Supply chains span the entire globe, connecting suppliers and buyers across multinational networks. The sheer size of the supply chain and number of companies involved can make cash flow complex. Working capital can easily become trapped in the supply chain, limiting organizational operations and scaling.

Businesses can optimize their own cash flow, maintain simplified bookkeeping, and provide options for suppliers to do the same by partnering with a supply chain finance (SCF) partner. An SCF solution allows suppliers to get paid earlier without putting strain on buyers, and helps build stronger, more stable supply chain relationships.

What is Supply Chain Finance?

Supply chain finance, also referred to as supplier finance or reverse factoring, generally requires the buyer to have a higher credit rating than the supplier. The process is initiated by the buyer, not the supplier. The buyer places an order as usual and receives goods from the supplier, then is invoiced according to their agreement.

The invoice may be due on a 30- or 60-day net, meaning the supplier’s capital is tied up in the delivered goods. This can cause friction between the buyer and seller, especially if the buyer routinely runs out the clock on payments. Instability can cause delays on the supplier end if they cannot replenish their inventory in a timely manner.

Supply chain finance options allow a buyer to approve a supplier’s invoice, and confirm that the full amount will be paid when the invoice reaches maturity. The invoice is then presented to a third-party intermediary such as a bank or other financial institution for financing.

The supply chain finance partner pays the supplier early for their invoice and charges them a premium. When the original invoice matures, the buyer pays the intermediary the total amount originally due. This allows suppliers to maintain good cash flow, and buyers to maintain strong relationships with their suppliers.

The challenge to SCF adoption

The sticking point with supplier finance is the paperwork that must be conducted between the buyer and the SCF to manage all suppliers approved to receive a reverse factoring option. It can be one more series of steps to go through to get suppliers set up with a SCF partner, and manage both sets of invoices.

To reduce paperwork and multiple steps for successful SCF processing, SK Global’s Supply Chain Finance (SCF) module delivers complete and automated support throughout the supply chain finance process.

Streamlining SCF partnerships

The Supply Chain Financing module for Microsoft Dynamics 365 for Finance and Operations helps your company effortlessly:

  • Automate and streamline all communications with your chosen supply chain finance providers for hands-off operations
  • Manage all invoice settlements directly with your SCF providers rather than managing various payments to your original vendors
  • Support multiple types of settlement methods from one centralized dashboard to reduce errors or delays
  • Seamlessly integrate your new SCF module into your existing Microsoft Dynamics 365 Finance and Operations setup

Use case for the SKG’s SCF module

If your company makes a routine purchase from a supplier and receives a 60-day payment settlement window on the invoice, you have 60 days to complete payment, However, to maintain good relations with your supplier and support them to ensure they can restock before your next order, you may opt to connect them with your SCF provider.

Using the SKG supply chain finance module, your original invoice would immediately upload to your SCF partner, and you can opt to receive a notification stating whether the invoice was accepted for financing. From there, the SCF provider negotiates terms with your supplier independently, without further action required from you, and pays a discounted amount on the invoice through their own platform.

When the original due date arrives, the module automatically resolves the vendor’s original invoice and generates an invoice payable to your SCF provider, which is then paid by your accounts payable department.

Advantages of switching to SKG to handle SCF processes

SKG provides automatic notifications to the SCF provider when new invoices arrive from an approved vendor, and also manages receipt of notifications from the provider when the invoice uploads. Settlement notifications sent from providers are also monitored to prevent unhandled issues or missed rejected invoices.

For streamlined bookkeeping, the payable remains on the books with the original vendor during the original invoice term. On the due date, the original vendor’s is resolved and the invoice generated for the SCF provider. For multiple invoices due on the same date, aggregation by currency alone or vendor and currency is possible.

The Supply Chain Finance module can also work with SCF providers to handle various methods of settlement, including due date based settlements, file based settlements derived from electronic invoices sent by the provider, and settlements without moving the payable on the due date (if the SCF partner’s bank account has been associated with the original vendor.)

Are you ready for reverse factoring? Contact SK Global today to learn more about our Supply Chain Finance Module.

 

As disruption across all industries continues to change how the world does business, two key areas of concern remain the focus of treasury and finance departments for enterprises and small and mid-sized businesses (SMBs) alike. The highest risks for almost all companies come from internal and external sources, and they threaten the financial security and consumer trust organizations are built on.

