Bacs payments reduce error
Bacs software has a number of advantages over the old methods of doing things – chiefly efficiency, managing budgeting and the timing of payments, and lowering error in terms of missed payments or theft. bacs payments are carried out by individuals all the time, but any business that makes any volume of payments in a month should certainly look into bacs if they do not already use it as a matter of urgency.
Anyone who has worked in accounts before the bacs era (or in an old-fashioned accounts department now) will recognise how time-consuming it is to make out cheques or pay out specific quantities of cash every month. If you have a large number of employees, or suppliers who regularly need paying, organising this can take a huge amount of time. The same process managed electronically can be totally automated. This not only saves time but substantially reduces the probability of error – writing cheque after cheque you are bound to make a mistake sooner or later, and a cheque that can’t be cashed means wasted time for both the payee and for you as you address the situation.
Bulk payments are one advantage of bacs. Another is keeping to time with payments. If the process is automated, there is no danger that factors beyond your control such as illness or absence prevent payments being made when they should be. The money leaves your account on a specified day (typically taking one to three working days to reach the payee’s account – at least as speedy as cashing a cheque, and often much faster). This is helpful in terms of budgeting, since you can predict when money will be paid out of your account.
For these reasons and others, it’s barely surprising that almost three-quarters of the UK workforce is already paid by bacs. Bacs software is far more flexible than the alternatives, and can be integrated with new or existing accounting programs – thereby taking another layer of work and possible error out of that job, too. bacs payments can be made after the banks close, and even payments made in the late evenings are counted in that day’s transactions. Already widely used, it is likely to become even more so as cheques become less and less popular and as clients and suppliers lack the time to go to the bank to cash them anyway. If you have not already invested in the technology, it will only be a matter of time before you need to.
Please visit http://www.bottomline.co.uk/ for further information about this topic.
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