Making Payments Electronically Improves Cash Flow, Saves Time
As a small business owner, you may take a lot of pride in signing cheques to make B2B payments.
Especially so if you sign your name on cheques in an over-the-top, illegible cursive fashion like a pro hockey player while you pretend there’s a long line of adoring fans awaiting your signature.
But whether you’re stilling having delusions about being an NHL star or just like doing things the old-fashioned way, moving forward in the B2B payments world to make payments electronically can deliver a ton of benefits to your business.
1. Making B2B Payments Electronically Improves Cash Flow
With half of small businesses failing within five years, one of the biggest culprits to blame is cash flow.
But by automating your B2B payments electronically, you can do away with your business’s reliance on the use of traditional cheques. And with it, you reap the benefit of being able to better spot, track, and assess patterns in your cash flow and make improvements faster.
On top of this, processing B2B payments electronically can get payments to you in less time as well while simultaneously doing away with your clients’ need to write and mail cheques, making their lives easier.
2. B2B Payment Solutions Make Bookkeeping & Taxes Easier
As much fun as it is for you or your team to keep track of dozens, maybe even hundreds, of cheques going through accounts payable/receivable each month, things can easily get lost in the fray.
And like that one sock in the pair that runs away into the Narnia of your laundry, even one late payment or late deposited cheque can reap havoc for you, your contractors, and your clients. With an electronic B2B payments solution, payments are often automatically recorded and integrated into a new or existing bookkeeping system like PaymentEvolution’s software with FreshBooks, Quickbooks, Xero, Sage and Kashoo.
When it comes time for bookkeeping and taxes, integration streamlines the process for your team.
3. Electronic B2B Payments Save You Time and Money
Besides simplifying bookkeeping and taxes, sending B2B payments electronically saves time and money.
While issuing and receiving a cheque to pay a traditional invoice can often take 30-120 days, an electronic B2B payment solution can be sent or received instantaneously. Once again, this improves your relationship with your clients and partners by saving them the time of manually writing and mailing a cheque, and because of this you don’t need to waste time updating this information in your system.
Along with time, hard-copy cheques can often cost about $2 each, whereas B2B payments electronically can cost you as little as 85 cents per business transaction.
4. B2B Payments Electronically Make Your Payments More Secure
Although saving time and money is important, your business’s security is paramount. Conducting your B2B payments electronically helps increase your protection and make your payments more secure.
Most anti-hacker security built into B2B payment software will safeguard your business against theft and fraudulent activity, and sending cheques by mail can leave you more susceptible to having them stolen or your information compromised.
5. B2B Payments Help You Streamline Payments Across the Country
If your company does or will do business in other areas, B2B payments electronically are a must.
Contractors, vendors, and suppliers across the country want to be paid in a manner that best suits them, which is often as quickly as possible. In order to retain a strong relationship (and their interest in doing business with you), make your payments instantaneously with a B2B payment solution.
Add Electronic B2B Payments Now
Want to send and receive payments faster while saving time and money? PaymentEvolution’s secure electronic payments software allows you to pay anyone in Canada at the click of a button.
Don’t have a PaymentEvolution account? Get started in under 5 minutes.