EFT in Accounts Payable Replaces Paper With a Controlled, Bank-Ready Process
Electronic Funds Transfer in MIP® allows approved Accounts Payable vouchers to be converted directly into NACHA-formatted bank files. Instead of printing checks, signing them, and mailing them, the system generates the transmission file your bank requires to release payments electronically.
This changes the workflow in practical ways. Cash moves faster because settlement timing is predictable. Manual steps are removed, which reduces the chance of processing errors. Check stock, envelopes, and postage are no longer part of the monthly routine. The approval process stays intact, but the output is designed for how banks actually work today.
EFT also improves control. Payment files are generated from approved vouchers, creating a clear link between authorization and disbursement. When issues arise, the trail is easier to follow because fewer handoffs exist between approval and payment.
This video is for accounting teams that want to modernize A/P without weakening controls. It is not intended for organizations that prefer paper checks despite the added handling and delay.
McGovern Consulting Group provides MIP Accounting® Training and Implementation Services. We focus on payment workflows because efficiency gains come from using the system as it was designed, not layering manual steps on top.
If you want to move from paper checks to electronic payments without disruption, schedule time with us to review your EFT setup.
https://mcgoverncg.com/schedule/
If you want to strengthen your MIP fundamentals first, free MIP® fund accounting training is available here.
https://www.freemipfundaccountingtraining.com/
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