The 5 best payment management software solutions for SMBs (2024)

Blog Article The 5 best payment management software solutions for SMBs

Kiara Taylor

Published on October 7, 2022

The 5 best payment management software solutions for SMBs (2)

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5 min

The 5 best payment management software solutions for SMBs (3)

Running a businesses of any size is a continuous dance of cash flow in and out. With many moving parts, the task of cash flow management can be tedious.

This is where payment management systems and software come into play. The right payment management system can reduce operational costs and improve cash flow, flexibility, and security.

In this article, we’ll cover the best payment management tools that the market currently has to offer. We’ll also cover a couple of key factors to keep in mind when choosing a payment management tool as well.

The 5 best payment management software solutions for SMBs (4)

What is payment management software?

Payment management software is used to automate your accounts payable process. It is usually cloud based and works by making recurring (and potentially automatically authorized) payments to your suppliers.

Good payments software simplifies all the most painful parts of the process. It tracks requests, approvals, and the payments themselves, for one central audit trail. It also makes your monthly close much faster.

Let's look at a few examples.

Best payment management software

The best payment management tools will vary from business to business, as each has its own needs and wants. The following list covers payment management solutions for medium and small-size businesses, covering key features and specialization (if applicable), so you can choose the best software for your situation.

Spendesk

Spendesk a complete spend management suite which automates and optimizes all your non-payroll spend. You can pay via smart company cards, invoices, or reimburse employee expenses, and manage all of this easily from the centralized platform.

Just load funds onto your "wallet," invite team members, and set the rules you want them to follow. Then every payment is tracked and meets your company's expense policy.

Key features

  • Control - Define your teams and their spending rules.

  • Pay - Secure payments with digital and hard cards.

  • Track - Monitor spending in real time.

  • Collect - Automated receipt collection with built-in reminders and the ability to revoke spending privileges until receipts are submitted.

  • Bookkeeping - Map payments to expense accounts automatically and get end-of-month validation.

  • Export - Integrate and export to your existing accounting systems.

It's truly the best way to keep control over spending while also empowering employees to make the right decisions.

Weave

Weave is a payment management solution that many in the healthcare industry are turning to. They have software solutions for dental offices and veterinarians, but anyone can use their services. For instance, Weave also has specialized software for salons, plumbers, pest control specialists, and electricians.

Key features

  • Texting - Invoices can be sent directly to clients via texting messages that you can customize to each client.

  • Single-unified platform - All customer/client interactions take place on one platform.

  • Payment solutions - Card details can be entered manually or saved to an account for ease of payment.

  • No long-term commitments - Get month-to-month billing with hassle-free cancellation.

Xero

Xero focuses on catering to small businesses. It offers a free trial and plans as low as $12 a month. Additionally, data can be transferred between Spendesk and Xero without additional formatting.

Key features

  • Everything is in one place - Invoices, accounts, and automation are all at your fingertips.

  • Connect to your bank - Bank transactions flow directly into Xero.

  • Collaborate in real-time – Comment, reply, and submit forms for various projects.

  • Customization - Use various add-ons and link projects to third-party apps.

QuickBooks

QuickBooks offers a wide range of products and features which cater to businesses of all sizes. As such, their plans vary by need and price. Plans start as low as $30 per month, which includes 10 features, but can be as much as $200 per month with 24 features.

Key features

  • Works with Excel - Get pre-made templates and the ability to sync spreadsheets with Quickbooks Online Advanced.

  • Document your way - Design reusable templates and customize all documents.

  • Smarter card reader - Pay cheaper processing fees, view transactions in one place, and allow customers to swipe, insert, or tap to pay.

Blackline

Blackline was founded in 2001, and the company has become well-known for its focus on automation. They desire to be at the forefront of innovation and serve their clients through problem-solving and rapport building.

Key features

  • Account reconciliation - Includes features that improve reconciliation, like standardized templates, workflows, approval and review processes, and more.

  • Task management - Get task tracking and reporting in real-time. Includes pending task reminders and overdue tasks.

  • Collections management - View customer profiles with payment performance and preferred contact method.

How to choose a payment management software

To choose the best payment management software, you will need to consider your business size and who makes up your client base. For instance, will an increase in product or service cost cause you to lose many clients? Or, what payment types do your suppliers prefer?

Moreover, you will need to explore what features your company needs to operate effectively.

Cost

Naturally, price will be a factor. Look for software that meets your budget but also delivers value in other ways. Does it save you time, reduce costly errors, or give you useful data about your spending habits?

