Cutting the Cost of Doing Business

Small business will always be the backbone of the American economy, but some small business owners may feel left out when it comes to technology. It may seem that each new technological advance really only benefits big companies.

But a growing number of technology-based service providers are realizing the value of doing business with smaller companies, says Eric Remer, CEO of PaySimple, an online provider of accounts receivable services. "It's important for a small business owner to maximize the benefit he or she derives from a new technology," Remer says. "Working with a company that understands the special issues faced by small business owners can make all the difference in return on investment."

Before considering a new technology, first evaluate the aspects of your business that consume the most time and resources - and have the biggest impact on your bottom line, Remer advises. "For many small companies, the cost of managing accounts receivable on a monthly basis takes a significant bite out of profits."

Many small businesses are turning to online solutions, like PaySimple, to reduce accounts receivable costs. While generating and collecting on a paper bill can consume a significant number of staff hours, online billing and collection can often be accomplished in mere minutes, says Remer.  "It also makes life considerably easier for clients" he added, "as they will no longer have the hassle of writing and mailing checks."

Online billing and collection can simplify the management of recurring billing, allow for direct debit from customers' bank accounts, process credit cards for substantially less cost than incurred when dealing directly with credit card companies, even deposit a paper check electronically. PaySimple  provides these services in a platform that integrates with most business management software, including QuickBooks, one of the most popular programs used by small business owners.

"Auto-recurring billing in particular can save a small business owner up to 90 percent on invoicing costs," says Remer. "It's an ideal solution for anyone who bills a customer the same amount every month. Not only does the system normalize cash flow and eliminate collection costs for the business owner, it creates good will with the client who knows he or she need never again face late fees or collection calls."

The PaySimple auto-recurring system enables a business owner to collect from a checking account or credit card, set the invoice and collection dates, notify customers via e-mail that the payment has been collected and automatically deposit the funds into the company's account. The system also eliminates duplicate data entry - a huge time consumer for any small business.

"Credit card processing is another costly, but essential process that small business owners must face," saysRemer. "Unfortunately, most merchant processors create rate schedules that are so complicated it's virtually impossible to track exactly what you are paying per transaction."

Working with a service provider like PaySimple can demystify the process because they fully disclose all costs and structure merchant accounts so that PaySimple customers always pay the lowest possible transaction fees.  In addition, for ACH (check or direct-debit payments from bank accounts) PaySimple changes a low flat fee per transaction, unlike many other companies that charge a percentage of the transaction amount. Further, PaySimple allows business owners to combine credit, check and direct-debit reporting under one system - something most merchant providers can't do.

To learn more about accounts receivable services that can impact your bottom line, visit www.PaySimple.com.

Copyright © 2006, ARA Content