What Are The Benefits Of Electronic Funds Transfers For Business

Electronic Funds Transfer (EFT) is one of the most beneficial cash management tools available to businesses

. As the name implies, electronic funds transfer refer to computer-based systems used to perform financial transactions electronically. Gone are the days of cheques and even wire transfers with this efficient method of transferring money.

Electronic funds transfer is especially beneficial to businesses because it is accurate, fast and economical. Some of the advantages include:

Direct Deposit - Funds are transferred directly to bank accounts, eliminating the administrative costs associated with preparing cheques.

Direct Debits/Credits - EFT makes it possible to control when money is debited and credited from accounts. Future-dating payments will avoid late and missed payment amounts and can improve credit score.

Tax Payments - Pay taxes online as you would other bills.

In general, electronic funds transfer for business is advantageous for the following reasons:

Electronic funds transfer helps you gain better control of cash flows. Scheduling recurring payments increases accuracy and relieves worry that often accompanies bill payments. Plan and line up payments so that you dont have to personally keep track of paying bills on time.

Electronic funds transfer increases convenience. Transferring money to customers and suppliers on time is convenient with EFT. All parties can avoid spending time and money on preparing and sending documents. Transferring money through EFT is a safe and secure method of privately transferring funds between participants.

Electronic funds transfer reduces your carbon footprint. Each cheque produces 49.28g of CO2, over sixty times more than electronically depositing a cheque. Transferring funds electronically eliminates administrative postage costs including envelopes, paper, printing and labour costs.

Electronic funds transfer saves time and money. Electronically transferring money eliminates time delays that can be in incurred if mail is late or lost. Electronic transfer funds immediately transfer money with a few clicks of a mouse. Payment amounts can be scheduled so you spend less time processing paper money transfers and more time with the operations of the business. Reduce bank fees by streamlining transferring processes.

Electronic funds transfer increase traceability. Electronic funds transfers are easily traceable and secure, since advanced encryption technology eliminates misplaced documents and cheques.

Electronic funds transfer keeps things simple. EFT is user-friendly and makes bookkeeping simple and manageable. Its easier to manage several accounts and transfer funds quickly if then need arises.

Electronic funds transfer reduces fraud. With added security and accuracy, EFT direct deposit eliminates forged, lost or misdirected cheques. Increased precision means cash forecasting is improved.

Electronic funds transfer is beneficial for any business, large or small. Electronic funds transfer saves you time and money by increasing efficiency and streamlining payment processes. From direct deposits to recurring payments, electronic funds transfer will simplify the money transferring process. Transferring money to suppliers, customers and investors is easier with electronic payments. Electronic funds transfer is a convenient, efficient and fast way to transfer money between parties. Businesses can reduce banking fees and postage costs by switching to electronic fund transfers and enjoy saving time and money.

by:Badu Kalanga

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