Startups Guide to Digital Payments

Startups Guide to Digital Payments

Sometimes, the most efficient thing you can do when it comes to making a payment as a startup business is to simply take your wallet out, isn’t it? Making a cash payment or tearing off a check from your business wallet still has a place in 2017, particularly if you happen to be face to face with a supplier who needs paying. However, there will be many occasions where it’s simply more efficient to make payments digitally – especially as your startup grows.

Of course, you’ll have plenty of concerns when it comes to making digital payments; fraud, cyber crime, hacking, lost data, mistakes, invoicing issues and other similar issues arise if you don’t know how to manage digital payments as a startup business. But, it’s relatively straightforward if you know how to navigate these issues.

Make it easy for your customers to pay you

Whatever business you’re running, you’ll want to make it easy for your customers to pay you. For some startups, that simply means letting your clients know which bank account to pay into, and by what date.

However, for others (such as those running e-commerce businesses), you’ll need apps, plugins or special features on your website to ensure customers can quickly give you their card details. That’s where a digital wallet comes in – it’s a piece of software that holds buyers’ payment details and other key pieces of information, simplifying the purchase process. You’ll have heard of digital wallets and ‘payment processors’ already, even if just by another name – PayPal is one one of the world’s most popular and recognizable, for example. Invest in this kind of software for your startup if you want to make it easy for customers to pay you.

Find a payment solution that suits you

Next, you’ll need to find a payment solution that fulfills the needs you have as the party making the payments. For example, have you thought about how you’re going to pay your employees? Often, the best way for a startup to pay employees is to use the highest quality HR software you can find, provided it comes with integrated payroll functions. This will make the process of deducting taxes straightforward, as well as other HR-related concerns about payroll.

However, you may need different software to manage payments to your vendors. Startups are advised to use a cloud-based vendor payment management system. Many of these are suitable for use globally, which may be an important requirement for your startup if you’re sourcing your materials or products from overseas. When it comes to paying your overheads (such as your office rent, warehouse rent, equipment hire, vehicle leases or insurance costs), using a piece of software that integrates with your bookkeeping and expense tracking systems (such as QuickBooks) is a good idea, too.

As a startup business, you may feel that the additional costs of these pieces of software is something you can’t yet justify. However, getting your finances right, managing your cash flow and ensuring your vendors and expenses are paid on time is paramount if you’re going to go from a small startup to a fully fledged enterprise. So, invest in making digital payments straightforward as soon as you’re able to and you’ll feel the benefit in the short, medium and long term.