Virtual Accounts Payable Solutions for Nonprofits

There are many options for paying your organization’s bills without hand-signing checks.

Things you’ll want to consider when choosing solutions for your organization include: cost, internal controls, integration with your bookkeeping program, security, approval processes, and fraud risk.

Accounts Payable

Deluxe Payment Exchange (eChecks)

Deluxe Payment Exchange are electronic checks that are delivered and retrieved by the recipient via email rather than in a printed form through the mail.
No additional software is required to retrieve and print the Deluxe eCheck, and it can be deposited remotely or at the bank just like a normal paper check.
Prices range depending on the number of checks needed; see here for information on pricing. There is no monthly subscription.
For QuickBooks users (both Online and Desktop), Deluxe eChecks have a free add-on that allows your bookkeeper to continue their normal processing of accounts payable in QuickBooks. For more information on the add-on, please go to the Deluxe eChecks website here.
More questions? See the list of FAQs on the Deluxe website: https://www.deluxe.com/Deluxe eChecks/faq

Credit Cards

Credit cards are an option for organizations, especially for routine or automated bills. In comparison to debit cards, where funds come directly from a checking account, credit cards allow for more time to review and dispute transactions.
For most credit cards, organizations can have a master account, with additional cards assigned to individual employees as needed.
For all cards, limits can be set to minimize the potential for fraudulent spending.
Often banks offer credit card services and the accounts can be linked making for easier payments.
Check with your bank for options.

Direct Deposit Vendor Payments through QuickBooks

For clients that already have a payroll subscription, 1099 vendors can be paid by direct deposit in both QuickBooks Desktop and Online; contact Intuit for fees as costs vary with payroll subscription level.
For more information on the process of setting up vendors for direct deposit payments, see this article from QuickBooks Help.

ACH (Automatic Clearing House)

ACH is a network that coordinates automatic payments without using paper checks, wire transfers, credit cards or cash.
ACH can be set up for receiving and sending payments.
Organizations can set access and permission levels for employees, which allows for checks and balances.
This article from the Balance explains this electronic payment and money transfer system.
Check with your bank about setting up ACH transactions.

Bill.com

Bill.com is a virtual accounts payable process, which allows organizations to pay vendors electronically with ACH payments, and via paper checks printed and mailed by Bill.com.
Bill.com integrates with both QuickBooks Online and Desktop.
This is a subscription service; aside from the “Essentials” level, the other levels integrate with most accounting software.
For more information on Bill.com go to their website here.

Online Bill Pay

Most banks allow organizations to pay their bills via online bill pay, a similar process for small businesses as for individuals.
These systems typically do not allow for segregation of duties; the same person sets up and approves the payment.
Check with your bank to see if the bank has additional levels of access to set permissions for different users.