A look at the various payment solutions and services businesses can adopt to automate and digitize their payments and receipts, along with the various operational cost savings that can be achieved through such adoptions.
By integrating payment methods with mobile and web applications, payment service providers have helped companies bring down operational costs. Automated payment solutions have drastically brought down costs related to payment requests, settlements, reconciliations, etc. mainly.
Some of the payment solutions that are bringing down operational costs in your outgoing and income statement format through the power of automation include:
- All Platform Payment Solutions: You can accept online payments on your website and app using a payment gateway. The mobile payment experience can be further enhanced with mobile app ADKs, while web checkout does the same for website payments. PayU offers these solutions, along with international payments in foreign currencies. You can even collect recurring payments for subscription revenue, and also disburse refunds quickly and create offers for your customers using PayU. These automation steps can help you achieve cost control for the business.
- No Code Payment Solutions: Even small businesses without an app or website can use PayU payment solutions to make payment processing easy for themselves. You can reduce job costing expenses and collect money directly to your bank account by sharing a payment link with your customer or adding a payment button to your blog.
- Omnichannel Solutions: These payment solutions include QR code-based payments where payments can be made by doing a simple scan. Point of sales payments can also be digitized for all in-store payments by customers as well as customer doorstep payments.
- Disbursal Solutions: Your cash outflow can be streamlined by integrating a payment solution service like PayU. You can use its services to automate payments to vendors and customers, thus lowering the process costing for payments. You can also automate split settlements for vendors and aggregators.
- Settlement Automation: By using priority settlements, you can make your cash flow position more aligned to real-time. Cost analysis and accounting can get automated, facilitating auto-reconciliation of payments. You can also avail of advances against settlements which can be of great use in case of overstretched business monthly expenses.
These payment solutions highlight a few distinct cost control advantages businesses can derive. From a cost and management accounting perspective, these solutions help you achieve the cost optimization your business needs.
- Direct Cost: Paper-based payment methods are the most common yet expensive form. From office expenses like the chequebook to the bank charges and the cost of resources engaged in it, the operating expenses per transaction far exceeds an automated payment transaction.
- Time: The processing and settlement delays make manual payment methods time-consuming, not to mention the resultant late fee that affects the profit and loss statement. With automated payment solutions, daily cash transactions and recurring payments get automated, saving money from a cost accounting standpoint. Employees involved in these processes can move on to more strategic roles and move the business ahead.
- Fraud Prevention: As manual intervention reduces, the scope of malpractice gets eliminated with the automation of payment methods. Every step of the transaction gets documented, and these payment solutions adhere to compliances, eliminating the risk of non-compliance.
- Scalability: Automated payment solutions can handle the different volumes of business. As businesses grow, so does their volume of transactions. In a manual environment, this would increase the variable costs and affect the profits and losses in terms of time and resource requirements. Automation ensures that your processes expand with only marginal cost increment and net profit impact.
As businesses grow and their gross profit increases, practices like payment automation can keep the income statement profitable, with substantial cost savings. Adopt your preferred payment solutions today and achieve your cost-saving targets.
Cost accounting standards and practices help reduce costs but not in every industry. Adoptions like automated payment solutions help reduce employee requirements and processing time while reducing reliance on traditional cost accounting practices.
Yes, in PayU, you can integrate GST details into the dashboard, and it considers the same automatically in all relevant transactions.