Use ACH Payments To Manage Your Funds

What type of accounting method are you currently using? Managing your company's funds is vital to its business health. One of the commonly used ways to accept payment is known as ACH. ACH is short for Automated Clearing House. ACH is a computer method that allows you to accept payments electronically, transferring money instantly so you do not need to deal with bounced checks and other issues. It is one of the fastest ways to accept customer payments and also to make deposits into your account.

Companies that use ACH payments often find that they are able to expand their services to customers as you can deal with online transactions and other things. From a customer's perspective, it makes things a lot easier and more convenient. From a business perspective, ACH is a great method as you are able to have the ability to send money directly to your clients and you can set up direct deposit for your staff.

Accounting wise, ACH is a great tool. It is clear and easy to read. You can schedule deposits and transactions, which will help you to avoid any late payments to your suppliers and creditors. You also have the luxury of electronic deposits, which means you no longer need to drive to the bank to deposit money into your business accounts.

Typically with ACH your repeat customers will be the ones that really want to jump on board. They can input their banking information and have the funds automatically transferred from the account each month, preventing them from late fees and other issues.

To set up ACH withdrawals you will need to work with a good company and then you will have each customer go through an authorization form. This allows you to pull the money from their account. The forms need to have an electronic signature or your customers will need to print out the information, sign and date them, and then mail them back into the organization.

For you to be able to move the money you will need to have each customer create a unique account for themselves with a secure password. They can then input the billing information into your system and will agree to the ACH withdrawals. You need to make sure your website is properly secured to prevent customer information from being compromised. Each month you will create a bill and send it to the customer's account. Depending upon how they are enrolled in your services they can choose to have the money automatically deducted each month or they may choose to go in and manually schedule the payments each month.

If you are concerned about working with a large company, you may test out ACH by using PayPal. Their services are free and it allows your customers to send money to you over a secure connection. It is easy for you to send money to your vendors and even to your employees as well.Another great thing with PayPal is that they will transfer money on the weekends when other banks are closed.

So how does ACH really differ from credit card transactions? What you are doing is actually having real-time authorization of the funds. The money is moved immediately and your clients will have access to it right away so they can use it however they need.

If you want a secure way to send and receive money, ACH is the way to go. Your customers will greatly appreciate it but your vendors and even your employees will be able to appreciate how easy it is to use ACH.