Enterprise resource planning (ERP) in the digital age increasingly needs to embrace integrated payments.
EVO B2B Vice President of Product Management Nikki Nguyen told PYMNTS that integrating payments into ERP software and tying them together with other back-office functions — such as accounting, payroll or the accounts receivable departments — can benefit companies across many verticals.
Problems with Non-Integrated Payments
When a company does decide to integrate payments into its ERP system, the primary reasons for doing so, according to Nguyen, are efficiency and accuracy.
“Without the ability to integrate payments into the ERP system, companies would have to manually enter in payment data multiple times in different systems,” she said.
Those processes tied to manually entering payment data into the ERP system waste time and resources. Manual processes also open what she termed “large windows for human errors.” To address those risks, back-office teams would have to spend even more time reconciling payment data to ensure that information is correct.
How Integrated Payments Can Help
At a high level, she said, with integrated payments, “everything is, essentially, automated.” The payment data is synced into the ERP system, and the payments are “automatically recognized” against outstanding invoices to provide real-time accounting reports.
Integrated payment processing solutions, similar to what companies might refer to as a customer portal, provide end customers with the ability to pay online. This helps companies speed up the collection process and reduce late or missed payments, which, in turn, can improve their overall cash flow.
The actual integrations are made easier with the advent of the cloud and can facilitate omnichannel access with centralized data and easy-to-use interfaces.
“Cloud technology offers immediate access to software updates and … feature enhancements,” she said.
In addition, cloud-based integrated payment solutions can aid businesses with data security.
Payment card data is among the most common type of data targeted by cyber thieves. Cloud technologies have made it possible for developers to integrate payments processing with applications such as those offered by EVO “without having to come in contact or even touch the sensitive data in the first place. By leveraging these cloud technologies, businesses are able to use integrated payment applications and at the same time offload their payment [card] security requirements to [secure cloud] service providers.”
Advantages for Businesses
ERP integrations, Nguyen said, level the playing field between small- to medium-sized businesses (SMBs) and larger enterprises. Smaller firms tend to have relatively limited resources, at least in terms of labor. With smaller companies, “their staff consists of a much smaller team, so they will gain the most value from not having to hire additional employees to help manage payments.”
On the other side of the equation, larger companies with complex business processes will see value from not having disconnected payment systems by integrating payments across all payment channels.
“By eliminating the need for manual entry and reconciliation of payments, companies and their staff regain the ability to focus on more important core business functions,” said Nguyen.