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If you’re looking for ways to improve your day-to-day business operations, you should consider outsourcing payment processing. From processing payroll to paying the bills, the average business makes numerous payments every month; that translates to a lot of resources spent on making these payments. A check printing company like Checkissuing takes the burden off of your employees, plus they provide enhanced security and better cost efficiency in general.
That’s the overview, anyway; there are plenty of other details to know. Of course, this won’t always be a cut-and-dried choice for businesses. Some of them might be too small for this to be a good fit, while others simply prefer to keep everything in-house. Even so, increasing numbers of businesses are benefiting from outsourcing payment processing; maybe it’s time for you to find out why!
#1: Accelerated cash flow
The cash flow of any business involves a lot of moving parts. If one (or several) of those parts gets interrupted, that could cause many problems. Not every company has an all-star financial department, so if payments are known to fall through the cracks sometimes, that doesn’t do your business any good financially, and it definitely doesn’t build trust with your vendors.
Payment processors (like check issuing services) ensure this kind of thing never happens. They ensure that each payment is made on schedule, from paper checks to electronic transfers. Some companies collect on accounts receivable, meaning you or your employees could skip some potentially awkward conversations.
#2: Customized payment solutions
Some vendors want to be paid by check, others prefer ACH transfers, and others request payments in forms you’ve never heard of before. There are a million ways to send money to people, and the bigger your business is, the more of these your accounting department will have to deal with. Take it from someone who knows – this does not promote organization or efficiency when dealing with accounts payable.
A payment processing service, on the other hand, specializes in these situations. As long as the vendor isn’t asking to be handed a bundle of cash in front of a local gas station, the company will likely be able to personalize whichever form of payment they’ve requested.
#3: Access to advanced infrastructure and technology
If you’re like most businesses, chances are you don’t want to spend all your money on the accounting department. Plenty of advanced accounting programs can help you make savvier business decisions, but they can be pricey – especially once you factor in the installation cost. Some payment processing services already have these systems in place, so you could gain insights into your finances while also outsourcing payment processing. Your books will be up-to-date, validated, and accurate, which will help you make wiser decisions on when and how to spend your money.
#4: Enhanced security
There are all kinds of reasons why a business would want to decrease the risk of fraud. For one thing, it can be extremely costly. For another, it can damage the trust between your business and clients or vendors, which can impact your bottom line. You may already have measures in place to protect against fraud, but you can be absolutely certain that whatever you’re doing, a payment processing company does more. They have the resources for it, plus it’s necessary in order for them to do business in the first place. After all, nobody will hand over that much confidential financial information unless they’re sure it’ll be safe. You can expect increased cybersecurity and security measures like thermochromic ink and special envelopes for paper checks.
#5: Increased professionalism
Just like checks are regarded to be more professional than cash, using a payment processing company looks more official than issuing your own payments. Not only could the company be more consistent, but they’ll also be able to personalize everything your vendors get from you fully. Checks, invoices, confirmation messages, and everything else will have polished templates and incorporate your company’s logo (and other relevant details) for a more put-together look. It may not be the most vital part of your relationships with vendors, but it’ll definitely make you look good.
#6: Reduced cost
If you’re looking at pricing plans and wondering why anyone would pay for a service they can easily do, you’re only getting half the picture. You’re still paying to process your own payments; it’s just that the cost is being hidden among a bunch of other things. Did you know that the average check costs between $4 and $20 to write? This is not only because of the materials involved but mainly because of the cost of labor. If your business writes a large number of checks each month, that could add up to hundreds of dollars that could be better spent elsewhere. In many cases, businesses actually save money by outsourcing payment processing.
#7: More time to spend on other tasks
Filling out and mailing a check might not seem like a big deal, but what about taking care of dozens to hundreds of payments per month? Just like the cost per payment, the time spent taking care of them adds up quickly. What would happen if you or your accounting team had several hours more per week to spend on other tasks? The time could be spent networking with potential new accounts, diving into financial details so you could make more informed business decisions, or simply catching up on work that wasn’t time for. Outsourcing payment processing might not seem like it brings obvious benefits to your bottom line, but the possibilities are clear once you take a closer look.
The takeaway
There’s something to be said for a “do it yourself” attitude, but that could be counterintuitive regarding payment processing. Enhancing efficiency is a vital part of growing a company. Using a payment processing service could be a great way to save time and money while building your reputation as a trustworthy business.
You may also like: Essential Things You Should Know About Credit Card Processing Service
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