Internal fraud

The highest risk any business runs relates to those participating in or running the business. The median loss from internal fraud is $150,000, according to the Report to the Nations prepared by the Association of Certified Fraud Examiners (ACFE), but 23% of cases result in a loss of more than $1 million. The same report notes that three types of fraud are the most likely to contribute to financial loss to an organization caused by someone within the organization:

  • Asset misappropriation (present in 83% of incidents with a median loss of $125,000).
  • Corruption cases (present in just over a third of cases with a median loss of $200,000).
  • Financial statement fraud (present in less than 10% of cases with median losses of close to $1 million).

The person perpetrating the internal fraud also has a direct impact on how severe the losses are, as well as how long fraudulent activity goes undetected.

The average employee only manages to cause a median loss of around $65,000. At the managerial level, this figure nearly triples to $173,000 while owners and executives can get away with more than $700,000 in fraudulent takings. Most instances of fraud last around 18 months, with lower losses correlating to shorter time periods. Fraud lasting more than five years can rack up losses of more than $800,000.

Contributors to internal fraud

Lack of internal controls, or internal controls that could be easily overridden, are common factors in most internal fraud cases. In larger organizations, corruption cases are more prevalent, while skimming, cash larceny, payroll, and check tampering are more likely in smaller organizations. However, median losses are roughly the same regardless of the size of the company, although smaller businesses obviously have a harder time recovering.

Data breaches

The second looming risk for companies is the increased likelihood of data breaches as businesses scramble to improve cybersecurity in an age of distributed workforces. As employees, devices and networks become decentralized, more access points appear, allowing bad actors to work their way into an organization’s databases.

According to a study from Walden University, direct financial theft from an institution at the hands of hackers is much less likely than the theft of consumer data, which can then be leveraged for financial gain. Financial losses can be even larger when distributed across a wide swath of consumers, and the damage to the breached company can be even more significant than that caused by an internal breach.

Loss of consumer data can result in fines, but the bigger blow comes in the form of loss of consumer trust. PwC notes that only 1 out of 4 consumers think that businesses handle their data responsibly, and only 12% trust the companies that have their data more now than they did a year ago. More than 85% say they will take their business elsewhere if they think a company isn’t handling their data responsibly. This is particularly true for financial data, such as the information that passes through a point of sale (POS) system during a purchase in a store or online using a credit or debit card.

Protecting your company from internal and external threats

Treasury Risk Management Software from SK Global Software can help improve compliance and security within your organization, reducing your risk of internal fraud and protecting consumer data. Learn more about our banking and treasury solutions. Get in touch with us today.

 

Electronic invoicing can take your business to the next level when it comes to accounting, streamlining processes for you and your payees, and improving efficiency across the board. Making the shift from paper invoicing to digital invoicing is the first step, but completely electronic invoicing will save time on an even more significant scale, freeing up your accounting department to focus on more pressing tasks.

Electronic invoice basics

Electronic invoicing encompasses all steps involved in a process’s life cycle, and it covers invoices, debit and credit notes, purchase orders, remittance slips, and payment terms and instructions. From start to finish, an electronic program creates and sends documents as well as recording payments and balancing financial accounts.

That means no more tedious data entry or error-prone matching of paper documentation. Instead, all manual processes are computerized to improve efficiency and reduce error margins, allowing for higher accuracy in your bookkeeping and greater productivity across multiple departments.

Benefits of e-invoicing

An electronic invoice, or e-invoice, can provide the following advantages:

Reduced costs

Optimizing this aspect of your business can result in enormous cost savings, both in materials and time. Get rid of paper, printer and ink costs, and reduce overhead by shifting invoice-related tasks to a high-end software program designed specifically for smooth, swift operation and high levels of accuracy. When employees can focus on higher-level tasks, job satisfaction goes up and employee churn goes down, saving your organization even more money.

Improved efficiency

E-invoicing speeds up the entire financial documentation cycle, reducing time to invoice, time to payment and reconciliation of payments internally. When all documentation is handled by a centralized system, matching and reconciling each step of a transaction with all components of its virtual paper trail is simplified. By cutting out the data-entry process, time associated with financial accounting is significantly reduced. Information from electronic invoices can be immediately uploaded into your accounting systems and safely stored for future use.

Enhanced accuracy

Automating processes involved in invoicing reduces the chance of human error to infinitesimal levels. The less systems depend on data entry, the better — both from an operational standpoint and the perspective of security. When your invoicing is handled in a mostly closed system, you protect the accuracy of data and prevent accidental or intentional tampering. The multiple touch points present for manual data entry — invoice creation, customer payment, reconciliation — increase margin of error, but reducing these steps to a single initialization helps minimize risk of error.

