, the return on that investment is significant due to timely payments and operational savings for the vendor’s customer service and billing operations.
Promoting The Value of Paymaster to Vendors
The moment a corporation decides to use Paymaster to manage its bill payment process, FourQ helps vendors fully understand how they will save and improve outcomes in their operations. In other words, payback on any investment needs to be quantified and definitive. For example, large vendors are shown the value of Paymaster in ways that guarantee:
- No printing numerous bills and mailing them out to different sites around the country
- No tracking multiple payments coming back
- One dedicated relationship manager with whom to handle query resolution, dispute management, and collections for the entire enterprise
- One single consolidated payment against the monthly invoice
- 90% reduction in aged receivables
- No misapplied or missing payments
- 100% tax compliance
To achieve these valuable benefits, vendors will negotiate volume discounts across the entire enterprise, not just individual business units. Vendors will also deliver invoices in a consolidated electronic stream (no business-level billing and no paper). Additionally, each vendor provides the multinational the opportunity to audit everything and short pay anything that isn’t correct.
Consolidated billing and invoice auditing through Paymaster also delivers multinationals significant improvements to its dispute management and query resolution processes. That’s because Paymaster audits examine not only what is being charged, but inventory and usage as well. If billing doesn’t match inventory, only a portion of a bill will be paid.
Paymaster puts the onus back on the vendor to prove that its numbers are accurate and should be paid. This saves Paymaster clients money on inaccurate invoices and, when a disputed charge is found to be valid, the business can update its inventory. This also encourages vendors to track inventory levels accurately.
Without a solution like Paymaster, the multinational must go through a process to get overpayments back – often in the form of contractual service credits and rebates. The more efficient the dispute process, the more can be negotiated, and the better the vendor relationship can be managed over time. Tricky service credits often flow through the same process. Fortunately, Paymaster includes a mechanism to recover service credits and tie those credits to the applicable service.
Having a single point of contact, rather than allowing queries and disputes to be spread across multiple businesses, significantly improves the efficiency and effectiveness of these processes — a benefit to the corporation and its vendors.
The corporation can also rely on Paymaster to analyze vendor performance in terms of both accuracy and resolution. That’s because the bill payment solution keeps track of all dispute tickets. It also establishes a very fair dispute resolution process that benefits the vendor by reducing or eliminating the revenue assurance activities they undertake. Every aspect of an invoice is audited, so the corporation and the vendor are alerted whenever over-or under-billing occurs.
Be Confident of Success with Paymaster
Paymaster benefits both ends of the client-vendor relationship when moving volume onto the platform. For example, one of a multinational’s telecom vendors, which analyzed the impact of Paymaster, found:
- More Timely Payments – 90-day+ aging was at ~1.7% for transactions on the Paymaster platform vs. 90 day+ aging of ~72% for transactions that were not being managed through Paymaster
- No Disputes – the Paymaster process resulted in a very low volume of billable line items disputed, with little “no match” fallout requiring investigation and resolution
- Low Overhead – Allocation of resources to billing investigation and resolution became insignificant, and the processes established for resolution were working well
- Quick payback – Receipt of on-time payments coupled with automation of audit capability and invoice validation was well worth the initial system setup
In short, when it comes to using Paymaster from FourQ, business units and vendors alike are delighted by the competitive advantage it delivers. Corporations are using this solution as a service to confidently overcome intercompany billing challenges common to all multinational companies. They are using it to successfully streamline the complexities of their supply chain and centralized services models, i.e., cross-border tax compliance, indirect tax (e.g., VAT, GST, etc.) recovery, diverse ERP landscapes, manual payment processes, currency and FX restrictions, and the ever-changing regulatory environment. And they are dramatically improving all of their vendor relationships, too.
Solve Your Vendor Challenges with FourQ
Built by finance, accounting, and tax experts, FourQ deploys Intercompany Financial Management solutions that streamline the global operations of the world’s largest companies. FourQ helps multinational companies increase operational productivity while saving millions of dollars annually through optimized intercompany billing and payment, tax leakage mitigation, and proactive tax optimization strategies. It does this by automating intercompany processing and seamlessly integrating it with global vendor invoice management.
FourQ is more than technology; it is a solution-as-a-service providing continuous operational support and expertise across tax, intercompany billing, vendor payments, and financial transformation. FourQ keeps up with the evolving regulations globally and automatically takes care of each tax administration’s requirements.
Schedule a FourQ demo today.