Should I Use Direct Deposit for my Business?

July 14, 2017

With over 80% of the U.S. workforce being paid by direct deposit, according to ACH, this payment method deserves some serious consideration for your business. As with all changes, a switch to direct deposit does warrant a moment of weighing the pros and cons. In this article, we will cover some of the main talking points in favor of using direct deposit for your business.

Easier Administration

One main reason to consider using direct deposit for your business is because it is much easier to issue paychecks on the administration side. You don’t have to be in the office, or even in the same country for that matter; the bank issues paychecks on the designated date for you automatically. In essence, all you really need to do is set up your direct deposit schedule and system; and even then you can have a local accounting technology consultant in Mount Dora, FL do this for you!

Fraud Reduction

The risks of fraud are greatly reduced if a business owner makes the decision to use direct deposit. This is mainly because checks won’t ever pass through anyone’s hands; while most people are probably trustworthy, you can avoid the hassle of fraud altogether with an automated process between banks. In addition, there is not physical check so there is no chance of checks being lost or stolen, signatures forged, or the amounts on the checks being altered.

Saves Money

The best reason to start using direct deposit is to save your business money. You no longer have to pay someone to print, fill out, sign, or hand out paychecks. If you’re that person, then you can now save money by saving time. You can then dedicate this time to more important tasks resulting in more profit for your business. In addition, you will also reduce the number of checks you have to purchase as well as any costs associated with replacing lost or stolen checks.

Employee Benefits

Your employees will also benefit from the use of direct deposit because they don’t have to go and deposit their paycheck or wait for their paycheck to clear. In addition, your employees don’t need to worry about losing their check or having anyone take it before they can deposit it. Employees can also occasionally take advantage of banking accounts which offer added benefits or features for the use of direct deposit. Lastly, employees don’t need to be in the office themselves to receive their paycheck if they must be out of office due to illness or scheduled vacation.

For more information on how to set-up a direct deposit system for your business, contact your preferred Mount Dora, FL accounting technology service at Relate CPA. Relate CPA is a business accounting firm with the knowledge and technical skills to help you set-up these advanced direct deposit systems quickly and efficiently. For more information, give Relate CPA a call today at 352-720-0321 or fill out the form on our website.