Greater compliance

E-invoices also make it easier to comply with government regulations and to manage global tax issues when operating in more than one country, according to Gartner. When processes are automated, steps don’t get skipped and data can be better secured.

Easier payments

An e-invoice makes paying faster and easier on the payee. A secure link can be sent via email, for one-click-access and fast, efficient payment processing. Once a payment is complete, the system automatically marks it as paid, reconciles the books and closes the transaction file. Leveraging tools like email makes the payment process more user-friendly and effective, and can reduce time to payment.

Lower environmental impact

Shifting away from paper invoicing can decrease your business’s footprint and create opportunities for positive public relations. By slashing the amount of paper, ink, toner and other printing-related materials you use, you can “green” your company and improve your organization’s relationship with the environment.

Shifting to electronic invoicing can positively impact multiple areas of your business and provide a way to support and improve how your business records the movements of money. Electronic Invoice Presentment from ePay Advantage takes your accounting department to a higher level of optimization. Contact us to learn more today.

 

In today’s global economy, businesses can stand out among a sea of competitors by effectively leveraging their cross-border expertise. Important attributes like intercultural communication, streamlined logistics and skillful coordination are essential.

Alongside these factors, multicurrency payment processing represents a distinct advantage for international and domestic businesses. Even with the challenges that come with multicurrency support, the ability to offer this service can prove crucial in the current business landscape. Keep reading to learn more about the benefits and challenges of multicurrency support.

Benefits of providing multicurrency support for payment processing

The fact is that multicurrency support brings your business one step closer to enjoying frictionless access to customers and vendors in international markets, broadening your base of potential buyers and suppliers.

Leverage the support of international vendors in your supply chain

Multinational companies often employ international supply chains, but raw materials and manufactured goods aren’t the only things crossing borders. Today, the services provided by knowledge workers, creative professionals and others are often used to support global enterprises. Sometimes these individuals are employed directly by transnational enterprises, and other times they are independent contractors or employed by an international subcontractor.

Multicurrency vendor payments make it possible for large companies and those engaged in international business arrangements to streamline their operations while facilitating convenient payment for their global business partners.

Expand your customer base online

In addition to benefiting from the assistance of international vendors and suppliers, multicurrency payment support can help businesses appeal to an increasingly international e-commerce market.

A 2020 report from eShopWorld using PayPal data concluded that 17% of e-commerce sales would be attributed to cross-border transactions by 2023. Even today, many online shoppers at least sometimes purchase goods internationally. In fact, the report noted that 70% of people in the Middle East who purchased items online at least sometimes bought from businesses abroad.

Multicurrency payment support helps eliminate friction to encourage cross-border transactions, increasing the global market potential for e-commerce companies.

Provide added convenience as a tourism-related business

E-commerce businesses aren’t the only enterprises that stand to benefit from better multicurrency payment support. Brick-and-mortar shops, as well as service industry companies, like those in the hospitality, dining and entertainment sectors, could also stand to gain.

Companies that rely on tourism income or the support of international business travelers can easily appreciate the benefit of accepting digital multicurrency payments. By doing so, they provide a more convenient experience for their customers, who would otherwise have to handle fees from their home financial institutions or manage foreign cash. In fact, cashless travel seems to be fairly appealing for many individuals. According to a 2019 survey of Americans who traveled abroad, Visa found that respondents said they preferred using credit cards for foreign payments 48% of the time. Part of the reason for this number could be that 63% felt having cash on their person could make them a target for theft.

For international customers who don’t have multicurrency accounts or cash, accepting digital payments in their home currency could be a significant convenience.

Challenges of multicurrency payment processing

While the benefits of multicurrency payment support are substantial for businesses, there are some potential hurdles, too. Fortunately, the right software solutions for payment processing can help mitigate these issues.

Managing exchange rates

The values of different currencies regularly rise and fall relative to one another. Managing multiple currencies means that businesses have to be careful to monitor for the best exchange rates in order to avoid losses and maximize the benefit of offering multicurrency support for vendors and customers.

System integration

Multicurrency support entails several different integrations, which can be a complicated undertaking. Also, as with all financial software solutions, security is of paramount importance for system configurations that process multicurrency payments.

Businesses need to be able to count on streamlined integrations with:

  • Currency trading and settlement platforms.
  • Accounts payable payment journals and trading platforms.

Using manual processes and disparate, isolated systems could lead to human error, security vulnerabilities or limited access to the best exchange rates. All of these problems could make it more difficult to take advantage of the significant benefits made possible by offering multicurrency payment support in the first place.

