Why This Award-Winning Accountant Insists on Using Digital Payments
Most people don’t think twice about using digital payments for everything from buying shoes to paying friends back for movie tickets. While digital payments have become commonplace among consumers, the business world is a bit slower getting on board. Now, however, more and more companies are realizing the time- and cost-saving benefits of digital business payments. If your company has yet to make the switch from paper to digital, read one leading accountant’s views on why it’s a good time to give it a try.
Vanessa Kruze is the founder and CEO of Kruze Consulting, an accounting firm that has advised over 1,000 startups, including market leaders in the SaaS, eCommerce, eHealth, software, and fintech industries. Under her leadership, Kruze Consulting has earned recognition as an Inc 5000 fastest-growing company, an Intuit Firm of the Future runner-up, and the 2016 Expensify Emerging Partner of the Year. Kruze’s clients have collectively raised over $500 million in venture capital funding in the past year and on average one or two are acquired every month.
Kruze knows a thing or two about well-run businesses and helping fast-growing companies manage their finances. As she explains, switching to digital business payments is key. It is a simple and secure way to boost your efficiency and scale your business.
How many of your clients now pay bills digitally?
All of our clients use digital business bill payments. That wasn’t the case even just five years ago—mailing paper checks was still a common thing back then. Today, though, 100 percent of our clients use digital payment services.
The switch isn’t surprising given that our clients are cutting-edge technology startups. These kinds of companies understand firsthand how technology and online services can help a business boost productivity, reduce the risk of fraud, and ensure seamless compliance with IRS standards. They serve as great examples for other businesses that might not be as tech-forward and are still hesitant about embracing digital business payments.
Why do you recommend using Bill.com for digital business payments?
We recommend Bill.com for three main reasons:
First, paying digitally with Bill.com creates a solid audit trail in your system. With the way Bill.com sets up permissions, you can easily give others limited access to those audit trails when you need to. These permissions make it infinitely easier to share necessary information when you’re dealing with important matters like audits, fundraising, selling the company, or loan applications.
Second, the IRS typically requires businesses to save a record of at least three years’ worth of paid bills. Trying to keep track of the necessary records can be an organizational nightmare when you’re still dealing with physical paperwork, and it’s easy to make mistakes. When you pay digitally with Bill.com, the records are saved automatically, right in your account.
Finally, using Bill.com makes your CPA more efficient. We all know that accounting services aren’t free, and anything that boosts accounting efficiency means savings for your business.
How does paying bills digitally impact cash flow?
Digital business payments place all your past, present, and future bills in a single, centralized system. It is easy to see the big picture of your total cash outflows. Paying with paper checks makes it much more difficult to keep track of bills and upcoming due dates—and you never know exactly when a check is going to get cashed. Rather than having to organize mountains of paper files and stay on top of due dates, with Bill.com, you can automatically view all your upcoming expenses in a single place so you always know what is due and when. Even better, you schedule exactly when you want funds to leave your bank account. So, you always know precisely where you stand.
How do digital business payments with Bill.com compare to bank payments or paper checks when it comes to security?
Paying digitally is far more secure. With Bill.com, you can grant limited permission and access to only those specific people who need it, which prevents others from stealing confidential information. It also allows you to give someone the power to pay bills without having to share your bank account passwords. When your payments run through a single system, it’s easier to constantly monitor your company’s payment activity. There’s a digital trail. Every payment is not only date and time stamped, you also know exactly who approved and made it.
Do you recommend AP automation?
We don’t just recommend it, we require it.
Manually handling AP wastes time and money, and our clients see that. Not a single client gives us pushback when we mandate that they use Bill.com. Everyone can now focus their time on more valuable work rather than pushing paper around.
To find out how digital bill payment can benefit your business, sign up for a 30-day risk-free trial of Bill.com today.