Time Is Money: 6 Steps to Optimizing AP/AR Processes to Speed Payments
Speed, clarity and automation play a critical role in healthy cash flow. When payment processes are slow or unclear, delays can increase risk and tie up working capital. If time is money, do you have idle cash hidden in unnecessary cash flow transit?
By streamlining systems and automating how money moves, businesses can shorten cash-conversion cycles and operate with greater confidence. These six steps can help tighten timeframes, reduce redundancy and strengthen the bottom line.
1. Start With Deep Discovery
If time is money, information is currency.
Efficiency gains come from tailored solutions, not one-size-fits-all products. Understanding cash cycles – how money comes in, how it is processed and how it goes out – is key to building efficient and secure solutions.
A client-centered bank like Western Alliance begins with a deep dive into your business. What is the operational workflow? Are there any gaps? Where are the pain points? What are your goals? Bankers then work closely with you to design a treasury management program tailored to your needs.
2. Move Away From Manual, Fragmented Processes
A holistic view of receivables and payables makes it easier to identify where time and money are lost. Manual processes act as a hidden tax on both – and increase the risk of human error, which can lead to disputes, rework and delayed payments. Faster, more consistent invoicing and collection improve cash flow and reduce pressure on working capital.
Automation also removes friction points. By digitizing routine tasks, businesses can reduce processing time, limit errors and create a smoother flow of information between systems.
3. Use Technology to Accelerate AR and AP and improve your asset conversion cycle
Digital infrastructure platforms – such as electronic invoice presentment and payment (EIPP) or electronic bill presentment and payment (EBPP) portals – allow businesses to host invoices in secure, online self service environments. Offering your customers automated payment processes can shorten payment cycles while reducing accounts receivable costs. Through automated invoicing, it’s easier to send invoices as soon as goods are delivered or services are completed. This approach can reduce days sales outstanding (DSO), accelerate cash flow and make meaningful improvements to your bottom line without changing pricing or customer relationships.
If it’s been a while since you evaluated the efficiency of your accounting and invoicing systems, now is a good time to take a closer look. Take advantage of all the tools that can be available to you in a treasury management program designed with your specific needs in mind. Talk with your banker about the software you use, how it fits into your internal processes and your banking systems, and how the latest tools, including AI, can help.
4. Receive Funds Faster by Giving Customers What They Want
Your accounts receivable systems should be more of a help than a hindrance to profitability. Remove barriers to timely payments by providing one click payment functionality, with ACH, credit card and lockbox options that give customers the flexibility to pay according to their preferences and processes.
Modern lockbox systems accelerate check processing by feeding data directly into accounting systems, which speeds deposits, reduces internal handling and shortens the receivables cycle. While some institutions are preemptively reducing lockbox capabilities, Western Alliance Bank continues to invest in lockbox services in strategic locations across the United States, recognizing that many companies still receive check payments.
For businesses that receive checks, explore tools such as remote deposit capture (RDC) and mobile deposit. Clients can deposit checks quickly from an office or phone, making funds accessible within hours and helping small businesses improve liquidity and day-to-day cash availability.
5. Streamline Payables With Integrated Platforms
Integrated payables can be a powerful efficiency lever. Research from Ardent Partners shows that e-payables can cut invoice processing costs by 60%-80%, yet one-third of companies still use manual processes.
Western Alliance Bank’s tailored approach to accounts payable solutions includes the flexibility to integrate with a wide range of systems, from small businesses using QuickBooks or legacy software to the complex environments of a Fortune 500 company. We work with clients to integrate existing systems or explore alternatives that might be a better fit.
6. Build Efficiency and Protection Through Fraud Prevention
Optimizing AP/AR processes is not just about speed. It is also about safety.