Fortunately, FX Settlement Automation from SK Global Software allows companies to achieve these advantages while providing seamless integration for business customers who use Microsoft Dynamics 365 Finance and Operations or Microsoft Dynamics AX. This solution affords users greater visibility into current exchange rates as well as an easy setup and seamless integrations. Customers can also breathe easier due to the secure creation, storage and transmission of payment files made possible by this solution.

If you’re ready to reap the benefits of multicurrency support, find out how FX Settlement Automation from SK Global Software can help.

 

Every month it seems like there is a new report of personal information like credit card numbers being released onto the web. Companies that improperly store credit card information from their customers put millions of people at risk, forcing users to close cards and request new ones. Most consumers are becoming more aware of the risks of giving their credit card number online or over the phone.

It’s vital that your business is compliant with Payment Card Industry Data Security Standards (PCI/DSS). If you improperly collect or store customer data, you could be putting the future of your company at risk.

Understanding PCI/DSS

The security of cardholder data is key to building and preserving customer trust. It’s also a legal obligation.

Who must comply?

All entities that store, process or transmit cardholder data must maintain payment security. This applies whether you are a small sole proprietorship or an enterprise company: If you take credit cards or other electronic payments, you must comply with PCI/DSS.

What are the standards?

Guidance for maintaining payment security includes the following steps:

  • Building and maintaining a secure network with a firewall configuration capable of protecting cardholder data.
  • Never using default passwords, and maintaining a protocol for frequent password changes company-wide.
  • Protecting stored cardholder data (tip: use solutions that eliminate data storage altogether).
  • Encrypt transmission of cardholder data (tip: use tokenization to eliminate transmission of actual credit card numbers).
  • Install and regularly update anti-virus software or programs to protect your back office (and require work at home staff to comply as well).
  • Restrict access to cardholder data by applying strict permissions across your organization and using tokenization to eliminate physical access.
  • Test your security systems and process regularly, and maintain an employee and contractor policy for information security.

COVID-19 and a distributed workforce

With millions of people now working remotely, and back office workers not likely to return to corporate offices anytime soon, companies are finding new weak links in the chain of payment processing. While corporate networks aren’t foolproof, they still provide more protection than the average remote worker’s connection to the internet.

When sales and customer service staff work from their own homes, the risks of compromised customer data skyrocket. If your sales staff or post-sales support teams are asking for credit card information or verifying information your company could be at risk.

Intercepting data

Keyboard loggers can recognize and copy credit card numbers when they are typed in by a representative. Most home workers don’t have the level of security provided by a corporate office, and even corporate-level of security can still have vulnerabilities.

Numbers given over the phone can be recorded and stolen. The phone, the network or even devices in a worker’s home (like Alexa) could be hacked — there are even reports of Roombas being turned into listening devices and used to steal credit card numbers.

Even information that is “encrypted” can be intercepted as it travels across a network, and decrypted by packet sniffers. Sniffers can steal credit card numbers and customer information that has been typed and transmitted, or decode conversations sent over the internet on VoIP phone systems.

How do you make customers feel confident that their credit card information is safe, and more importantly, how do you help ensure that the information actually IS safe?

Protecting customer data, simplified

The best approach is to not store customer credit card information at all, and to institute ways of collecting information that keeps the risk on the consumer’s side and away from your corporate office. Credit Card Advantage with PayLink and WalletLink allows you to accept electronic payments from customers without ever actually receiving their actual credit card number.

When you use PayLink or WalletLink, your customer is presented with the ability to enter their credit card number on their own computer. A single-use “token” is generated which is sent to your back office when the payment is submitted. This eliminates the weakest link in most online payment system chains, by ensuring that you never have the customer’s actual credit card number at all. You can even customize your system to choose when preauthorization or payment takes place.

Our payment processor is Mastercard and VISA certified, and the PayLink/WalletLink options can be used by your distributed workforce. There’s no more worrying about the safety of a customer’s credit card number, because you never access or store it. Tokenization lets you eliminate the weakest link in the payment chain by never exposing your back-office to the responsibility of protecting the number in the first place.

To learn more about how SK Global Software’s Credit Card Advantage can help reduce vulnerability in your payment system, contact us for a demo today.

 

Often, the banking and treasury functions configured in an enterprise resource planning (ERP) solution like Microsoft Dynamics 365 involve sophisticated and thorough approvals and other processes. However, without file storage available in the ERP solution itself, some businesses implement unsecured bank communication and file transfer strategies. The consequences for these businesses and their financial partners could be drastic, particularly in today’s environment. Additionally, these companies miss out on valuable opportunities to further automate their financial processes.

