Payment Run
The process of grouping multiple approved supplier invoices into a single batch for payment rather than processing each one individually. Most businesses run payments weekly or bi-weekly to manage cash flow and reduce processing time.
A payment run is a structured accounts payable process in which a business gathers all approved supplier invoices due for payment, groups them into a single batch, and executes the payments together. Rather than logging into a bank and processing each invoice separately, the finance team reviews the full batch at once, applies a single approval, and sends all payments in one go. For businesses handling 20 or more supplier invoices per month, this approach reduces both processing time and the risk of duplicate or missed payments.
How a Payment Run Works
The typical payment run follows a consistent sequence. First, the finance team reviews all invoices that have been approved and are due within the payment window. They check supplier bank details, confirm amounts against purchase orders, and flag any discrepancies. Once the batch passes review, it goes through an approval stage - usually a director or finance manager - before payments are released. After execution, the finance system is updated and bank transactions are reconciled against the batch.
The interval between runs varies by business. Weekly runs suit companies with high invoice volumes and suppliers on short payment terms. Bi-weekly or monthly runs work for lower-volume operations. Most businesses also keep an ad-hoc process for urgent payments that fall outside the regular schedule.
Plan around due dates
Schedule your payment run to fall one to two days before invoices are due rather than on the due date. This provides a buffer if an internal approval or banking system delay holds up the batch.
Why Payment Runs Matter for Cash Flow Control
A structured payment run gives a business clear visibility over outgoing cash. By batching payments on a defined schedule, the finance team can forecast the impact on the bank balance before any money leaves the account. This makes it much easier to manage short-term liquidity - particularly for businesses where supplier costs are concentrated, such as a construction contractor paying multiple sub-contractors and materials suppliers in the same week.
Payment runs also support stronger supplier relationships. Suppliers paid consistently and on time are more likely to prioritize your orders, offer better terms, and flag potential delays early. Missing or delaying payments, even unintentionally, can result in stricter credit terms or deposits being required on future orders.
Zigaflow manages the purchase order and invoice workflow that feeds into a payment run. Approved supplier invoices can be synced directly to Xero, QuickBooks, or FreeAgent, where the payment run is then executed and reconciled.
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