Outsourcing your payment processing is one of the best ways you can quickly improve the operations of your business. In this article, you will learn seven of the most common reasons businesses choose to outsource their payment processing functions.
Payment processing outsourcing is one of the best ways you can quickly improve the operations of your business. In this article, you will learn seven of the most common reasons businesses choose to outsource their payment processing functions.
As a business owner, you are likely looking for ways to improve your organization. Closely examining your income statement and looking for ways to reduce expenses can be productive. However, this is only the beginning of a very thorough process.
Instead of solely looking inward for possible solutions to your current challenges, you may want to look externally. You can do this by engaging in payment process outsourcing.
From achieving more time throughout the workday to accelerating cash flow, there are many reasons for outsourcing payment services. Before deciding whether to outsource, you will need to carefully weigh the costs and benefits. SmartPayables can guide you through the process.
1. More Time Throughout the Work Day
As a business owner, your time is valuable. Time spent dealing with business operations takes you away from the revenue-generating portion of the business. That costs you money in the long run. Instead, you should consider using an opportunity cost framework to decide which tasks are worth your time.
Rather than waste your time processing payments, you can outsource those tasks to a payment processing service. That leaves you more time to focus on the activities that move the needle most in your organization.
2. Reduced Cost of Payment Processing
Cost is typically the reason businesses are hesitant to outsource, but this concern doesn’t really hold up on paper. In fact, the best-outsourced payment processing companies will save you money on a per-unit basis.
These specialized companies operate on an economy of scale, meaning costs go down as the company grows. As more customers are added, the marginal costs of processing a single payment decrease. This is especially true for companies that still do a large portion of their payment processing on paper, where costs such as ink and paper can be reduced by buying in bulk.
3. Increased Sense of Professionalism
Maintaining your client relationships and providing a consistent sense of professionalism goes a long way. With outsourced printing services, you can add several professional touches that would otherwise be out of reach.
Incorporating your logos into invoices, customized check templates, sending confirmation messages following each payment, and using stylized documents and templates are just a few of the ways these payments can be immediately improved.
4. Added Security
Any time you are discussing payment processing, security will inevitably work its way into the conversation. Losing financial information or exposing yourself to fraud will disrupt your monthly cash flows. It can also severely damage the relationships you have with vendors and clients.
Professional payment processing services are able to dedicate the time and measures necessary to assure all financial information remains secure. You can expect increased levels of cybersecurity for electronic payment methods. Additionally, a payment processing company can provide security measures like special envelopes and thermochromatic ink for paper check payments.
5. Access to Advanced Technology
Rather than spend your time dealing with time-consuming tasks, you can depend on payment process companies to do the same work in less time thanks to their better technology infrastructure.
Due to their specific area of emphasis, payment processing companies are often willing to invest in the technology and infrastructure that most business owners are unable to purchase on their own. These companies can help you set up systems where your books will be updated in real-time.
It’s much easier to make informed business decisions when your books are accurate and frequently updated. Once your bookkeeping and payment processing systems are entirely up-to-date, you’ll be glad you made the initial investment.
6. Personalized Payment Solutions
It’s much easier to offer personal touches to each of your vendors and clients when you work with a specialist. You can outsource custom payment solutions to a payment processing company so vendors can get paid in their preferred way. It’s a convenient service, considering that some vendors may like to receive payment via a paper check, while clients may like to view their accounts through an online portal.
Instead of tediously tracking down your payment partners and trying to gather this information yourself, these tasks can be easily outsourced to a professional service. Due to their extensive level of industry experience and pre-established protocols, these services can help you get a personalized payment system off the ground and running in a matter of days.
7. Accelerated Cash Flows
In order for your business to achieve a state of financial well-being, it is crucial that all cash flows — both incoming and outgoing — are managed in a timely manner. As time goes on, the risk of accounts receivable (and accounts payable) falling through the cracks will steadily increase.
There are quite a few ways professional payment processors can accelerate cash flows. Setting up instant transfers will help assure all money is exactly where it needs to be. Additionally, having a company that can collect on accounts receivable will save you from some awkward conversations with clients.
Conclusion – How to Outsource Your Payment Processing
With each passing year, an increasing number of businesses have made the decision to outsource their payment processing to companies with more experience and expertise. The benefits of outsourcing these services are numerous and wide-reaching. Though you should still conduct an internal analysis before making any final decisions, it may finally be time for you to make a change.
Leave behind the days of manual data entry, print mail for payments, and personally dealing with financial institutions. Let an expert take on the heavy lifting for you and make your life easier.
Ready to find out how outsourced payment processing can help your business? Contact the payment processing experts at SmartPayables at (720) 287-0030 or contact us here.