Small Money Saving Tips for Small Businesses
Budgeting is a significant activity in every business. Large companies have not only big revenues but also a budget covering everything from bathroom tissues to Christmas bonuses. When you are a small business, though, you can often find yourself in the situation of having to divide a limited amount of money into smaller and smaller slices to cover everything. One of the most important area to cut back on costs is the finance department, and with the use of payment solutions such as ACH payment processing, streamlining your company’s payment procedures can be useful, easy and straight forward.
Today most people digitalis everything from checking emails to online shopping. We can also use them for secure payments. Automating and digitizing payments can be efficient and reliable. Why do we still use printed checks and invoices then?
Using practical solutions such as ACH payment processing can actually lower your overhead as a paperless payment methodology. Automated Clearing House (ACH) is a payment solution that electronically transfers funds from one bank account directly to another. ACH payment processing is extremely efficient compared to conventional payment methods. Traditionally, paper check payments involve many time consuming but necessary procedures, such as printing, cutting, signing, verifying, delivery and mailing, waiting for the mail to arrive, as well as transporting it to the bank and waiting for the check to clear. The entire process is not only time consuming, but also eats up your company’s workforce, such as having to assign staffs to transport these paper checks to the bank during office hours.
With ACH payment processing, the entire process is automated and computerized, shortening the process time as well as freeing up manpower for more productive tasks. Besides, since payments are electronically executed and automated, it also means fewer humans are involved in the payment process, which reduces the possibility of manual errors such as misplacing or damaging a check. ACH payments eliminate the reliance on paper checks, which means the company no longer need to waste money on printing, transporting and allocating staffs members to waste time physically banking them in. Moreover, ACH payments can save you money on transaction fees. Credit card payments can charge your business up to 5 percent on each transaction, whereas ACH payment processing fees are typically less because the transactions are dealt with in bulk batches, resulting in significantly lower costs.
Compare Banks and Payment Services
Banks are invaluable partners for businesses, yet their services cost money – and sometimes these costs are unnecessarily high. Competitors often have better rates, and you can use this to your advantage.
ACH processing is an excellent alternative to traditional payments. ACH process allows businesses to make direct funds transfers between two bank accounts. As a growing and prevalent alternative option to conventional paper-based payment methods, ACH payment processing is generally being used for direct deposit payroll, payment of monthly bills, invoices, subscription-based services and a broad range of payments that are of a recurring nature.
Buying Second-hand or Leasing Equipment
In most industries, office equipment takes a huge chunk from the budget of start-ups. Additional equipment for growing businesses also requires a sizeable investment. Therefore, you should consider buying second-hand equipment. Also, opt to lease equipment especially if you only need them for the short-term. Lastly, try to avoid “upgrading” your gear just because a newer version is available.
Competition is inevitable in any industry, and businesses need to proactively look for new ways to save money on business operations. ACH payment processing can help companies save a sizeable amount of money on transactions, which is also the main reason to why ACH payment processing is an attractive payment option to many.