How to Setup or Cancel Scheduled Payments

For accounts payable teams, managing payments can quickly become a hassle. Keeping track of due dates, making sure bills are paid on time, and dealing with late fees can take up valuable time and energy. These issues not only cause stress, but they can also mess with your cash flow and throw off your financial plans.

That is where scheduled payments come in. They automate vendor payouts, so you do not have to worry about missing a due date or manually processing each payment. This means reduced late fees, better control over cash flow, and more time for your team to focus on other important tasks.

In this guide, we will show you how to set up and cancel scheduled payments, share tips to avoid mistakes, and explain why they are such a game-changer for accounts payable teams. 

What Are Scheduled Payments?

Scheduled payments are simply automatic payments that happen on a set schedule without you needing to process them manually each time. Once you set up the details—like the amount, receiver’s bank details, and date—it is all taken care of for you. This makes handling regular expenses a lot easier.

There are a few different types of scheduled payments that businesses use:

• Recurring Bills: These are payments for things like utilities, internet, or insurance that come up regularly—often monthly. You set them once, and they are paid automatically.
• Subscription Services: Think software licenses, media subscriptions, or memberships that charge on a monthly or yearly basis. With scheduled payments, you do not have to remember to make each payment.
• Employee Salaries: Payroll can also be set up as a scheduled payment. That means employees get paid on time, every time, without you needing to process each paycheck manually.
• Vendor Payments: Scheduled payments ensure that payments are always made on time for regular purchases or services from vendors.

Let us simplify the concept with an example. 

Suppose a company, Tech Solutions Inc., has a monthly subscription to a software platform that costs $500. Each month, the AP team manually processes this payment, but they sometimes forget, leading to late fees. To avoid this, they decide to set up a scheduled payment through their business bank account.

Once set, the $500 payment will automatically be processed on the first of every month. The AP team no longer needs to remember the due date, and the software provider is paid on time, every time. This ensures no late fees, saves the team valuable time, and streamlines the payment process.

The Benefits of Using Scheduled Payments for Accounts Payable Teams

Scheduled payments offer several important benefits for accounts payable teams:

• Efficiency: Automating payments saves time and costs. Your team no longer has to handle each payment manually. This gives them more time to focus on important tasks that add more value to the business.
• Cash Flow Management: With scheduled payments, you know exactly when money will leave your account. This helps you plan better and ensure you always have enough funds to cover regular expenses.
• Reducing Repetitive Work: Regular payments can be set up once and left to run automatically. This reduces the number of small tasks your team has to do, reduces mistakes, and helps them make better financial decisions.

How to Set Up Scheduled Payments?

Setting up scheduled payments is easy, and there are a few ways to go about it. Just remember, this is a general guide, so the steps might look a little different depending on your situation.

Bank Accounts (Online Banking Platforms & Mobile Apps):

1. Log into Your Bank Account: Access your bank’s online portal or mobile app.
2. Go to Bill Pay or Payments: Find the bill pay section or payments tab.
3. Enter the Payment Details: Fill in the recipient’s information, the amount to be paid, and the frequency (weekly, monthly, etc.).
4. Confirm and Set the Date: Choose the date the payment should be made and confirm.
5. Review: Double-check the details to ensure everything is correct.

Using your bank’s platform is one of the most common ways to manage scheduled payments.

Accounting or Finance Software:

1. Access Your Software: Log into your accounting software.
2. Select Recurring Payment Options: Most accounting software has a recurring payment or scheduled payments feature.
3. Enter Payment Information: Set the frequency, recipient details, and payment amount.
4. Save the Schedule: Confirm and save the payment schedule.
5. Monitor and Adjust: Keep track of payments and update details as needed.

Bill Payment Services:

1. Log in: Log into your integrated platform.
2. Go to Recurring Payments: In the payment settings, look for the option to set up recurring payments.
3. Input the Details: Add the recipient, payment amount, and frequency.
4. Confirm: Double-check and confirm the payment schedule.

Bill payment services offer an additional layer of convenience and security, especially for global multi-currency payments.

Tips for Success:

• Set Reminders: Always set reminders to review scheduled payments regularly.
• Double-check Payment Amounts and Due Dates: Avoid errors by double-checking the payment details before confirming the setup.
• Use Bank-Linked Software: Many accounting platforms can sync directly with your bank, saving you time and reducing errors.

How to Cancel Scheduled Payments?

Sometimes, canceling a scheduled payment is necessary. You may need to cancel scheduled payments for various reasons:

• Service Termination: If a subscription or contract ends, cancel the payment to avoid further charges.
• Changes in Contract Terms: If there are adjustments to terms (e.g., payment amount or schedule), you should cancel the old arrangement.
• Budget Cuts: In cases of financial strain, cancel non-essential payments to adjust cash flow.

Here is how you can do it:

Bank Accounts:

1. Log into Your Account: Go to your bank’s online platform or app.
2. Find the Scheduled Payment Section: This is usually found under the “Bill Pay” or “Payments” tab.
3. Select the Payment to Cancel: Identify the payment you want to cancel.
4. Choose the Cancel Option: Follow the prompts to cancel the scheduled payment.

Finance or Accounting Software:

1. Log into Your Accounting Software: Access your finance software.
2. Find Recurring Payments: Look for the recurring or scheduled payments section.
3. Select the Payment to Cancel: Click on the payment you wish to cancel.
4. Cancel the Payment: Follow the cancellation process and confirm.

Bill Payment Services:

1. Login to Your Service Account: Go to your integrated payment platform.
2. Go to Recurring Payments: Find the recurring payments section.
3. Select the Payment to Cancel: Choose the scheduled payment to stop.
4. Cancel and Confirm: Confirm cancellation.

