Why Are So Many Businesses Using BACS Software?
BACS stands for Banks Automated Clearing System, a system that was originally set up by the banking industry in the UK in order to develop a secure and effective way to process multiple financial transactions. With businesses growing rapidly, the need to manage finances in a quicker and more efficient way has become an immediate essential requirement. A financial payment plan is needed to carry out the day-to-day transactions of a business such as receiving payments from customers and making payments to employees or suppliers.
Managed and operated by many of the leading banks and building societies, BACS payments are the number one way to both send and receive money all over the UK.
BACS Payment Schemes Limited
The purpose of this system is to transfer funds directly from banks using a secure, internet-based service called Bacstel-IP. It is the largest Public Key infrastructure in the world, which can cater to several types of transactions including direct debit, BACS direct payment, and faster payments.
Direct Debit is a simple and cost-effective way of receiving repeated payments. These are made by customers who give banks the permission to collect payments from their account on a regular basis. It is safe due to UK’s Direct Debit Guarantee, which protects customers from financial frauds.
It is commonly used for payments such as tax credits, state benefits, pensions, and salaries. One of the best features of BACS payment schemes is that its processing does not take more than three days, making it an ideal situation for businesses that need payments processed immediately.
BACS Payment and its Benefits for Businesses in the UK
Smart businesses handle their finances more carefully and efficiently as the days of managing matters manually have been long gone. With the help of BACS payment scheme, multiple financial transactions can be managed easily. The main reason for establishing this system was to provide individuals and businesses with a secure and efficient way to process payments. Over 120 billion financial transactions have been carried out since its inception, making it a trusted source to manage direct electronic transfers of funds.
Automated BACS payment solutions have made it easier for businesses to conduct their financial transactions swiftly. It aids in revolutionising the financial operations and expanding the company’s growth expectations. There are a few different Bacs solutions that you can choose from. There is the standards Bacs payment software, and then the BACS Bureau solution for businesses who are dealing with Bureau clients. Both work in a similar way and have the same advantages. Below is a list of further advantages businesses are enjoying with when using BACS.
The foremost concern of any business is to find a safe and secure solution to protect their financial resources in order to carry out and process their payments successfully. BACS is an extremely secure platform with their IP system protected by a TLS encryption, which is constantly self-monitored to validate data and user authorisation. You can link payments from your ERP with alerts and bank validation that will notify you if something seems unusual. Businesses are assured that their payments will be processed in a timely manner with utmost care.
2. Free of Unnecessary Charges
Businesses can save money on banking charges such as standard cash payments or cheque-based transactions that have unnecessary additional charges associated with it. Using BACS software, banking charges can be reduced by almost 80%. This way they can channel their financial resources into more significant expenditures to benefit the business in the future because every little expense and fee matters. There is only a single annual subscription fee giving the freedom to increase payment volumes without influencing the cost.
3. Saves Valuable Time
Processing payments in bulk is time-consuming and tedious. Using traditional bank transfers, there is a danger of facing delays due to unforeseen circumstances. An electronic fund transfer ensures a rapid, reliable method eliminating delays so that payments are received and processed quickly. Valuable administrative is also saved where employees can focus on other essential responsibilities of the business that can drive revenues.
4. Improved Workflow
Using BACS software gives businesses the control to keep a check on their workflow by setting approval rules. Emails and SMS alerts will keep a business updated, making the management of operating expenses as smooth as possible. Automated payments and having all the information at the tip of your fingers, accessible anywhere and anytime, makes work management easy. Planning and reporting option makes the control of cash flow stress-free. Moreover, there is an option to schedule multiple payments and change banks, giving you full control over the payment process.
5. Less Paperwork
One major advantage of using BACS software is that carbon footprints are drastically reduced minimising the environmental impact. The elimination of paper-based work reduces waste, ensuring that the financial transactions are carried out in an eco-friendly environment. Without the use of paper vouchers and cheques, cost-effective payments can be made saving up money of postage, delivery, and paperwork. Insurance premiums, subscriptions, salaries, wages and interest can be easily paid online using BACS direct facility.
There are numerous advantages of incorporating BACS payment software/BACS bureau software in your day-to-day business practices. It can make transactions efficient, safe, and valuable so that your business can flourish with less financial headaches. With the right BACS solution, businesses can delegate responsibilities while preserving security, control, and confidentiality.