Bacs software has been around for a long time now, but it still has not been universally accepted by businesses. This is curious when you consider the many advantages of making bacs payments, rather than older and less reliable or secure ways. There is still some suspicion about trusting computers to do your work for you, and people tend to be warier than ever where their money is concerned. The maxim holds that a chain is only as strong as its weakest link, but that weak link is normally down to human error. In practice, bacs is a speedy and reliable way of making payments to suppliers and receiving them from customers. It can save you time and money, and reduce the errors and risk associated with handling cash and paying third parties by other means.
Bacs stands for bankers automated clearing software. Essentially it is an electronic movement of funds from your account to another party’s account. This can take up to three days, but can often be almost instant. (There is another way, SWIFT, which is guaranteed same-day.) Even in the worst case scenario, then, bacs is as fast as paying in a cheque or cash. It has a number of advantages over and above that.
One of these is security. Making online payments means you do not have to have cash on the premises. It also decreases the scope for fraud, since you will no longer be sending out cheques. Consistency is another. The money leaves your account instantly, so you know how much is left, and you are not likely to be caused cash-flow problems by people delaying paying in cheques and then the money leaving your account at a bad time. And, once you have correctly entered a payee’s details once, they can be reused again. Paying the wrong person and having to get back the money shouldn’t be an issue.
Bacs software can be used to schedule payments, and in conjunction with accounting software can be used to take care of payroll issues – automating pay day and saving a massive amount of time and effort, as well as reducing the error inevitable in doing the job manually. bacs payments and receipts can also be combined with auditing software to further reduce error and duplicate payments, resulting in surprising savings for most businesses. In conclusion, there are numerous reasons to use bacs and none to ignore it.
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