Grow Profitability by Getting Paid Faster
You know the importance of cutting costs, now what?
‘Tis the season to tackle one of the common problems that businesses typically face - getting paid and how to get paid even faster.
Yes, we know you’re focusing on turkey, and icicle lights, and your neighbor Paul stealing your acclaimed role as jolly old Saint Nick, but we still have a few days of pre-holiday work left.
So let’s talk profitability! Does your company accept ACH payments? Do you pay with PayPal? How do you send invoices? B2B payments processing offers many opportunities to create more efficient processes and get paid faster.
But what’s the most important step to take to make sure this happens? It’s going digital.
Most business owners don’t relish the idea of getting invoices out. It’s not uncommon that this vital step doesn’t happen promptly or on a regular schedule. True, it’s not fun. And we get that many business owners would rather focus their energy on the products and services their business provides.
One factor that complicates AR immensely is paper. You might create the invoice digitally, but you still print, stuff, stamp, and mail them to customers. This means it could take anywhere from 5-10 days from the time you start the invoicing process to the time a customer receives an invoice.
The solution? Migrate your invoicing process to the cloud. You can create and send invoices online – meaning your customer receives the invoice the minute you press send. And making the invoices can happen easily if your AR solution is integrated with your accounting solution. A few clicks and you’re ready to go. It’s that simple. The AR solution eliminates the days-long time delay for creating invoices and mailing them, as well as costs for supplies and postage.
So your customer has your digital invoice, what are the next steps?
If you don’t accept online payments, they most likely review and approve the invoice and then drop a check in the mail. That process, depending on the customer or business, could take a while depending on your due date and their internal processes.
When the check is mailed, your company has to wait to receive it, then deposit it and wait for it to clear. Not to repeat ourselves, but again this can take days or weeks depending on your bank-run schedule.
If you accept online payments, then your customer has the option to open the invoice and simply click “pay.” They can pay through, say it with us, ACH, credit card, PayPal and more.
Once they pay, the money goes directly into your banking account – eliminating days or weeks of delay. Now, doesn’t that sound nice?
Recurring Digital Payments
If your company offers goods or services on a subscription basis, allowing recurring digital payments will ensure a regular cash flow.
With cloud-based technology, the customer can auto-pay on a set date and with an agreed upon monthly fee. That money is automatically deducted from their account, charged to their credit card or set up as an ACH or PayPal payment and added to your company’s banking account on that date.
Even better, the invoices will be delivered automatically – you don’t have to touch that process to receive money.
Another bonus for going digital is that many cloud-based solutions let you automate AR tasks. The systems not only send the invoices, but follow up on a pre-determined date with a reminder to those customers who have not paid.
Eliminating that annoying paper “middle man” and going digital with payments can have immediate and positive results for your business and its cash flow. It decreases time spent on labor, it enables customers to pay immediately and online, and it puts money in your business bank account quickly and easily.
Now, that’s a holiday miracle.