Forgetting to Cash a Check Costs Your Business
Recent studies show that business owners who forget to cash checks are costing their business more money than you would think. Almost $740 million is lost by small and medium-sized businesses in the U.K. every year because of the business either losing or forgetting to cash their paper checks. 38% of SMEs that were surveyed have only forgotten to deposit a check once, but 20% of the SMEs surveyed said they do that once a week. That money all adds up.
There is some good news for business owners though. Many are opting out of using paper checks because of a faster and more economical way of servicing clients. Electronic checks are the new way of handling transactions. Collecting payments electronically saves money. You don’t have to pay for printing checks. Business owners do not have the concern of having to store and cash checks. If a check is lost, the business owner has to deal with the embarrassment of contacting a client and asking for a new payment, and many clients may not be able to be located. Some clients have a problem with stopping a payment on a check. Paper checks can even be stolen.
Electronic payments are easier because no one has to put themselves in harm’s way by carrying around large sums of money. Electronic checks solve many issues that business owners may be faced with. Studies show that electronic checks can help companies transition to using electronic payments by using a mobile app to collect money. Using electronic checks and receiving electronic payments helps business owners keep a track of payments much better than having pieces of paper floating around and in turn helps them save money.