Nearly everyone in business is familiar with all that’s associated with making payments. As more and more organizations transition to electronic payments, those who haven’t made the leap may want to get onboard. After all, aren’t there more pressing matters than worrying about replacing checks that get lost in the mail?
Automated Clearing House (ACH) payments alleviate the concern while carrying a host of other benefits. These payments are entirely electronic, so you can schedule disbursements for any type of transaction, including vendor expenditures and federal and state tax payments. ACH also can cover employee payments such as payroll direct deposits, expense reimbursements and pension payments.
ACH offers several key benefits to small businesses: advance scheduling, improved efficiency and reduced processing costs. It’s not surprising that in the third quarter of 2018, more than $5.6 billion in ACH payments were processed -- a 6.7% increase from Q3 2017.
Scheduling ahead of time
It’s easy to let a payment slip through the cracks when you’re concerned with managing other tasks. ACH alleviates most of the deadline burden by automating one-time and recurring payments. By scheduling payments weeks or even months ahead of time, you can improve cash flow and devote more time to building your business.
Operating more efficiently
Waiting a day for a check to go through may not seem like much time, but businesspeople know that every minute counts. ACH accelerates the process by allowing you to quickly send domestic same-day credit entries of $25,000 or less for inventory, rentals, utilities and other business expenses. Users can quickly view daily activity through Treasury Internet Banking, fax or secure file transmission protocol (SFTP). The bottom line? Staying focused on running the business.
Reduced costs and other benefits
In addition to easy transactions and instant transfer speeds, ACH services offer other benefits to help small businesses smooth out their operations. Being able to schedule payments before a credit card bill is due doesn’t just reduce stress and simplify processes. It also can improve your credit score and bring rewards from your credit card provider. At the same time, integrating payables with an electronic transaction service reduces processing costs.
By the way, there’s more to ACH than streamlining your financial operations:
Accelerate your payments and decelerate stress. Learn more about ACH disbursements and integrated payables, or contact California Bank & Trust for more time-saving tools.[cite::171::cite] [cite::172::cite]