Times are changing for many young tech companies and start-ups, and the payment systems that were used in the past can sometimes pose a hurdle to doing business efficiently. After all, every minute and dollar counts, so finding a way to streamline your payment process is imperative.
Gone are the days of processing manual payments; outdated systems often lead to inefficiencies that could hold your business back and prevent it from growing.
Optimizing your payment process has several benefits. If you would like a few clues, consider how these five innovative payment solutions can save you time and money.
Automate your accounts payable process
Sorting out manual payments can be a hurdle, especially if you have to chase down approvals, schedule payments manually, and sort out invoices. On the other hand, automating the process saves you time and money. It also leads to fewer errors, minimizing the risk of human error.
For a start-up, that’s more than meeting deadlines; it also leads to business growth; vendors will notice how efficient your business is and will more likely be willing to collaborate with you. Many software tools allow you to approve and schedule payments. Tools like Tipalti, QuickBooks, Sage, and Intacct all offer a fast and efficient way to process and pay invoices.
Use real-time payments to keep your cash flow moving
In the initial growth stages of a business, every day counts; that’s why you want to ensure that your funds are readily available. After all, nothing is more satisfying than getting paid after finishing a job. Real-time payments can make this possible. They allow you to instantly transfer funds without having to wait three to five business days for an automated clearing house (ACH) transfer.
When your funds are readily available within seconds, you can maintain a steady cash flow and reinvest in growth faster. You could utilize many real-time payment platforms like Zelle, Venmo, and others, all of which provide faster transactions.
Optimize payment methods for your customers
When your customers have more than one way to pay you, this leads to higher sales and revenue, and entices them to do business with you more often. Just think; if your customer wanted to pay via instant payment and you only accepted credit cards, they might rethink their purchase and stop doing business with you altogether. On the other hand, if your customers have more than one payment method, that would remove the friction and give them the flexibility they need to pay quickly.
Implement cash flow forecasting tools
Cash flow forecasting tools allow you to predict future cash inflow and outflow. These invaluable tools can be used to estimate future cash receipts and payments. For example, let’s say your cash flow shows a shortage in the next quarter; instead of being left out in the lurch, you can prepare by cutting down more expenses or setting short-term finance goals. You can use online platforms like QuickBooks, Xero, and MYOB, which offer built-in cash flow forecasting tools to help you make accurate predictions and plan ahead to make proactive decisions that can keep your company and business on track.
Take advantage of early payment discounts
Saving more money can be just as impactful as making revenue. In our day and age, many vendors offer discounts if you pay invoices within a certain time frame. If you are a budding start-up, such savings can add up quickly, allowing you to save capital for new business ventures. It also provides a valid reason to establish solid relationships with vendors through consistent early payments, which can lead to better terms and loyalty.
It’s evident that streamlining your payment options leads to a faster, more efficient payment experience, which provides a solid basis for business growth and increases customer satisfaction!
David Messiha | Staff Writer