Online banking security risks: The importance of end-to-end protection

With billions of dollars at stake, it’s no surprise that banks and other financial institutions are prime targets for cybercrime. A 2019 article from Trend Micro identified that banking customers and infrastructure are prominent targets for cyberattacks. Customers face phishing attacks, browser injects and other threats.

The last link, the weakest link: Why secure communication matters

If you have a strong chain overall, but there’s one weak link, what do you have? A vulnerable gateway.

Today, that final link in the chain could be even more crucial than in the past. Previously, a centralized workforce that relied on a tightly controlled corporate network could at least offer greater security, even if the processes undertaken on that network could be improved.

Today, when remote work is the norm, distributed workforces rely on home networks that employ varying levels of protection.

In this environment, it’s even more crucial that financial processes employ strong security throughout the entire workflow.

Too often, the weakest link in the chain is at the point where files are transferred to and from the bank. Without secure file storage available within Dynamics 365, businesses may rely on individual workers to upload an editable file containing sensitive information from their desktop web browser to the bank’s interface. Receiving files from the bank is similarly risky. Conducting this kind of business from a home network multiplies the risk factor.

Additional considerations: Lost efficiency for manual banking processes

Using manual, unsecured communication channels with your bank also undercuts your ability to automate time-consuming, labor-intensive processes. This is especially true for receiving bank statements. When an individual is responsible for directly receiving and maintaining these records — then reconciling them as well — the process can take up an excessive time, distracting from the completion of other tasks and introducing the potential for human error.

Secure communication for online banking

The growing importance of secure communication has become clear in many circles, from messaging to videoconferencing. For online banking security, end-to-end protections must entail secure communication between the business customer and its financial institution. Specifically, the exchange of files between the company and the bank must be conducted through a secure channel.

How it works: The Bank Communications Hub

The Bank Communications Hub (BCH) serves as a secure channel through which businesses can communicate between the Dynamics 365 ERP and a bank. Without the need for additional on-premises infrastructure, the BCH can be implemented through a secure cloud configuration. This solution stores files for Dynamics 365 and communicates securely and directly with any bank or other legal entity of your choosing. For example, in Dynamics 365, business users can create, approve and submit vendor payments for execution, after which the BCH will carry out that workflow.

Importantly, the BCH allows businesses to remain bank independent. Because the configuration can be integrated with any bank worldwide, companies are not committed to remaining with one bank simply because of their secure communication software solutions.

Instead of forcing individual contributors to manually exchange files with their banks, the BCH provides a more secure communication channel, limiting the potential for bad actors to intercept and exfiltrate sensitive data. This process also ensures that files are stored securely prior to their transfer and after they are received from the financial institution.

Better online banking security, plus enhanced automation

An additional feature of the BCH is the ability for businesses to further automate their financial processes, even when those workflows involve secure communication with outside financial institutions. For example, receiving and reconciling bank statements will require less manual processing and interaction when these processes are automated through the BCH. The hub can import statements according to the business’s desired cadence, not requiring an individual to download, manage or store the statements. From this secure storage point, automation can be used to create statements within the company’s ERP, setting the stage for an efficient reconciliation process that’s mapped to the company’s unique needs and capabilities. This automated solution provides greater security, less human input, improved accuracy and better efficiency overall.

The Bank Communications Hub is a unique solution from SK Global Software that helps facilitate many other value-adding processes and automation capabilities for accounting and finance departments. Learn more about our banking and treasury solutions. Get in touch with us today.

Security Briefing Download

 

Businesses of all types are looking to implement first-quarter strategies that will help them improve efficiency for 2021. Going live with a new banking or treasury solution is a top concern for many accounting and finance professionals as the year draws to a close.

What motivates these forward-thinking business leaders? According to a 2019 survey from Deloitte, the top driver for applying treasury technology was the desire to automate manual processes, with 72% of respondents saying that doing so was a critical or very important concern for them. At 68%, the second most important cause was risk mitigation, including a need for greater security and less human error.

Top 6 tips for going live with your treasury or banking solution

If you want to reap the benefits of a new treasury or banking solution, getting a head start with these six tips can help ensure that your implementation succeeds in achieving the business’s goals.

