The payment industry has been evolving at a rapid pace in just the last few years. So much so, that small businesses and merchants have had difficulty staying current with all of the payment industry’s best practices and standards.
The newest standard that is certain to impact many businesses for the better in terms of efficiency is the current integration between “payment transaction processing and accounting software.”
How payment processing integration works is that it facilitates payment transaction information from debit and credit cards to be transferred automatically into a business’ accounting platform or ERP system, whenever a customer makes a purchase. Gone are the days of having to manually key in every single transaction or even reconcile accounts. With this type of integration, all sensitive financial data is safely posted directly into the accounting software. This is comparable to the way money is deposited straight into a business bank account.
If you have yet to automate your finances by using this payment processing integration, you are missing out. As a business, devoting your time and energy to time-consuming tasks are not helping you grow your businesses. Let’s explore why you should bite the bullet and invest in an integrated payments solution.
Customer Preferences In Payments Have Changed
Today, customers want a wide variety of payment options. If you are not offering as many payment methods as possible to your customers, you will be leaving money on the table. With the acceptance of a multitude of payment options, the payment integration will allow all transactions to move seamlessly into the business’ accounting software.
Furthermore, the advantages of allowing a variety of payments help businesses maximize their accounting activities and offer a wealth of revealing information that can help improve the management of the business as well as cash flow.
Four Reasons Why Payment Processing Integration Benefits Your Business
- Time Saving
The money and time saved in not having to pay someone to manually enter each transaction can be significant.
The earlier practice of having batch information sent by the payment processor is eliminated since this information is directed towards the accounting software or the ERP system. No involvement of the business owner or employee is required.
Scales Back Human Error
Human error can mean duplicate entries, incorrect data, or the information applied to the wrong account. This leads to complications such as finding the error, unhappy customers who are overcharged, or inaccurate tax reporting.
The payment processing integration eradicates all complications by simply transferring the data and having it directed to its final destination. This ensures accuracy and an error-free experience.
- Expands Cash Flow
Cash flow is the lifeblood of any business. Without it, businesses can’t fulfill its financial responsibilities like paying its taxes, its employees, vendors, and other costs related to the operation of the business.
Prior to electronic payments and payment integration, businesses had to wait for extended periods of time to receive invoice payments and therefore couldn’t estimate cash flow. An integrated payment processing solution offers dependable financial reports so that business owners are empowered to handle their inventory, payroll, pay their vendor, and make more accurate, strategic business decisions.
- Slashes The Cost Of Labor
As payments are directed to the general ledger instantly after a transaction, there is no need for an accounts receivable employee on staff. Accountants will also be unnecessary,“ to reenter data from credit card transactions to reconcile accounts.”
The Key Takeaway
As more advancements in technology improve daily business operations, one trend that has become standard is the automation and integration of payment processing. It is in the best interest of a business to consider investing in tools that can expedite and safely move payments to their accounting systems, eliminating human error and increasing cash flow.