How to Streamline Your Business Payments
Businesses make and receive all kinds of payments, from paying their employees and suppliers to receiving payments from their customers. When you are running a business of any size, all these payments can become entangled, and it can be difficult to know who you have paid, how much you have paid, how much your customers have paid and if you have any cash left over to handle other aspects of your business. To ensure this does not happen, it is vital that you find ways to organise and streamline your payments. Below, we will look at a few things you can do to streamline your payments both to your employees and suppliers, as well as how to streamline your customer’s payment process.
Make Things Easier for Your E-Commerce Customers
If you do not have an e-commerce website, you should make plans to have one as there are lots of benefits involved. One of these is the ability to sell to customers without them having to interact with your business directly. Sadly, a lot of e-commerce websites have long, convoluted checkout processes that make customers leave before they complete the purchase process.
To ensure these customers do not leave, which improves your revenue, it is vital that you make this process as easy as possible. In addition to making you more money, a streamlined payment option also leads to happier customers, and these happier customers are likely to become repeat customers.
Automating your payments is one of the best ways to streamline them. Automation offers you several advantages, including:
- Making payments easier to track.
- Improving the accuracy of your records.
- Reducing the number of times you have to go through your books.
A good place to start in your automation process is to get a payment and bookkeeping software. This software lets you see how much money is coming in and lets you pay your suppliers and employees easily. This software can also be connected to all your income and payment records to make it easier to balance your books if you do not have an accountant. For collecting payments, this software can be integrated with your card machines. These machines allow your customers to pay easily using a card reader and their credit cards.
Besides making it easier for your customers to pay you, they can also make it easier for you to pay your suppliers if they accept credit cards. If you want to make things easier for yourself, go with this card machines provider. UTP Merchant Services Limited offers different card machines with several advantages; they accept all kinds of credit cards, including Visa and Mastercard, and they are one of one of the few card machines providers that work with Barclaycard. Their Faster Processing product process payments within one hour as opposed to 3-5 days like other card machines.
Plan Your Payments Properly
Planning your payment properly means paying your suppliers when you have the cash to do so. For this to be possible, you have to plan your payments correctly. Always keep an eye on your cash flow to ensure all your payments are in sync. For example, if you know your customers purchase more on the weekends or at the end of the month, make the necessary arrangements to pay your suppliers at these times.
Ask for Discounts
Asking for discounts has several benefits:
- You pay less for inventory if you pay earlier.
- You are encouraged to pay early if the discounts are pegged on you paying in by a predetermined date.
Both of these things can help streamline your payments because if you pay less for inventory, you are likely to pay before the due date. The discounts will also pressure you into paying early, which is another way of ensuring you are not late with your payments.
Always Be on the Lookout for New Digital Payment Technologies
We have come a long way from when businesses needed to wait for cheques to clear before sending products to their customers or paying their suppliers. Technology has made all these things easier and new technology is always emerging to help streamline these payment processes further.
Every business should be on the lookout for new digital payment options and technologies, as these can afford them more benefits than they currently enjoy. For example, these new options might have lower fees, support more countries, or even give you lots of new ways to access your money.
Hire Someone to Do it All
As your business grows, it will become harder to handle your business’s payments yourself. When you get to the point where you are missing deadlines or cannot keep track of what is coming on or going out, it is time to hire someone to handle it all for you. Usually, a business will hire an accountant, which is the best option in almost all cases.
Every business should have a system of tracking all their payments, regardless of whether they are coming in or going out. This system should be streamlined so the business owner is always up to date on what is happening, and they can take a snapshot of the business’s financial health whenever they need to.