Is not spending on your basic business needs holding you back?
I hear business owners say all the time, “I don’t want to pay those PayPal fees” — PayPal or Square or whichever payment processors they’ve considered and rejected. These business owners want clients to pay them with paper checks. But this is 2021 and receiving payment only by check is ineffective.
When you make it difficult for clients to pay you, it costs you money. A lot of clients can’t pay by check. Some of them can pay by ACH, but you still need a payment processor for that. Even if the client agrees to pay by check, the result is often that you or your assistant has to spend a lot of time following up with your clients to collect the money, and then you’ll find yourself struggling to make your collections workflow more consistent and effective. What if you could just… not do that?
With a payment processor, you can avoid all that collections work! You’ll receive more prompt payments via ACH and credit card. You’ll know what to expect regarding the cost and speed of your payment processor service. (You can still encourage clients to pay with checks by offering them a discount for doing so!)
Here’s why you need a payment processor:
Payment processing is one of the basic costs of doing business.
Without a payment processor, you don’t know how much time and money you’ll end up using to chase late payments. The collections process costs a variable amount of money, depending on how many times you have to follow up with the client! How do you budget for that? Will you end up firing clients more often because you chose to make it hard for them to pay you?
When you have a payment processor, you can add a budget line item for that cost. It’s a more predictable amount, so it helps keep your total overhead within budget.
This is really about a mindset block. “I don’t want to pay to get paid,” you might say. I feel the same way sometimes! However, I’ve found that when I let my frugal impulses get in the driver’s seat, I’m putting a limit on how much my business can earn.
Resisting getting a payment processor is part of resisting having a business. It’s part of resisting the financial tracking and budgeting which helps you figure out the best business strategies, and it’s part of resisting the inflow of money. You have to let a little flow out so that more money can flow in.
We all have to face the reality that our businesses require certain expenses in order to function. Which expenses are the most important for your business? That depends on what type of business you have. But we all need to receive money from our clients.
So let people pay you. Let that money flow in!
When you accept automatic transactions and credit card payments, money will come in from your clients more promptly, keeping your business more liquid. Your costs will be more predictable. You’ll have more clarity about your current position and more flexibility with your business strategy.
Getting present with money and getting efficient and informed about your business’s money lets you focus on the things that really need to get done — your marketing, your new client outreach, and your exciting plans to provide new goods and services.
We recommend QuickBooks Online Payments as your payment processor because it integrates with QuickBooks Online. You send out your invoices and your client can just click to pay. If you are unsure how to get set up, we can help you update your accounts receivable process. Contact Bliss Your Money today!