In its continued effort to improve the experience of doing business in Montgomery County, the County government is now sending electronic remittance advices (RAs) or payment notifications to its vendors that have agreed to be paid electronically, usually via automated clearing house transactions (ACH).
Until recently, the County was only able to mail out the remittance advices that normally accompany supplier payments due to technology limitations. This process reduced the savings achieved by electronic payments; caused difficulties for vendors who had switched to electronic payment; and made other vendors hesitant to switch to this form of payment.
Now the County electronically sends RAs to vendors to accompany their ACH payments. Vendors are able to quickly determine the nature of the payment received from the County.
“We are striving to make life a lot easier for the County’s vendors while at the same time increasing the efficiency of County government,” said Montgomery County’s Director of Finance Alexandre Espinosa. “This is the result of the County’s departments of Finance and Technology Services working together to make the County more business-friendly.”
As part of a cost-saving initiative, the County has been pushing for vendors to switch from receiving payments by check to receiving electronic payments, which are more cost-effective than paper checks and easier to administer.
Within minutes after the County first issued electronic RAs on December 1, several vendors called to discuss payments, demonstrating the enhanced efficiency of the new process.