Save Time and Reduce Hassle with Electronic Payments
Share current LOB: small-business-banking
Online payments and cards provide an opportunity for you to easily gain greater control of expenses with far less time and paperwork. Consider these six reasons to consolidate all of your transactions electronically, and see the chart below for benefits of electronic payment options, both for your business and your customers:
1. Credit and debit cards eliminate much of the work of managing employee spending, including automating employee spending limits, tracking petty cash, collecting receipts and reconciling cash withdrawals:
Credit and debit card transaction data can be exported easily to allocate expenses to specific projects or customers, making it easier to monitor budgets and profitability by customer and project.
Earn rewards and discounts for making everyday business purchases. Putting more business purchases on cards can help you earn rewards that can be redeemed for travel or business purchases.
2. Electronic payments will help you negotiate better terms with your suppliers and customers by:
Improving your knowledge of the flow of raw materials from suppliers. It will be easier to take advantage of discounts for volume purchasing or paying faster. You’ll be able to optimize order volumes to more closely manage inventory without risking shortages.
Automating your customer collections can help you stretch your cash flow, because you’ll save the time tied up in creating bills, mailing invoices and collecting and manually depositing checks.
3. Credit and debit cards save time and reduce errors from lost/late paperwork and manual data entry. Reports are imported directly into your accounting software, reducing the time spent on bookkeeping and account reconciliation.
4. Credit and debit cards help control fraud associated with employee expense reports and petty cash.
5. An online banking solution allows you to see all, or most payments — checks, payroll, tax and credit card purchases — in one place at any time with just a personal computer and an Internet connection. Using financial software such as QuickBooks®, you can easily generate the reports you need to track, analyze and optimize your spending.
6. Reports from electronic payments or cards can be automated, ultimately optimizing your cash flow and protecting working capital from undue carrying costs.
This content is general in nature and does not constitute legal, tax, accounting, financial or investment advice. You are encouraged to consult with competent legal, tax, accounting, financial or investment professionals based on your specific circumstances. We do not make any warranties as to accuracy or completeness of this information, do not endorse any third-party companies, products, or services described here, and take no liability for your use of this information.
In your business, every time someone physically handles a check or cash, it increases the opportunity for fraud. To mitigate this risk, consider collecting money electronically — a safer, cheaper, faster and easier way to collect.