Getting payment in cash is always good, however, taking online payments should be your preferred method of payment for your clients.
Here are a few questions to consider when deciding how your business will receive payment:
- Is your office or home within 25 miles (or 25 minutes) from your client?
- Do you want to take the time to travel to pick up a check from your client?
- Do you have a dedicated work mailing address?
- Do you want to have the flexibility of traveling with your business?
- Do you have an accounts payable system in place?
- Do you have a business account set up at a bank?
Your business must be equipped to handle multiple payment options.
- Cash is great for taking payments, however, the transaction must always occur in person
- Checks can be mailed or taken electronically (if you have a your client’s routing and account number number and their permission for the transaction)
- Electronic Debit/Credit works well in person, over the internet on your website or through a link sent directly to your client
Here are 5 reasons you should consider online payments
- People are not carrying as much cash. Studies show that “forty percent of consumers hold less than $20 in cash at a given time” (Source: BankRate)
- Increase your reach. Taking payments online expands your business beyond where you live or operate your business. If someone from another state or even country wants your services and products, why not make it easier for them to pay you.
- Adds credibility to your business. Nearly all major business players are accepting payments online. With the recent sale of Whole Foods to Amazon, the retail online ecommerce game is definitely changing. Who would have thought just a few years ago that we could buy groceries online?
- Save time and make bookkeeping simpler. With just click of a button, you can send an invoice through the many online accounting solutions such as Freshbooks or Paypal. This is a time saver and your accountant will love you for it. With all payments recorded digitally and balance sheets updated, all you need to do is print a report.
- Improve cash flow. You receive your money quicker with online payments.
Things to consider before accepting online payments.
- How much money do you receive in a month of payments
- Who will integrate your payment option on your website
- How you will let your clients know.
Options to add online payments to your website
- Add a Paypal button on your website. Paypal lets users create custom buttons (with code) on the Paypal website that a user can embed onto most website platform.
- Add a store such as Woocommerce to sell products and services. This is for WordPress self-hosted websites.
Taking payments online on your website can help increase sales, save you time, make bookkeeping simpler, improve cash flow and add credibility to your business.
* Please note this post contains affiliate links. Image credit is Shuttershock)