Many businesses across the country still accept paper checks as a form of payment. And while this form of payment remains a “go-to” for many individuals, it actually slows down the efficiency of your business while also putting your growth and security at risk. Accepting checks and payments electronically streamlines your accounts receivable, while providing an extra layer of security for your organization. And there are other benefits too. Here are the top 5 reasons why you should leave paper checks in the past:
1. Increased Risk of Fraud
Companies that pay by and accept payment via paper checks know there are associated fraud risks. In fact, check tampering is far more prevalent in the United States than anywhere else in the world. Industries such as nonprofit, construction, professional services, health care, and insurance are particularly at risk. On average, it takes 30 months to uncover check fraud due to the fact that the majority of it occurs internally through a manual process.
2. Less Control
The approval process for paper-based checks and invoicing is not only tedious but also inhibits a timely approval process. Management has to be physically in the office in order to sign off on checks. When they aren’t in the office, most folks put the check underneath other mail or even right on their desk, leaving it at risk of being taken or forgotten. The resulting delays and confusion is simply counter-productive, wasting valuable business hours just to process a payment
3. Higher Cost
The entire process is very manual and leaves room for error. With physical checks, you need to print the check, verify the amount, get the check signed, address the envelope, pay for postage, wait for the check to be delivered … you get where we are going here. This archaic process wastes staff time and can cost anywhere from $4 – $20 each time. This is time and money you could be putting towards other critical business functions.
4. Low Visibility
Business leaders need real-time visibility into their business in order to make timely and smart decisions. With the time it takes to accept and process paper checks, you lose real-time visibility. Thus, you miss out on valuable opportunities for growth across all departments. Processing physical checks also makes you jump through additional hoops to add data to your accounting system. This leaves plenty of room for data entry errors or missing information that could compromise the accuracy of your finances.
5. Environmental Impact
Sustainability of our environment is not only important to more and more businesses, but also to customers of all ages. Nearly 47% of 18-65 year olds have said they will pay 25% more for a product that is produced sustainably. Pro-environmental initiatives and policies are a huge driver of customer loyalty no matter what business you are. Make the switch to paperless checks and take advantage of the PR opportunities that come with helping our environment!
If those reasons aren’t enough, here’s an additional incentive: most accounts payable departments will shave off about 75% of their costs by automating payments online. By switching to an online checking system you can save your accounting team time and resources.
How Do You Start Using Online Checks?
Simple: find an accounting software that can produce and accept online checks. For the best results, it’s vital to have the right accounting technology in place. Besides being able to handle the amount of payments you make and receive, you’ll want a flexible software that can meet your key requirements and work with the dynamics of your unique business.
Accounting Seed is a full general ledger accounting software that connects to over 14,000 banks and credit card companies. Additionally, Accounting Seed offers automated accounting features that both increase accounting accuracy and streamline your overall financial management. You’ll also gain access to electronic checks by leveraging the connection to Checkbook.io. Both apps are native to Salesforce and seamlessly connected to one another, ensuring there are no sync issues or duplicate data.
Here’s How Accounting Seed and Checkbook Are Integrated:
When integrating Checkbook and Accounting Seed, your Digital Checks can be sent instantly through your Accounting Seed account in just a few clicks. Both Checkbook and Accounting Seed deliver our patrons one complete finance and Digital Check payment solution directly on Salesforce, just the way our users like it! Best of all, your recipients will receive an email that enables them to deposit Digital Checks online.
To merge Checkbook and Accounting Seed:
- Make an account on Checkbook.io.
- After creating an account, navigate to the Integrations tab on docs.checkbook.io.
- Install the link and authorize your Salesforce account to be integrated with your Checkbook account. It’s as easy as sending a Digital Check!
For more information, please follow Checkbook’s official User Guide for current Accounting Seed users.
Want to say goodbye to paper checks today? Learn more about Accounting Seed’s connected app partner, Checkbook.io, by visiting their partner page!