Save Time and Money Using Direct Deposit

When you hear “direct deposit” you might not immediately think of saved time and money. However, that’s exactly what you’ll have if you implement this valuable service. Whether it’s for saved stock of paper checks or saved time with processing as well as processing fees, there are so many ways for you to save time and money by switching over to direct deposit. These ways are relatively simple, and the benefits associated with them are huge. There’s no reason at all why you shouldn’t switch on over to direct deposit today, as a matter of fact. The benefits will be considerable and immediate, and there will be next to no drawbacks. The choice is yours, but the choice is obvious.

In this post, we’re going to give you some ways that you’ll be saving both money and time by switching over to direct deposit for your business.

Check stock.

Since direct deposit requires no checks to be written, your company doesn’t have to print as many checks. Fewer checks mean less money spent overall. Since checks can be as much as 30 to 50 cents each, this can be a considerable savings when it all adds up. On top of that, you won’t have to store as many checks, so you won’t have to worry about that problem either.

Check printing hardware.

Since you’ll rarely be using your check printing hardware, you’ll find that you don’t need to repair the equipment nearly quite as often as you did before. You’ll also most likely find that you don’t even need certain pieces of equipment anymore and can do away with them altogether.

Security and facility space.

Many companies use some sort of vault to secure their checks as well as their check printing hardware. Since your company won’t need this security and facility space anymore, these vaults can be used for other things that would more readily require a vault or some other similar kind of security space.

Reissuing lost or stolen checks.

When you’re administering checks, how often do you need to reissue lost or stolen checks? Very often, you’re probably saying to yourself. That problem completely goes away when you’re using direct deposit, which will save you plenty of time as well as money overall. There’s no telling how many headaches you’ll be avoiding by simply switching over to direct deposit and not having to deal with reissuing lost or stolen checks.

Bank charges.

Because checks are so expensive to process, processing fees can be reduced by as much as 75 percent by switching over to direct deposit. Check fraud represents such a large amount of money in losses each year, and check processing requires a dedicated team to watch over the whole process. Costs are so much lower for direct deposit, so banks are apt to charge lower fees for setups that involve direct deposit.

Errors.

There are many hands that have to touch a check before it gets processed. Each hand that it gets passed to presents the opportunity for errors to crop up in the natural sequence of things. Direct deposit requires less handling than checks do, so the amount of errors involved is significantly reduced. This means you can focus more on benefits for your clients and less on having to deal with errors and how you’re going to fix them.

Account reconciliation.

Direct deposits are cleared on the date you choose and reconciled on the other date you choose as well, which reduces the complexity of the process. Instead of having to process multiple checks, you only have to process one and are covered in the long run. In this way, you clear yourself of any problems that may arise during the process of account reconciliation. You avoid any of the pesky delays or errors in processing that can always crop up as a regular part of the process.

Cash flow management.

Your cash managers have complete control over cash flow management in this scenario. They know just when they need to have funds available as well as when the funds are used. Cash flow management is one of the most important aspects of running a small business. It’s just as important as being able to save time and money when it comes to direct deposit measures, so it becomes very important as you can imagine.

Fraud.

Many companies report forged signatures on checks, doctored amounts, fake boilerplates, fake checks altogether, and a variety of other methods of fraud. As a result, companies lose millions if not billions of dollars. The great thing about direct deposit is that it eliminates the possibility of fraud altogether. The money is simply transferred into the account without a middleman who could potentially alter the checks that are made out.

Payroll administration costs.

Direct deposit virtually eliminates the need for employees to engage in many of the original check processing processes, clearing up space for them to do other, more meaningful tasks. In this way, you’ll appreciate the saved time and money, and your employees will appreciate the time now spent on things that matter.

Increased productivity.

Direct deposit eliminates the need for employees to deposit their checks, something that they tend to do while on the clock. It’s by saving this time that employees can then use it on more meaningful tasks while eliminating wasted time.

When you hear “direct deposit” you might not immediately think of saved time and money. However, that’s exactly what you’ll have if you implement this valuable service. Whether it’s for saved stock of paper checks or saved time with processing as well as processing fees, there are so many ways for you to save time and money by switching over to direct deposit. These ways are relatively simple, and the benefits associated with them are huge. There’s no reason at all why you shouldn’t switch on over to direct deposit today, as a matter of fact. The benefits will be considerable and immediate, and there will be next to no drawbacks. The choice is yours, but the choice is obvious.