How Quickbooks And Next-Day Payments Can Help Small Businesses

One of the most pressing issues that a small business has to face is cash flow. According to quickbooks, 69% of business owners that have been surveyed by The State of Small Business Cash Flow have spent sleepless nights due to their cash flow concerns. Small businesses have to process invoices and wait for funds to be transferred before they will receive money in their account.

Businesses also face the risks of not receiving payment when due. Sometimes, clients will delay payment on invoices for as long as 30 days. The business owners have to seek for another source of money in order to pay employees and continue with the business. It is very likely that the client is also suffering from cash flow. They want to pay the contract as well as their employees but they are also stretched.

Waiting for a month for a client to pay is only the beginning of the business owner’s headaches. According to the study made by QuickBooks, 64% of businesses are regularly challenged by cash flow and nearly a third fails to pay vendors, loans, themselves or their employees. When employees do not get their money on payday, they suffer more.

It is important for businesses to have a solution that will create a cash flow where businesses can get their money as quickly as possible. An example is next-day payments that allow business owners to get their money faster than traditional methods. QuickBooks can process $37billion in payments every year. If next-day ACH payment is added to the arsenal, the business can be a leader in B2B payments.

When business owners use next-day payments, they gain the opportunity to start on new projects faster, pay their employees on time and manage the business more effectively. If a business operates on a payment structure where 50% is paid upfront and 50% is due at the end of the project, the first payment can be used for materials, overhead expenses and labor costs.

The status of outstanding invoices is an important part of a client relationship management. When Zohois integrated with CRM and quickbooks, the business will always see their accounts along with the invoices and whether they are overdue.

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