The average business receives payments through multiple methods. You might receive cash at the cash register, checks in the mail, and cards online. Chances are you run all three systems separately, so you have one dossier for cash, one folder for checks, and a bank statement for credit card transactions.
Fortunately, if you have the right tools, you can combine these systems. Credit cards are accepted using a merchant account at a payment processor. They make customers feel safer because they don’t have to input their card details. They can simply be redirected to their existing account with their payment processor.
Some merchants use a single system that covers checks, cash, and cards, all on the same platform. They can generate a single sales report that contains all forms of customer payment. As a business, you can go one step further and link your payment processing system to your accounting system. Why is this a good idea?
It makes life easier
In the past, you had to manually input your sales data into your accounting system. Even if you have a good merchant processor that combines all your income, you still have to enter the transactions into your accounting reports. This task is labor-intensive. It takes a lot of time, and the longer the task duration, the more likely they are to make mistakes. If your payment and accounting systems are integrated, every transaction is automatically entered into your accounting books. You can review your transactions in real-time.
It cuts costs
How big is your accounting team? You may have senior staff to deal with payroll, suppliers, and labor matters while a junior accountant or intern deals with the drudgery of data entry. They may be in charge of reading your credit card reports or backing up the receipts in your till. They then input this data into your accounting books. This work has to be paid for, and there are associated costs like computer time, internet bandwidth, printing paper, ink cartridges, and even electricity. Automated integration eliminates all these costs.
It improves your cash flow
One of the biggest challenges that any business faces is cash flow. You may notice that you’re making a lot of sales, but somehow you have a hard time translating this to the business. You have to buy raw materials, pay suppliers, cover overheads, re-stock strategically, and make sure everyone gets paid. But a lot of times, the cash gets spent before business bills are paid.
With all your systems integrated, you can tell what your fiscal situation is at a glance. You know how much is coming in, but you can also see where it needs to go. This way, you can prioritize your expenses more effectively, which is better for your business as a whole.
For more information on the benefits of payment processing integration, or to sign up for a merchant account, please call (888) 924-2743 or go to Charge.com.