Why Digital Payment Is the Best Thing for Small Business
Every contractor, freelancer and vendor has heard these five dreaded words at least once: “The check’s in the mail.”The unpredictability of payment has historically been a plague for service providers. However, long payment windows — whether due to a mix-up at the post office, a piece of mail that doesn’t get sent, a tangle with accounts payable, or plain old human error — aren’t just difficult for those waiting for compensation. Outstanding checks can wreak havoc on small business bookkeeping, too. Fortunately, recent advancements in billing make it possible to process payments that directly and automatically transfer funds to workers — a boon for both payer and payee.
Updates to existing payment platforms, such as PayPal, and new digital payment options like Square Cash and Venmo, make it easy to transfer small amounts of money for goods and services with relatively low (or sometimes no) fees. But, it’s the speed of the transaction that makes these services truly beneficial.
In an economy with people performing tasks for each other from all over the globe, sending money orders or checks long distances forces everyone in a transaction to wait long periods of time to satisfy a contract. This doesn’t work well in today’s fast-paced business climate. When you pay vendors or other workers through a venue such as Square Cash, the money goes straight from your account to theirs — ensuring you don’t have to wait and neither do they.
Digital Payment Is Transparent
Cutting checks can quickly result in a quagmire of spreadsheets and other paperwork, and even the most careful of bookkeepers can get overwhelmed by the volume of payments coming in and going out. With digital payments, both parties receive receipts immediately and can search through email, text messages or personal accounts to ensure payments have been sent and received. You never again have to guess how much is in your business account. With digital payments, you know immediately.
Digital Payment Handles the Heavy Lifting
Digital payment platforms can also meet other e-commerce needs, including credit card processing and point-of-sale solutions. By moving your business finances to one easy-to-use platform, you can consolidate your billing and receiving into just one or two dashboards, leaving you more time to focus on running your business.
Mailing checks to pay for services is archaic, and it doesn’t mesh with the way businesses operate now. For the new generation of business owners and workers, digital payment just makes sense.