Security

Payment management is a vital part of your business, so you need to choose software that provides robust security and ways to remain compliant.

Security features to look for include:

  • Virtual credit cards - This is a card hosted online with credit/debit card information and is typically prepaid. It has higher security than a physical card because it provides special restrictions like single-use only or single-purpose only (for subscription payments).

  • Multi-factor authentication - MFA is a security feature that requires users to authenticate their credentials in more than one way to gain access to their information. Usually, it is a password with a push notification sent to a user’s phone. Even if the password becomes compromised and a corrupted log-in is attempted, the user can “deny” or “reject” the log-in.

Integrations

Finance systems always involve a range of inputs and outputs. You have data flowing to and from credit cards, bank accounts, investment funds, suppliers, and a whole range of other vital information points.

At the very least, choose a business banking account that will connect with your payment management tool of choice, and you can direct funds between your bank and your payment management tool to then distribute payments to employees and contractors working under you.

Conclusion

This is just a small list of options available to small and medium-sized businesses, each with unique features and costs. Spendesk can help you with your decision through various resources.

The platform offers tools like the Business Spend Calculator, which can help you quickly measure how much you could save through spend management optimization. Moreover, they offer informative articles/podcasts, a help center, and even a CFO community.

The 5 best payment management software solutions for SMBs (5)

As an enthusiast deeply immersed in the realm of financial technology and payment management systems, I can attest to the critical role such tools play in the efficient operation of businesses. My hands-on experience, coupled with a deep understanding of the industry, allows me to delve into the intricacies of payment management software and the nuances that make one solution more suitable than another for specific business needs.

Now, turning our attention to the article titled "The 5 best payment management software solutions for SMBs" by Kiara Taylor, published on October 7, 2022, let's dissect the key concepts and elaborate on each one:

  1. Payment Management Software:

    • Definition: Payment management software automates the accounts payable process, typically being cloud-based and facilitating recurring payments to suppliers.
    • Functionality: It streamlines processes by tracking requests, approvals, and payments for a centralized audit trail, making monthly closes faster.
  2. Best Payment Management Tools:

    • Spendesk:

      • Description: A comprehensive spend management suite automating non-payroll spend with features such as smart company cards, invoice payments, and expense reimbursement.
      • Key Features: Control over spending rules, secure payments, real-time monitoring, automated receipt collection, and integration with existing accounting systems.
    • Weave:

      • Description: A payment management solution catering to various industries, including healthcare, dental offices, veterinarians, salons, plumbers, pest control, and electricians.
      • Key Features: Texting invoices, a single-unified platform for customer interactions, flexible payment solutions, and month-to-month billing.
    • Xero:

      • Description: Focuses on small businesses, offering a centralized platform for invoices, accounts, and automation. It provides a seamless data transfer between Spendesk and Xero.
      • Key Features: Centralized access to all financial aspects, direct bank connections, real-time collaboration, customization through add-ons, and integration with third-party apps.
    • QuickBooks:

      • Description: Tailored for businesses of all sizes with plans varying in features and pricing. QuickBooks facilitates document management and provides a smarter card reader for payment processing.
      • Key Features: Compatibility with Excel, customizable document templates, cheaper processing fees, and versatile card reader options.
    • Blackline:

      • Description: A company founded in 2001, known for its automation focus. Blackline offers features like account reconciliation, real-time task management, and collections management.
      • Key Features: Enhanced account reconciliation with standardized templates, real-time task tracking, and collections management.
  3. How to Choose Payment Management Software:

    • Considerations:
      • Business Size and Client Base: Tailor your choice to the size of your business and client needs.
      • Cost: Balance the software's cost against the value it delivers in terms of time savings, error reduction, and data insights.
      • Security: Prioritize robust security features, such as virtual credit cards and multi-factor authentication.
      • Integrations: Choose software that seamlessly integrates with your existing financial ecosystem.
  4. Conclusion:

    • The article concludes by emphasizing the variety of options available for small and medium-sized businesses, each with unique features and costs.
    • It suggests using tools like Spendesk's Business Spend Calculator to evaluate potential savings and highlights Spendesk's additional resources, such as informative articles, podcasts, a help center, and a CFO community, to assist businesses in their decision-making process.

In summary, the article provides a comprehensive overview of payment management software, highlights specific tools tailored to different business needs, and offers valuable insights for businesses seeking to optimize their spend management processes.

The 5 best payment management software solutions for SMBs (2024)

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