At Western Alliance Bank, fraud prevention tools are built into integrated payables platforms. Companies can select from a menu of solutions to validate payment details before payment requests hit your account. We carefully review your processes to recommend the appropriate suite of solutions for your company’s needs. And in the event a fraud attempt impacts your organization, you will be able to reach a banking team member who knows your business and can swiftly take steps to mitigate the damage and block access to your resources so you can get back to business as soon as possible.
Why Choose Western Alliance Bank for Your Business Banking Needs?
Even with the right systems, relationships remain critical to cash flow stability. Relationship-driven banking helps businesses optimize returns, tailor credit solutions and navigate both growth and headwinds.
When you’re changing banks or consolidating your accounts, Western Alliance Bank’s white-glove approach makes it easier. You’ll experience customized solutions, frequent updates, and access to a dedicated team throughout onboarding and beyond.
Contact us to learn how our expert bankers can help you optimize cash flow today and as your business grows.
Frequently Asked Questions
Treasury management refers to the strategies and tools businesses use to manage their cash flow, banking relationships, payments and financial risk. A treasury management program helps companies optimize how money moves in and out of the business – improving liquidity, reducing costs and protecting against fraud. Treasury management may also be called cash management.
Accounts receivable (AR) refers to money owed to your business by customers for goods or services already delivered. Accounts payable (AP) refers to money your business owes to vendors or suppliers. Managing AP and AR efficiently is essential to maintaining healthy cash flow and avoiding unnecessary delays or costs on either side of the ledger.
ACH, or Automated Clearing House, is an electronic network that moves money between bank accounts. Commonly used for direct deposits, bill payments and business-to-business transactions, ACH is a reliable and cost-effective way to transfer funds without using paper checks or cards.
Remote deposit capture (RDC) technology allows businesses to scan and deposit checks electronically from an office or mobile device. RDC helps small businesses deposit checks more quickly, improving access to funds and day-to-day liquidity.
A lockbox is a bank provided service that helps businesses process customer payments more efficiently. Customers send payments to a secure address managed by the bank, which collects, processes and deposits funds on the business’s behalf. Lockbox services reduce mail and processing delays while improving access to cash. Western Alliance offers lockbox services in strategic locations across the United States.
Integrated payables is a payment solution that consolidates multiple payment methods, such as ACH, checks and virtual cards, into a single, automated platform. Rather than managing payments through separate systems, businesses can streamline the entire payables process, reducing manual work, cutting processing costs and improving visibility into how and when money leaves the business.
Electronic invoice presentment and payment (EIPP) and electronic bill presentment and payment (EBPP) portals are both digital platforms that allow businesses to deliver payment requests electronically and receive payments online. EIPP is typically used in business-to-business (B2B) contexts, while EBPP is more common in business-to-consumer (B2C) settings. Both allow customers to view invoices, make payments and manage billing questions in a secure, online self service environment, reducing manual work and speeding up the payment cycle.
The cash conversion cycle measures how long it takes a business to convert its investments in inventory, labor or services into cash collected from customers. A shorter cycle means money moves through the business more efficiently, reducing the need to borrow and strengthening day-to-day financial operations.
Days sales outstanding (DSO) is a measure of how long it takes a business to collect payment after a sale is made. A lower DSO means faster collections and healthier cash flow. Businesses can reduce DSO by automating invoicing, offering flexible payment options and making it easier for customers to pay quickly.
Western Alliance Bank
Western Alliance Bancorporation (NYSE:WAL) is one of the country’s top-performing banking companies. Its primary subsidiary, Western Alliance Bank, Member FDIC, is a leading national bank for business that puts customers first, delivering tailored business banking solutions and consumer products backed by outstanding, personalized service and specific expertise in more than 30 industries and sectors. With $90 billion in assets and offices nationwide, Western Alliance has ranked as a top U.S. bank by American Banker and Bank Director since 2016. In 2025, Western Alliance Bancorporation was #2 for Best CEO, Best CFO and Best Company Board of Directors on Extel’s All-America Executive Team Midcap Banks list.