1. Solidify processes first

One possible issue for implementing a new banking solution is attempting to use the setup and integration timeline to also smooth out difficult processes that have previously been conducted in an ad hoc or nonstandard fashion. In reality, all business processes that interact with the new solution should be firmly established prior to the implementation. The technology is not meant to help organizations troubleshoot and re-engineer existing processes. It is intended to streamline and improve those operations. Think about it this way: If you can’t explain a particular process to your integration partner, then they certainly can’t explain that process to a computer program.

2. Avoid siloed decision-making

Banking and treasury solutions should be part of the conversation as soon as you begin to explore how your enterprise resource planning (ERP) software will handle finance functions. If you think you will need outside support for a banking or treasury solution, involve your potential partners early on, and allow them to inform your decision-making process for the overall ERP setup. For example, your bank may use one of several different platforms — like a host-to-host platform or a portal. If an ERP implementation proceeds without considering downstream effects like these, it could be difficult to readjust once you’re ready to focus on your treasury solution.

3. Bring in the bank — or the banks — early

Lead times for your bank could present a hurdle, too. Keep in mind that it could take between six and 12 weeks to set up a new service with these institutions, and testing will take time as well. Build that timeline into the scope of your larger ERP planning.

Multinational companies may have relationships with several different banks around the globe. If they’re looking to streamline and create efficiencies with their ERP implementation or a new banking solution, consolidating their efforts to work with just one key financial partner, or a few, may be part of the strategy. If this is where you think you might be headed, it’s important to make this decision in the initial stages of the project.

4. Complete robust testing with the bank

As we mentioned, testing the new treasury solution with your bank can take time, but this is a crucial step. Make sure to not skip past it. In fact, wherever possible, opt for robust, realistic testing scenarios instead of just accepting the minimum standards for executing the implementation. In particular, make sure that you test at a comparable payment volume to your normal delivery loads. Also, include testing for country destinations where you’ll be delivering payments in the future. If you regularly send out hundreds of payments to several different countries, you should verify that these parameters will work under your new solution. The same holds true for testing imports like bank reconciliation and settlements.

5. Manage your transition period thoughtfully

On the date that your new banking solution is scheduled to go live, you should be cautiously optimistic about the execution. However, this isn’t the time to test out mission-critical million-dollar international vendor payments. The transition period, known as a cutover, is a crucial time. Run key payments on the old system before cutover, and you’ll breathe easier.

6. Stick it out with your partner

Your treasury solution should add value for your organization. In order to make sure that you maximize the benefit you receive from implementation — including for reconciliation, cash application and vendor payments — keep your supporting partners on through the end of the month. They’ll help you tweak processes and operations for optimal efficiency going forward.

 

Integrating with your bank to enable direct communications between your treasury platform and their internal infrastructure comes with considerable benefits. Not only is your business able to save its accounting team significant time and manual work, but direct bank communications can also help bolster data security and your ability to further automate.

However, setting up integrated communications with your banking service providers takes some time, consideration and planning. It’s important to ensure that all the moving parts are in place and that configurations are completely accurate.

Why integrate with your bank?

Before we examine what businesses need to ask their banking partners, it’s important to understand the advantages of supporting direct communication of this nature.

In the past — and still today — many enterprises used manual processes to transfer data to and from their bank. This includes manual uploads and downloads of critical files containing sensitive data, being passed back and forth between the company and the bank. And while this strategy may have sufficed in the past, it can open enterprises up to considerable security risks.  What’s more, the internal finance and accounting teams engaging in these manual processes waste significant time on these tasks which could be better spent on more valuable and strategic accounting work.

The solution here is to leverage technology like SK Global’s Bank Communications Hub, which supports the kind of robust, uninterrupted integration between enterprise Dynamics ERP solutions and the bank. Additionally, this type of advanced technology can also support time and money-saving automation, including for the reconciliation process, transaction matching, mapping capabilities and more.

What do I need to ask my bank?

First and foremost, it’s important that accounting and finance stakeholders spearheading the integration process understand how to guide the initiative and collaborate with their banking partners. To that end, there are some key questions to ask to help ensure a successful integration:

Who at the bank should we speak with?

In order to start the project off on the right foot, enterprise stakeholders should first connect with an account manager at their bank. This account manager can discuss the types of services the business will need in place with the bank in order to support direct communications. These might include bank services like eSettlement, direct debit capabilities or other functions.

Businesses will then connect with an onboarding or integration specialist at the bank, as well as a technology officer to help further their progress. These individuals can help the business work through the necessary technical and functional aspects required to support direct communications. And, once the integration is configured, the technical officer or onboarding specialist can help with testing to ensure that files are sent and received correctly.

What file formats will be required?

