Integrated payment processing software enables businesses to accept payments from customers directly by using the existing accounting software or ERP they currently use for their accounting tasks. Earlier, without the system in place, businesses had to accept payments using another third-party platform. This could be in the form of a physical device or a virtual online terminal that accepts payments. The businesses then had to later reconcile the payment manually with their accounting software to ensure the invoice was showing the correct payment value. This was time-consuming and tedious. Integrated payment processing eliminated all this.
Here are some reasons why integrating payment processing with invoicing is recommended for businesses.
Reduce late and failed payments
Integrating payment processing with your invoicing helps with late and failed payments because of the instantaneous process that occurs. When you have two separate processes that must be reconciled separately, several problems can arise, and it results in payments that did not go through and payments made quite late by the customers.
With an integrated payment processing system in place, this problem is eliminated because you have a clear picture of the payments. When you are aware of the issues, you can resolve them much more quicker, thereby reducing the chance of losing customers to your competition. Similarly, following up with your customers becomes much easier with an integrated payment processing system. This helps you receive payment and thereby improves your business’s cash flow as you get paid faster. It also helps with business finance management.
Better customer experience
Customers care about the overall experience they get. This is especially true when it comes to payment. If you are a business that cares about its customers, you need to come on board with integrated payment processing. You can expect a faster checkout and, thereby, shorter queues at your business if you operate a brick-and-mortar store. It will cut down the time required to complete a sale leading to higher customer satisfaction.
Imagine if the cashier had to perform the checkout process without the integration in place. He would have to manually enter the payment into the POS system, which would mean longer lines and frustrated customers. With the integrated system, automation syncing takes place between your ERP and the payment processing unit, thereby allowing all processes to be speedy. Sales happen instantly with minimal human intervention, and they are posted to your accounting software, thereby saving the cashier time and effort too. A happier customer is more likely to turn into a loyal customer and will attract other customers to purchase from your store.
Prevent fraud and better risk management
When you are dealing with payments, you want to prevent fraud at all costs to ensure the entire process is being done securely without security-related issues. If any problem does occur, your customers will lose faith in your business, and it means lost business for you. When you use integrated payment processing with your invoicing system, you can expect enhanced security. Integrated payment systems are PCI-DSS compliant to ensure all customer payment information is safe and secure. If you have an ERP such as TallyPrime that has robust security in place, you know that all information is safe.
What if you are not using a secure ERP? In such cases, it becomes even more vital that you shift to integrated payment processors because your customer payment data is at high risk. When you use an integrated payment system, the customer payment is encrypted and transferred safely, thereby making it impossible for fraudsters to get a hold of sensitive data.
Easier and faster account reconciliation
Reconciliation is the process of matching two data sets to see if any deviations occur. Integrated payment processing with your e-invoice enables automation and seamless workflow between the two. This allows the process of account reconciliation to be simple and fast compared to working without such a system. You no longer have to separately reconcile the payment made by the customer with your accounting software. The process occurs automatically. If this process were unavailable, then you would have to balance your general ledger separately from your invoices. This simplicity makes it easier for reconciliation.
Without an integrated payment processing system in place, your accounting team would be spending hours daily reconciling several accounts. But when the ERP software and the payment processor are integrated, this requirement is eliminated. As soon as the payment enters your ERP system, it automatically recognizes the payment. It then instantly matches it with the invoices which are currently pending according to your system. This automation enables your finance team to focus on other tasks that require their attention rather than spend time reconciling accounts. This is one of the biggest benefits of the system.
The Bottomline
Do you need to integrate payment processing with your invoicing? The short answer is yes because of the innumerable benefits it provides you and your customers. If you care about your business, its efficiency, your resources, and your customers, you need to integrate the two processes for a seamless flow between your ERP and the payment processing. Your employees will exhibit higher productivity, the system will promote efficiency, your customers will be happier, your business data will be highly secure, and your business will thrive as a result of the integration.
