Nibletz Staff
Businesses are always looking for ways to reduce their costs. And so when a method of payment is as cheap as digital payment, it makes sense to adopt it quickly. Digital payments can be used for everything, from paying payroll taxes to client invoices. As of 2015, about 60 percent of all business payments were digital.
Here’s why digital payments have gotten everybody so excited.
They’re Fast
There’s usually a significant lag between a payment being made and received. With physical payments, cheques have to be sent and handled in the post. And it can often take days or weeks for the transaction to be carried out. In the meantime, businesses struggle with cash flow, making life difficult. Electronic payments miss out the middle man. This makes payments faster and more secure. And it avoids a lot of the costs associated with payment processing.
They’re Accurate
One Of the biggest problems with paper bills is that they are not always accurate. However, according to Ardent Partner, payments made electronically do a lot better. Their survey found that duplicate payments, overpayments and so on were a lot less likely using electronic systems.
Accuracy, of course, is of particular importance when it comes to payroll. That’s why so many companies are using payroll 1099 software ETC to prevent mistakes from happening. Electronic payroll software automatically updates things like the tax code, helping startups stay compliant.
They’re Efficient
One of the biggest drains on company budgets is the labor time involved in making payments. In the past, companies had to employ clerks in order to process payments. With electronic payment, they don’t have to employ anything like as many. And that means more money to spend on other aspects of the business.
It’s also good news for companies who either make a lot of small transactions or need them to be timely. For instance, advertising companies might benefit from the ability to charge a few pence at a time. And logistic companies might benefit from having money immediately to keep supply chains moving.
They Allow Businesses To Network
Enforcing payment is becoming easier and easier with electronic records. But now businesses are moving ahead into the next level of integration. Electronic payment allows companies work closer with one another. Rather than going through complicated accounting practices, networking makes the process a lot easier. Companies can now manage payments with their strategic partners on an ad hoc basis. And this makes working with other teams far more flexible.
They Help Maintain Healthy Client Relationships
Electronic payments systems are also great at maintaining healthy client relationships. Clients don’t like it when they are charged an incorrect amount. They lose confidence in the company with which they are dealing. And it makes the company look unprofessional and out of touch. Keeping payments accurate helps to build trust with clients and keeps business running smoothly. The best way to do this, of course, is by using easily trackable electronic payment systems. Electronic payments can be checked quickly and amended when needed.