To make sure that files are transmitted correctly, it’s key that the business uses the right file formats to support different payment or transaction types. This might include specific formats for:

  • Bank reconciliation: Many banks use a similar file format for reconciliation, but these might change according to where the bank is based. Domestic American banks often use the common BAI2 file format, but international banks will typically require a different format (eg ISO20022 or MT940).
  • Outbound vendor payments: Configuring direct bank communication to support outbound vendor payments is typically the most complex part of the banking integration process. It’s common for businesses and banks to use the U.S. ACH file format for these outbound vendor payments, but if these are wire transactions, they will require a different format. Again, the format will also depend on the destination country where the payment is being sent.  Especially in the EU, ISO20022 formats continue to become the new standard.
  • Inbound files: It’s also key to leverage the correct format for files coming from the bank to the businesses Dynamics platform. Many of these will require the ISO PSR file type.

A partner like SK Global can support any file format required to enable direct bank communications. In addition to the more than 500 banking formats accessible through the SK Global Treasury Suite library, our developers can also build any new format, if needed.

What is the timing for communications?

It’s also critical to ask banking partners about the type of timing the business can expect when it comes to integrated, direct communications. Timing of files — particularly inbound files — can have considerable impacts on the business’s internal banking processes, especially when posting transactions to the company’s payment journals. So it’s key that stakeholders have an understanding of just how long it will take the bank to respond.

Partnering with an expert

Overall, the process to support direct communication with the bank can be complex. To reap the benefits that integration with the bank can provide, it’s imperative that communications and the supporting technology are configured directly.

A partner like SK Global can help guide this process and speak to your banking partners to ensure a smooth integration. SK Global has the expertise and experience to ask the right questions and to streamline the process to ensure success.

To find out more, check out some details of our Bank Communications Hub, and reach out to us to discuss or schedule a demo today.

 

When it comes to choosing a banking and treasury solution, many stakeholders devote significant time, planning and consideration to the process. Not only must decision-makers select the right tool, but they also need to ensure that it will support the necessary integration between internal accounting and treasury infrastructure and the bank.

Once this tool is chosen, however, the process isn’t complete just yet. Next comes the actual deployment, which includes its own set of considerations and challenges.

Thankfully, with a banking and treasury solution partner like SK Global Software by your side, your deployment becomes quick, simple and streamlined. Here’s how we do it:

Purpose-built tools

There’s a number of good reasons why you should consider SK Global for your technology solutions, including the fact that our software provides all the most-needed functions for banking and treasury processes today.

Our Treasury Automation Suite, for instance, enables your business to automate critical functions like cash management, vendor and customer payments, as well as risk management. And our Banking Automation Suite improves internal workloads for automated banking statements, statement reconciliation and processing vendor payments.

Overall, these solutions support a full suite of capabilities, and offer your internal accounting and treasury department all the features they need in a single platform that directly integrates with your existing Microsoft Dynamics deployment.

But we’ve also taken things a step further with our Bank Communications Hub, which not only streamlines the deployment of banking and treasury automation for key accounting processes, but supports the necessary direct and secure communication between your infrastructure and the bank. In this way, we not only offer all the features and capabilities your team needs, but the integration ability as well.

Supporting bank service partnerships

Speaking of banking integration, this is a part of the process that can become a bit tricky, if you don’t know which questions to ask and how to navigate successful integration. Thankfully, this is something that our SK Global experts are well-versed in, and we understand how to help you speak to your banking partners in a way that supports and expedites the process.

The power of Dynamics

In addition to providing all the features your internal accountants need and supporting your integration with the bank, our software also helps you make the most of your existing Microsoft Dynamics platform.

Our Banking and Treasury Automation solutions directly integrate with Dynamics AX and SL deployments, currently used by more than 30,000 businesses. This also means your internal users can reduce their learning curve and work in more familiar platforms, all the while taking advantage of expanded features and capabilities from SK Global.

A library of available file formats

In addition to fostering conversations with your banking service provider and supporting that integration, SK Global also has a pre-built library of nearly every existing file format within our Treasury Library. This means that we can enable the critical functionality between your Banking and Treasury Automation Suite and your bank from the very beginning, including activity like:

  • Bank reconciliation
  • Outbound vendor payments
  • Inbound files
  • And much more.

Our Treasury Library includes more than 500 banking file formats – from domestic standards like the U.S. ACH to international file formats for global banking.

And, if we don’t have just the right file format already built, we’ll work with your bank to get the necessary specifications and create one from scratch.

