Nov 6, 2018 by Matt Dixon
Even small businesses send out $400,000 of invoices every year. With so much money on the line, getting your payments right is vital.
As a rule, people don't like change! So it isn't surprising that many businesses are still using paper invoices. But Payment software is a better option for modern businesses as it greatly reduces the chance of mistakes, and added benefits as well.
Don't just take our word for it. Read on for seven reasons your business should use payment software.
A major advantage payment software offers small and medium businesses is the time-saving opportunities. Individuals are no longer required to manually enter credit card and other electronic payment details. This really speeds up the payment process.
Batch information from the payment processor can now be set up to immediately appear in the payment software. The transaction data flows into the system with no employee or business owner interaction.
This means no more cross referencing Excel spreadsheets! This is a huge advantage and really boosts efficiency.
Payment software is one of the ways in which you can cut your business costs.
Payments will feed directly into the general ledger at the moment of payment. This means that it is no longer necessary to have a dedicated receivable employee on payroll. You also won't need to pay an accountant to only reenter data from credit card transactions to reconcile accounts.
You will also save on costs and time spent training employees to process payments as the process is now much simpler and easy to learn.
As with any process, adding in the human element increases the opportunity for errors. This can come in the form of duplicated entries or data being incorrectly registered or applied to the wrong account. In all cases, the results can be serious.
Overbilling or not having a payment attributed against the right customer account can lead to incorrect tax reports. More immediately, it can also be hard to locate errors in the face of a frustrated customer which can lead to further complaints.
With payment software, data flows seamlessly from the point of a transaction to the general ledger or immediately credits against an invoice. This eliminates entry errors and provides confidence in the accuracy of accounts.
Payment software gives you the opportunity to move data to the cloud.
All client information is saved in the cloud with online invoicing software. Names, addresses, payment terms, and payment methods are all saved and protected.
By logging into your account and selecting the client, you can invoice them. You input the number of hours worked or products provided. Pick your due date, click send and an electronic invoice will go to the client.
Not only do you not need to worry about losing invoices or client data, but you don't need to worry about mail issues or computer crashes either. Everything is automatically saved online and stored. Your account will have everything you need to start billing your clients.
Security is a huge priority and it is one of the reasons many implement online payment software. A reputable online invoicing software is very secure as they must adhere to Security Standards.
SSL certificates will show your website as protected. This will, in turn, grow your online reputation. It also means all information such as credit card details and other sensitive details will be protected. Brand awareness will also improve as will your credibility with customers.
Online payment software can also provide extra elements to improve security. 3D Secure, for example, creates a secure password for a customer's credit card.
Every transaction will need to be verified with this password, adding an extra layer of security. It decreased the number of fraudulent transactions and can boost your revenue.
Address Verification Service is another feature which requires customers to give the billing address associated with their credit card. As long as the address provided matches that of the one the bank holds on record, the transaction will clear.
As any small business knows, having accurate and up to date information on the state of your cash flow is vital.
No matter how good your products or services, you cannot keep running your business if you can't pay your bills. Employees, vendors, taxes and operating costs all need paying regularly and on time. But your customers don't seem to have the same concerns!
If you are still using paper billing you are often faced with long waiting periods for invoice payments. This means that your cash flow is unpredictable at best.
Payment software helps to remove some of this uncertainty. They provide up to date reports on how much money is available daily.
They can also keep track of how much money is outstanding, and who owes it. This will help you react to overdue payments far faster, and plan out your know expenses.
An online payment software can reinforce your brand's identity. There are generally options to add your logo, color scheme, and fonts that match your brand.
When you strengthen your brand identity, you increase your chances of getting on-time payments.
Customized messages also give you the opportunity to upsell. Your "Thank you for your payment" message could be used to promote new products or services by linking to similar products in your catalog.
All of this may seem trivial, but as part of your larger brand recognition drive, it can have a real impact on the way your company is viewed. The more professional you look, the more trust your customers will have in you.
As you can see, there are plenty of benefits to using payment software.
You save time and money, reduce the chance of error and improve your security. You can even use it to build your brand and improve your cash flow. Not many business changes can offer such great benefits!
If you are thinking of implementing payment software in your business, contact us at Front Range Systems. We have a proven track record of integrating our experts with your team to provide quality results at the best value possible.
Reach out to our team of experts to start the conversation for your next project.