bacs software is now a well-established tool that enables you to pay customers and suppliers quickly, securely and easily through electronic transfer. Bacs payments are a far better option than paying by cheque or cash, since you don’t have to worry about keeping substantial quantities of cash on the premises – a potential security issue – or cash-flow problems caused by people cashing their cheques at unexpected points in your financial month. Bacs, which stands for bankers’ automated clearing standard, is a well-tried and tested method of payment that can save you a lot of time and money, as well as having other advantages.
Bacs generally takes three days to clear as standard, although depending on the sending and receiving banks it can be practically instant. If you are concerned or there is cause to make a fast transfer, SWIFT (Society for Worldwide Interbank Financial Telecommunication) is guaranteed same-day. However, this brings an additional cost, so for small payments it is rarely worth it. For larger sums or urgent orders and payments, SWIFT may be a worthwhile choice and the costs will be proportionately smaller if the transfer is large.
One of the great things about Bacs software is that it can be integrated with your other accounting systems and databases. If you haven’t done this, it can be a real headache and a drain on resources, as different transactions have to be logged and entered into different systems. If you take the time to set up your systems correctly, however, you can save a huge amount of time (and potentially expensive errors) and streamline your accounts in a way that is simply impossible if you are using several applications or processes.
Bacs software consultants will be able to advise you on the best programmes for your accounts, and whether your current systems can be used in conjunction with Bacs payments. Migrating your accounts can be a formidable task, though the benefits are exceptional. Once you have completed the process, you can use bacs automatically – paying employees on time, every time; ensuring that suppliers are paid and that customers are respecting their commitments to you; and logging every transaction to make sure that there are no surprises hiding in your accounts to cause problems at the end of the tax or accounting year. Moreover, auditing processes can be used to identify and fix past accounting errors – something which can cost businesses a significant proportion of turnover.
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