Bacs, or Bankers Automated Clearing System, has now been around since the late 1960s. It is the UK’s way of making electronic cash payments. Bacs payments mean that you can provide a business with your bank details – account number and sort code – and have money transferred directly into your account. This naturally has numerous advantages. Speed is one of them – bacs happens almost instantly in lots of cases (although this depends a lot on the banks in questions – some transfers between some banks can be extremely fast, whereas others can take three working days, which is the standard time advertised in the industry). In any case, even the three-day limit is probably as fast, in many cases, as paying in cash or a cheque and waiting for it to clear. Convenience is another benefit – it reduces trips to the bank, and therefore leaves more time for other things. Security is another obvious one; it prevents the need to have large quantities of money on the premises, which might be a particular problem on payday. In the past, this would have meant that the whole company’s payroll was present – a clear risk. bacs software can therefore be a huge advantage for modern companies.
If you operate a small business – or anything larger – you will likely benefit from incorporating such bacs software into your accounts procedures. Automating invoice payments greatly simplifies the monthly (or more regular) task, since everything can be automated to the desired degree. This means that you don’t have to do the job by hand. Even if you still use online banking, thereby avoiding the issues with writing lots of cheques or, worse, handing out physical cash, setting up and paying all the amounts can be a tedious process. It’s also likely to mean a lower degree of mistakes, and therefore less problem with duplicate payments, fraud and other issues than can eat away at your profit margin through poor accounting procedures.
Bacs is fast and easy (SWIFT, a faster version, guarantees same-day payment, for a fee). Bacs payments have so many advantages that it’s useful for any business to explore bacs software as an option for paying invoices. In the 21st century, cheques and cash are less and less common payment methods, and the future of the cheque itself is becoming increasingly uncertain. Simplicity, security and reliability are three reasons to look into the system more closely, if you haven’t already.
Please visit http://www.bottomline.co.uk/ for further information about this topic.
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