Overcoming Concerns About Financial Control with ACH Systems
One of the aspects about modern business that is interesting to consider is the idea that while technology has helped to facilitate access to new customer bases and greater expansion, many companies are still concerned about relinquishing full control over payroll and bookkeeping aspects. Some of the common misconceptions regarding more automated administrative actions include:
- There is less security in third party handlers
- Automation can lead to more mistakes
- Some clients do not trust clearinghouse payments and deposits
- Automated payments are more likely to trigger a potential audit
The truth is that these concepts are actually the opposite of what ACH and check processing can provide a business.
Stronger Security And Documentation
An ACH is essentially a nationally backed network that links payors and payees for a simplicity of money transfer. However, as a nationally supported system, it also incorporates a number of failsafe measures that further ensure the verity and accuracy of these transactions. This includes validations from the originating clearing house as well as from the National Reserve. Further since the automated payments are entered electronically, there is also a concise digital trail of information that can catch and ameliorate any possible issues that could arise.
Overall, ACH systems for payroll provide a better security for the company as well as for the clients. This is also because there is an assurance of on-time remittance for funds, and a reduction of the possibility for human error that may arise from too many individuals trying to manage the existing accounts. Along with this factor, the automated communications between the originator and the Federal Reserve also serve as a means of checking accuracy and identifying errors before they may escalate.
Concerns about more frequent audits are greatly unfounded with ACH services, especially since the digital archiving process provides complete and accurate records for both the company and for auditors. Information verification is greatly simplified, and the regulation an operation of the network can also afford greater security and accuracy in this regard.
Clients In Control
Businesses will find that clients can have personal opinions regarding the use of ACH services for payments, but many individuals do discover that as they become more familiar with the convenience of direct deposits and withdrawals they also become more comfortable with the security it provides:
- Automated withdrawals translate to reduced late fees
- On time payment for services rendered
- Electronic archive of transactions
- Ease of keeping track of finances
This means that both businesses and clients can gain better security and control over their budget through ACH services in payment processing.
