When comes to running your business, it’s important that you always prioritise paying your workforce accurately and on time. Using BACs for payroll can help you achieve this!
And, choosing the right payment method for your business needs is incredibly important. After all, your payroll should run seamlessly. One of the quickest and most reliable ways to make business payments is via BACs.
Thousands of businesses already using BACs for payroll due to the many benefits that come hand-in-hand with this payment method. When your business uses BACs for payroll, you save time, and administration costs, and improve your cash flow management.
We’ve created a helpful guide outlining the benefits of using BACs for payroll.
But first and foremost, what does BACs stand for?
Bacs stands for Bankers’ Automated Clearing System and is widely considered as being one of the most reliable and easy payment methods used by businesses operating throughout the UK. So much so that in 2020, research revealed that, 345 million payroll related payments were made via BACs!
Read more about what BACs payments are here.
What is BACs?
Eight out of ten employees are currently paid using BACs payments but what actually is BACs?
BACs is an electronic system that makes payments directly from one bank to another, similar to direct debits and direct credits. By using BACs to pay employees, employers ensure their workers are always paid on time and the correct amount. This service is suitable for both large and small organisations who wish to directly transfer funds into accounts.
Many employers use BACs to pay salaries, benefits, and dividends, as well as to make supplier payments.
What are the benefits of using BACs for payroll?
One of the main benefits of using BACs for payroll is its adaptability and ability to meet the payroll demands that come hand-in-hand with the biggest and busiest businesses. But that’s not all… the vast majority of UK payroll and accounting software supports Bacs files and streamlines the process further.
Other benefits include…
Save time and administration costs
Many businesses simply do not have the time to prepare, check and collate their payroll, which is why they choose BACs for payroll. BACs payments are created and authorised with minimal hassle and cost to your business.
When you use BACs payments, you are no longer required to send cheques which eliminates postage costs and stationary equipment costs.
Optimise cash flow management
Cash is king in any business and BACs for payroll will allow you to optimise your cash flow processes as you will always know exactly where you stand. This is because all payments are scheduled to leave your bank on your terms, without delay.
Seeing your money enter and leave your account in real time helps you and your business to have a clear and accurate understanding of your financial position and when you are able to make payments to suppliers.
Cut down on reconciliations
Another advantage of using BACs for payroll is it generates just a single debit from your account on a specified date, meaning you don’t have to worry about enduring the time-consuming task of tracking individual payments.
Improve payment terms
Finally, if you choose to use BACs for payroll, you also have the option to negotiate more favourable payment terms by optimising efficiency.
So, if you’re looking to optimise your payroll solutions this is certainly a good option!
Why choose Easypaye?
Here at Easypaye, our team of skilled and experienced Payroll experts are ready and waiting to answer any of your questions about all of your payroll needs. To find out more, or to discuss our services, please get in touch.
We provide our payroll services across Belfast, Birmingham, Bradford, Bristol, Cardiff, Coventry, Edinburgh, Glasgow, Leeds, Leicester, Liverpool, London, Manchester, Nottingham and Sheffield.
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