What is integrated payables? Here’s what businesses need to know

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  1. Introduction
  2. What is integrated payables?
  3. Why is integrated payables important for businesses?
    1. Time savings
    2. Predictable data
    3. Reduced risk of errors
    4. Stronger vendor relationships
    5. Ability to scale
  4. How does integrated payables work?
    1. Payee information
    2. Batched payments
    3. Automatic routing
    4. Approvals
    5. Transaction records
    6. Notifications and updates
  5. How can Stripe help with integrated payables?
    1. All-in-one platform
    2. Automation and APIs
    3. Easy reconciliation
    4. Strong security
    5. Global payment capabilities
    6. Support for different payment methods
  6. Which industries benefit most from integrated payables?
    1. Logistics and transportation
    2. Media and advertising agencies
    3. Education and nonprofits
    4. Construction and property management
    5. Healthcare and clinics
    6. Hospitality and event management
  7. What are common challenges with integrated payables?
    1. System compatibility
    2. Staff training
    3. Vendor onboarding
    4. Inaccurate data
    5. Up-front investment
    6. Data protection

Integrated payables is a service or technology that allows an organization to manage all outbound payments in one place. Instead of juggling checks, wire transfers, and Automated Clearing House (ACH) transactions across different portals or spreadsheets, you can use a single platform that handles each step.

Many midsize to large organizations have adopted integrated payables to simplify what can be a chaotic array of payment obligations. In 2024, 81% of small and medium-sized businesses were open to adopting an integrated payment solution.

Below, we’ll explain what businesses need to know about integrated payables, including how they work, which industries can benefit most from this service, and how Stripe can help.

What’s in this article?

  • What is integrated payables?
  • Why is integrated payables important for businesses?
  • How does integrated payables work?
  • How can Stripe help with integrated payables?
  • Which industries benefit most from integrated payables?
  • What are common challenges with integrated payables?

What is integrated payables?

Integrated payables gathers every outgoing payment within a single system. If you input a batch of payments for vendors, suppliers, and service providers, the system dispatches them in the correct format (e.g., an ACH transfer for one vendor, a virtual card for another). Instead of needing to handle each payment manually, finance teams use a single interface to process and log everything.

You can use integrated payables for vendor invoices, contractor payroll, membership or subscription fees, and reimbursements for business expenses. The technology also coordinates approvals and scheduling, and keeps financial records.

Why is integrated payables important for businesses?

A well-structured payables system can relieve stress, minimize errors, and improve overall financial practices. Here are some reasons businesses might want to implement integrated payables.

Time savings

Entering payment information manually is tedious, as is toggling between different payment portals for checks, ACH transfers, or virtual card payments. An integrated solution eliminates these extra steps. By entering a batch of payments and letting the platform decide how to dispatch them, finance staff can focus on more meaningful work.

Predictable data

When your payment logs exist across a variety of spreadsheets, emails, or multiple software platforms, it’s easy to lose track of data. A unified system aggregates each transaction as it happens, storing it in a single ledger or dashboard. That creates a consistent record of which vendors you’ve paid, how much you paid them, and when payments were sent for better forecasting and tracking.

Reduced risk of errors

Integrated payables can reduce the chance of mistakes and errors by implementing standardized processes and validation steps. With all your payables in one system, you’re less likely to retype an amount incorrectly or rely on outdated vendor details. Some solutions add approval tiers so sensitive payments can get more attention if necessary.

Stronger vendor relationships

Vendors expect prompt, accurate payments. Slow or incorrect transactions can affect the relationships you’ve built. By unifying your outgoing payments, it’s easier to pay accurately and on schedule, which can help you maintain strong ties with your partners.

Ability to scale

As a business expands, the number of invoices and payees can quickly increase. Integrated payables reduces the overhead associated with increased transaction volumes. Instead of hiring multiple people to handle separate processes, you can use a central payment hub that’s built to accommodate growth.

How does integrated payables work?

Integrated payables works by syncing multiple payment channels into one orchestrated flow. While the specifics can vary by provider, here’s a general look at how you work with an integrated payables system.

Payee information

A business has a roster of partners, vendors, and freelancers, all with their own payment preferences and banks. Integrated payables software stores all of this information in a single database so you don’t need to chase down details every time a new invoice arrives.

Batched payments

Instead of launching each payment individually, an administrator collects all relevant invoices or disbursements and schedules them for payment together. This might be done daily, weekly, or according to a specific timetable that suits the business. Some organizations choose to pay certain vendors at fixed intervals to stabilize their schedules of outgoing funds.

Automatic routing

The software decides which payment method to use for each transaction. This refines the outflow based on cost, speed, or vendor preference without adding to your workload.

Approvals

Many services include layers of approvals to prevent errors. Smaller transactions proceed automatically, but anything above a chosen threshold requires a finance manager’s sign-off. This helps the business monitor more substantial expenses more closely.

Transaction records

Each payment event is captured and stored. The data can be exported or synced with accounting software. The result is a consolidated ledger that tracks amounts paid, payee names, payment types, and confirmation details. Having those records in one place can make taxes—or external audits—much simpler.

Notifications and updates

Integrations also often offer real-time payment notifications. If a payment doesn’t go through (e.g., if the bank account was closed), the system alerts you. That way, neither payer nor payee has to wait days to learn that the payment never arrived.

How can Stripe help with integrated payables?

With Stripe, businesses can consolidate many of their financial tasks with a single platform to manage incoming and outgoing funds. Here’s how Stripe can help with integrated payables.