Common Mistakes to Avoid When Setting Up or Canceling Scheduled Payments

While setting up and canceling scheduled payments is straightforward, common mistakes can cause unnecessary complications. Here is what to avoid:

• Not Double-Checking Payment Dates or Amounts: Always double-check the payment details—such as amounts and due dates—before confirming any payment setup.
• Forgetting to Update Payment Methods: If your credit card or bank details change, make sure to update them in your payment settings. This prevents payments from failing due to outdated information.
• Overlooking Cancellation Terms or Deadlines: Some services require advanced notice to cancel payments. Always review the terms and ensure you cancel within the specified time frame to avoid additional charges.
• Not Using Payment Automation: Relying on manual payments or forgetting to set up automation for regular bills and expenses can lead to missed payments and late fees. Automating payments helps ensure consistency and removes the risk of human error.

Payment Automation with Peakflo: Scheduling and Canceling Payments Made Easy

Peakflo is an all-in-one finance management platform where your AP team can easily automate and manage scheduled payments. This makes it simpler to handle tasks like paying vendors, tracking bills, and ensuring everything is on time. Here is how Peakflo helps with scheduling and canceling payments:

Smart Payment Scheduling

Peakflo makes scheduling payments simple. Here is how it works:

• Automated Payments: You can set up payments to happen automatically based on the rules you choose. For example, if you need to pay a vendor every month, you can set it up once, and Peakflo will handle the rest.
• Recurring Payments: For regular payments, like monthly subscriptions, you can set them to repeat automatically. You do not need to set them up every time manually.
• Custom Workflows: Every company has different needs. Peakflo lets you create approval workflows that match your company’s process. This way, you can ensure payments get approved by the right people every time.
• Approve Payments Anywhere: Peakflo’s mobile feature lets you approve payments from your phone. Whether you are at the office or on the go, you can make sure payments are approved quickly.

Simple Payment Management

Managing your payments is easy with Peakflo:

• Centralized Dashboard: Peakflo has a dashboard where you can see all your upcoming payments. This makes it easy to keep track of everything in one place.
• Modify or Cancel Payments: Sometimes, you might need to change or cancel a payment. Peakflo makes this simple. You can quickly modify or cancel payments with just a few clicks.
• Real-Time Payment Updates: You will get live updates on the status of your payments. You will always know when payments are made and when they’re scheduled.
• Reminders for Low Balances: If your wallet balance is running low, Peakflo will remind you. This helps ensure you always have enough funds for your upcoming payments.

Managing Payments in Multiple Currencies

For businesses that deal with vendors in different countries, Peakflo handles payments in multiple currencies:

• Support for Different Currencies: Peakflo lets you make payments in several currencies. This is helpful if your business works globally.
• Automatic Conversion: The platform automatically converts currencies and tracks exchange rates. You do not need to worry about manually converting funds.
• Multi-Currency Wallet: Easily top up your multi-currency payables wallet and allow Peakflo to streamline your payments. Peakflo helps you keep everything organized by allowing you to manage all your currencies in one place.

AI-Powered Invoice Processing with PO Matching

Peakflo uses 3-way matching to improve payment automation. Here is how it helps:

• Automatic Invoice Capture: Peakflo automatically captures the details when you receive invoices. This helps ensure all payments are accurate.
• Smart Insights for PO matching: Helps your team match purchase orders to invoices with accuracy. It scans bills for PO numbers and links them to the right orders. Even if a PO number is missing, the AI finds the match based on other details. It flags any issues like mismatched items, prices, or currencies so you can fix them quickly.
• Fraud Prevention: Steadily track errors or unusual activity in POs and bills. It flags problems like incorrect payment terms, wrong quantities, or mismatched currencies. These alerts help your team catch mistakes early and prevent fraud. 

Streamline Funds Flow

Setting up or canceling scheduled payments becomes effortless with Peakflo’s end-to-end payment automation.

• Set Up Payments Easily: 

Peakflo replaces the need for multiple systems to manage payments and payouts. Your team can schedule payments for daily collections and vendor disbursements in one place. Use simple tools to split transactions with vendors automatically. This saves time and ensures smooth payments without extra effort.

• Automate Daily Transfers:

• To Your Company Account: Schedule daily transfers of collected funds directly to your local bank account. Peakflo handles this automatically, so you do not have to.
• To Your Vendors: Set rules for vendor payouts, and Peakflo will handle them on schedule. No more manual work or delays. Your finance team can focus on other tasks while Peakflo ensures every payment is made on time.

Easy Integration with Your Systems

Peakflo easily connects with your existing systems:

• Syncs with ERP/ Accounting Software: Peakflo works with your current financial software. This means you do not have to enter data manually, reducing mistakes and saving time.
• Audit Trails and Compliance: Peakflo keeps a detailed record of all your payment actions. This helps you stay compliant with financial regulations and makes it easy to review your payment history.
• Faster Month-End Closing: Automating tasks like data collection and account reconciliation saves time and reduces errors. This helps make your month-end close simpler and faster.

Conclusion

Scheduled payments offer accounts payable teams a simple yet effective way to streamline operations, manage cash flow more efficiently, and save valuable time. By automating payments with Peakflo’s AI-powered solutions, businesses can minimize the risk of late fees and ensure that transactions are always timely and accurate. To fully reap the benefits, it is important to review and adjust your scheduled payments regularly.

If you have not explored it yet, now is the time to see how scheduled payments can simplify your financial processes with Peakflo. 

Peakflo is perfect for enterprise companies with complex financial operations. It works well for businesses managing many vendors and handling large payment volumes. Companies can use Peakflo to improve financial processes, reduce errors, and save time on repetitive tasks. It helps simplify workflows, making financial management easier and more efficient.
Feeling overwhelmed by a flood of invoices? Take a demo tour and start future-proofing your financial management today!