The journey from paper to ePayment
Many businesses have already made the transition from paper payments to ePayments. If you haven’t yet adapted to the electronic revolution, there’s a lot to gain to enhance the efficiency of your business.
The potential benefits
Perhaps the greatest advantage of receiving ePayments over forms of paper money is the speeding up of your cash cycle. By processing payments almost instantaneously, the time between actually selling a product or service and receiving payment for it, has shortened considerably.
Other noticable benefits of converting to ePayments include:
- Cost savings – less paperwork means less staff hours to process it.
- Improved operational efficiency – payments can be logged automatically on cloud based accounting software.
- Reduction in fraud – particularly the risks associated with cheques.
- Greater transparency over transactions.
Your business’s relationships with its suppliers will likely improve when changing to an ePayments system. You’ll be able to pay them faster and more effectively – and you might create some leverage to negotiate discounts thanks to your improved payment times.
Better financial management security is a likely result. It’s safer to have transactions take place electronically than to offer temptation to your staff and customers in the form of cash and cheques.
Your business should also experience an increase in productivity – it’s faster to pay by EFTPOS than to write out a cheque.
The costs involved
Consider the costs that are involved with setting up an electronic payments structure. What resources will have to be allocated to getting one installed? These will probably comprise of:
- Money – purchasing the hardware and software required.
- Time – the changeover period, which may also take you or your staff away from their core roles.
- Staff training – they need to learn how to use the new system.
Over the long term, these costs will more than be made up for with a more efficient (and therefore profitable) payments system.
Deciding to change
If your business has decided to move to ePayments from a traditionally paper payment routine, first evaluate your old payment methods. Take note of your current payment mix and the needs of your suppliers and customers.
Come to some realistic objectives, within a timeline, to help your business smoothly transition to a system that uses ePayments.
ASB already has the tools to help facilitate your business’s transition from paper to ePayment. The combination of real-time online banking and 7-day settlement means you will see all your sales from that day in your business account that night, no matter if it’s a weekend or a public holiday.
Our ASB Mobile Business app allows you to track incoming funds, transfer balances between accounts and approve payments while on the go, doing the work that is important to your business’s success.
To find out more, contact one of ASB’s Business Banking specialists today.