All-in-one platform

Stripe supports all types of payments, from subscription billing to one-off payments and invoice creation for B2B transactions. If your business needs to pay vendors or contractors, Stripe’s application programming interface (API) and Dashboard empower you to manage these transactions alongside your inbound revenue.

Automation and APIs

Stripe offers programmable features so engineering teams can design custom payables workflows. If you want your system to automatically schedule disbursements when an invoice is approved, Stripe’s API can help. Connecting Stripe with your existing accounting or finance software can also reduce your manual task workload.

Easy reconciliation

Stripe organizes every transaction with thorough metadata to label and track all incoming and outgoing payments. Because your transactions are in a single record, reconciling your statements on the back end is straightforward.

Strong security

Businesses that use Stripe benefit from its deep commitment to security and safe management of sensitive financial information. You aren’t required to store sensitive payment credentials on your servers, which can lower your risk.

Global payment capabilities

Stripe is a powerful solution for businesses that operate internationally, whether they’re paying suppliers in different countries or handling currency conversions.

Support for different payment methods

Stripe supports ACH transfers, wire transfers, and local bank transfer methods. That means your integrated payables setup can be used with whatever method best fits each vendor or partner.

Which industries benefit most from integrated payables?

Some industries are especially well suited to integrated payables because they handle complicated payments that demand speed, accuracy, and flexibility. Here’s how the system is used across industries.

Logistics and transportation

If you’re in logistics, payments can be a constant concern, whether they’re for fuel, tolls, maintenance, subcontracted drivers, or other expenses. Because invoices come from different vendors, every invoice might be slightly different.

An integrated payables system helps you track all these expenditures. You can batch payments, automate approvals, and use virtual cards to make on-time payments—important capabilities in an industry where timing is everything.

Media and advertising agencies

Advertising agencies need to manage numerous payment streams. You might need to cut a check to a production company, wire money to a media buying platform, or pay a freelancer who worked on campaign copy. Late payments can cause cascading delays and hurt a project’s timing.

These agencies use integrated payments to align payments with their schedules. Need to pay freelancers weekly and media platforms monthly? No problem. The system handles variations to keep your vendors happy and help you stick to your budget, and everything is logged neatly for easy reference later.

Education and nonprofits

Schools and nonprofits often have diverse payment needs, including grants, student stipends, and catering for community events. They also need to account for their finances in audits and donor reports.

Integrated payables centralizes payments and automatically categorizes them. For example, you can separate operational costs from program expenses to simplify reporting to donors or board members. This allows you to stay transparent while keeping the administrative workload manageable.

Construction and property management

Construction often involves a mix of payments, with subcontractors, suppliers, inspectors, and progress payments tied to project milestones. There are also retainage payments, which are withheld until the project is entirely completed. Delayed payments in any of these categories can slow down work or create tension.

An integrated system lets you batch supplier payments, schedule milestone-based payouts, and track lien waivers. Property managers can also use the system to manage payments to vendors for repairs or landscaping.

Healthcare and clinics

Between vendors that supply medical equipment and labs that process tests, not to mention reimbursements from insurance companies, the paperwork involved in healthcare payments can be overwhelming. Healthcare is also highly regulated so all transactions must be recorded and secure.

Clinics and hospitals use integrated payables to automate recurring payments, such as those for disposable medical supplies, while flagging big-ticket items—for example, a new MRI machine—for additional review. This combines the efficiency of automation with the oversight needed for high-value transactions, all while keeping records for audits or compliance checks.

Hospitality and event management

Hotels, caterers, and event planners work with rotating casts of vendors, from florists and musicians to cleaning crews and rental managers. When you add in seasonal swings and last-minute changes, it’s easy to lose payments.

Integrated payables makes it easier to stay organized no matter how busy you are. For example, you can schedule partial payments for a venue or DJ in line with their contract terms. Or during your busy season, you can batch and automate regular vendor payments to keep things running.

What are common challenges with integrated payables?

Although integrated payables can have a substantial impact, it’s not always simple to implement and use. Here are some of the potential issues you might encounter.

System compatibility

A business might already rely on a handful of finance tools. An integrated payables platform should be able to connect with these tools so data can flow between systems. If a company’s finance processes are outdated or highly customized, integrating the old and new tools might require extra development work.

Staff training

Shifting from manual procedures to an automated system can be disorienting for employees. People might prefer the old methods and resent the new system’s learning curve. Develop a thorough training plan so your staff can learn to use the new process with confidence.

Vendor onboarding

Vendors differ in their payment preferences, and bringing everyone together with a single platform can involve administrative work up front, such as collecting bank information or signing them up for new payment methods. This is only a one-time hurdle but it still requires managing expectations and providing assistance where necessary.

Inaccurate data

If you draw data from multiple sources, mistakes can happen. A single wrong field can lead to a failed or late payment. High-quality vendor data and a solid data-checking routine are important for avoiding these errors.

Up-front investment

While integrated payables often saves businesses money in the long term, these systems usually involve paying up front for setup, licensing, or training. While upgrading from your old systems is a major expense, especially for small businesses, it can have a big payoff later on. Plan carefully before rolling out a system like this.

Data protection

Any system that handles payments presents data protection challenges. An integrated solution should follow best practices regarding encryption, user access controls, and compliance. Some businesses need specialized compliance checks, which require a higher level of due diligence when selecting and configuring a payables provider.

The content in this article is for general information and education purposes only and should not be construed as legal or tax advice. Stripe does not warrant or guarantee the accurateness, completeness, adequacy, or currency of the information in the article. You should seek the advice of a competent attorney or accountant licensed to practice in your jurisdiction for advice on your particular situation.

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