Money
Issue No. 50 - December/ /
Smart bank systems save
by Jacqui Colwell and Jacqui Colwell
Smart bank systems saveRunning a cost-effective and efficient business starts with paying close attention to your banking practices.
Many businesses overlook the benefits of smart business banking. Even small changes to your banking can save a business thousands of dollars each year, improve cashflow and free up time for more important tasks.
Efficient business banking means fast, no-fuss access to a full range of financial services.
Save money with online banking
Paying by cheque can cost as much as $6 to $10 once administrative time, stationery expenses and postage are factored in. The cost of processing the same transaction online can be as little as 50 cents.
Reconciling accounts manually can be time consuming. You can integrate online banking with your accounting software to streamline reconciliation, saving your business time and money.
Reduce purchase costs with credit cards
Transactions can be costly to process if paper-based purchase orders are used.
Industry reporting suggests some businesses can save $75 to $100 per transaction by using a corporate credit card and reconciling purchases with expense management software.
While corporate credit cards are often used for corporate entertainment and travel, businesses that broaden their use of this payment method to include their procurement process will make significant savings.
Limits can be set for maximum purchase amounts.
Rather than taking the time to raise a purchase order when the invoice arrives, a corporate credit card enables you to pay your bills more efficiently.
Credit cards can also help with cashflow, letting you pay bills without the funds being debited from your bank account until your monthly card payment is due.
Make your money work for you
If you have funds that are not needed immediately as working capital, use them wisely.
For example, if your business has been paid by credi...