Years of experience

Besides the advantages provided by our software solutions, Treasury Library and other resources, your business also benefits from SK Global’s years of experience and deep expertise in the banking, treasury and technology industries. We’ve distilled this knowledge into a prescriptive methodology alongside empowering user training, where the result is a streamlined and successful deployment that enhances your banking and treasury processes.

Thanks to our experience, we understand the challenges that can arise during deployment, and we ensure that you’re able to sidestep and avoid any missteps.

“We want to make sure that things are right as early as possible in every project,” our Senior Solution Architect Chuck Schroeder pointed out on our recent webinar, Inside the SK Global Bank Consult.

If you’re ready to learn more about all the advantages we bring to the deployment process, get in touch with us today to ask questions of our experts, and get the ball rolling with your integration.

 

There are a number of key benefits to bringing automation into your accounting and finance team’s payment processes. Besides eliminating unnecessary human intervention and saving considerable time and effort for your accountants, automation can also help reduce data entry errors and support fraud prevention.

And this is just beginning — automating your payments can also boost internal visibility over the company’s capital and financial activity, while improving relationships with partners and potentially earning the business discounts for on-time payments.

However, there are a few different areas in which payment automation can be integrated, and it’s key that decision-makers and accounting leaders understand the differences, as well as the advantages they can achieve.

Today, we’re taking a closer look at customer and vendor payments, and how automation can impact these processes.

Customer payments: Accounts receivable automation

“Accounting staff no longer need to  match payments manually.”

Payments that come into the business as a result of the sale of the company’s goods or services are accounts receivable (AR) transactions. Typically, when these AR payments arrive, they must be double-checked and matched up with the business’s internal records, ensuring that everything from the date, to the amount, payment reference and check number all align. Traditionally, this is a task that’s been handled by internal company accountants, but this is now a key process to consider for automation.

Here’s how that works: As opposed to a customer payment being received and hand-checked by staff members, a solution like SK Global’s Accounts Receivable Customer Payment Automation software takes over. This payment matching program is a highly customizable solution that enables users to establish their own matching rules and degrees of confidence, ensuring that each customer payment is matched according to the business’s AR procedures.

In this way, accounting staff no longer need to match payments manually, but can instead allow the AR automation software to run in the background and match all customer payments to the business’s records within Microsoft Dynamics. Thanks to features like adjustable levels of confidence, the software can send out a notification and elevate any customer payment issues when necessary, ensuring that nothing falls through the cracks.

For accounting administrators and controllers, this means they’re able to set up direct debit transactions with customers, speeding up and streamlining transactions while reducing the amount of required manual work for accounting staff. Automating customer payments also results in a smoother experience for the company’s clients, giving them peace of mind that all payments will be matched according to the business’s own AR procedures.

Vendor payments: Accounts payable automation

In addition to automating inbound payments that the business receives from its customers, companies can also consider implementing automation for their outbound vendor payments. Usually, the task of sending payments to the organization’s vendor partners is handled by the accounts payable (AP) department, where accounting staff communicate with the bank to ensure that all current debts are paid.

More Vendor Payment Automation Resources

With automation in place through technology like SK Global’s Vendor Payment Automation software, however, these vendor payments can be processed while supporting direct and secure communication with the company’s bank.

Young women in professional dress at an office. Reduce the amount of human intervention required by automating vendor and customer payments.

This type of software automates the vendor payment process, and can support global payment standards including ACH in the U.S., as well as SEPA, BACS, IAT and others used abroad. In this way, even international vendor payments can be fully automated, with completely unattended file transmissions to the bank to safeguard paper checks and prevent fraud.

Additionally, with a solution like SK Global’s Vendor Payment Automation, vendors can receive a simple or customized email notification for all electronic, automated transactions coming from the business. This ensures that all parties are on the same page as far as payments, and record journals can be updated accordingly.

Similar to automation for customer payments, AP automation to support vendor payments reduces the amount of human intervention required on the part of internal accountants. This helps eliminate any chances for human error and saves considerable time for staff members, which can be reallocated toward more important, strategic work.

Finding the right solutions for AR and AP automation

Automating customer and vendor payments can be a lifesaver for internal accounting and finance staff members, effectively restructuring manual payment processing procedures for the better.

However, in order to achieve these results, businesses need solutions that can integrate directly with their current finance infrastructure, as well as software capable of supporting direct and secure communication with the bank.

SK Global’s Treasury Automation Suite can provide all these features, and more, enabling enterprises to bring much needed automation to their internal accounting procedures.

To find out more, check out our website and connect with us to schedule a demo today.