Electronic payments have been the fundamental element that has enabled ecommerce, and in recent years this technology has grown by leaps and bounds. More and more transactions are being done without checks and without paper invoices. No matter what business you’re in, you can cash in on this trend to cut down on costs. What do you need to know about electronic payments? One of the key points for a company based on sales is that electronic payments can cut down on “float”, or DSO (Days Sales Outstanding) If you charge for goods or services electronically, the time before you receive payment is cut down significantly, thereby improving your cash flow. https://www.cfo.com/article.cfm/3010979/1/c_3046602?f=search
Many companies can offer electronic payment solutions. So if you haven’t built up the infrastructure to be able to accept e-payments on your own, you can start offering the option. These solutions range from PayPal to more complex payment transfer methods. However, expect to pay a small fee per transaction if you outsource your payment method. https://businessfinancemag.com/article/electronic-payments-gain-ground-0201
Encouraging vendors to also use electronic payments can also help your bottom line. This may involve offering an incentive, like earlier payments, in order to convince vendors to include an e-invoice option. However, the paperwork saved by being able to pay bills online will more than make up for any small incentive. https://www.accountspayable360.com/news/news/1617706-1.html
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