Office Alone — 2022 Rotessa Christmas Video
The office is getting busy with the holidays swiftly approaching – the Rotessa team has no time to hang around with Greg! What happens when the team goes home and leaves Greg all alone in the office?
https://vimeo.com/781945985
See you in 2023!
Thank you to all of our amazing Rotessa users. Your partnership means so much to all of us. May you have a restful holiday season and a prosperous new year!
Small business optimized: Compass Accounting CPA
Compass Accounting CPA is a Chartered Professional Accountant firm, based in Winnipeg, that serves other small businesses all throughout Canada.
Karen Hallson-Kundel (CPA, CGA CBV) has held senior finance roles in manufacturing, agri-business, and venture capital. Even though Karen has a physical location for her business, she has been using cloud-based tech since the beginning of her practice. She says that because simple things are now automated, she and her team can focus on helping entrepreneurs achieve their goals.
Compass Accounting serves technology companies, social media influencers, designers, creatives, e-commerce businesses, and professional services.
As a Chartered Business Valuator, Karen is trained to optimize performance and value. The apps and automation Karen uses at Compass Accounting allow small businesses to expand and "redirect that time and budget to doing things that can add real value to their business."
Additionally, by offering a monthly value-based price – a difference from other traditional bookkeeping and accounting firms – she helps small business budget their bookkeeping and consultancy accordingly.
"Usually they come to us when they're growing and things – that they used to do – aren't working anymore."
Automation for small business
Karen and the Compass team strive for 70 to 80% automation in all their small business clients' bookkeeping. Small businesses are driven more by cash flow and automating the majority of the routine tasks empowers her clients to do most of the bookkeeping themselves.
In this way, automation allows Karen and the entrepreneurs to look at the bigger picture of their business and grow.
"Cloud accounting is very hands-on," says Karen. Automation with applications, like Xero and Rotessa, takes all the things that you wouldn't talk about anyway and frees up time to have a conversation about your business performance.
"You can have a conversation about the challenges you are facing and maybe how you can improve the output of your accounting system to get better information, to help you make faster decisions, and better quality decisions. We are talking to our clients all the time!"
Blossom CPA: Building better books for architects
https://vimeo.com/755206500
Accounting for interior designers and architecture firms is Blossom CPA's specialty.
Etel's been a Chartered Professional Accountant for over 10 years, but she and her team have intentionally and exclusively serviced interior designers and architects for three years.
"I think I always wanted to take off on my own," says Etel. She sees herself more as an entrepreneur than an accountant. Blossom CPA is the perfect fit as she flexes both her entrepreneurial and accounting muscles. Originally just a part-time venture, Etel quickly realized how much she loved working for herself.
"It really fulfilled me as a professional and now I can't imagine doing anything else."
Like most modern accounting firms, Blossom CPA works virtually and utilizes cloud-based platforms – like Rotessa– to connect with and service their clients.
Using pre-authorized debits to collect her recurring clients' invoices has been a game changer.
Before Rotessa, "I was letting people do whatever they wanted," Etel jokes. "Incorporating Rotessa into our workflow was so important."
Signing a pre-authorized debit agreement – outlining all the payment details beforehand – is now an integral part of Blossom CPA's onboarding process. Having an agreed-upon withdrawal day and amount, with all of her clients, gives Blossom CPA the ability to focus on their clients' needs and growth.
Additionally, Etel says, "Rotessa helps us secure our cash flow and make us look as professional as we are."
Accounting for interior designers and architects requires a high level of expertise and Blossom CPA builds their services around the most common challenges and growth patterns they see in the creative and building space.
"We’re experts when it comes to the nuances of accounting for interior designers and we collaborate with clients from a foundation of camaraderie and trust," says Etel.
Helping their interior design and architecture clients get comfortable with their own numbers is a joy for Blossom CPA.
Georgette Packaging: the journey to carbon neutral packaging
https://vimeo.com/746921233
Georgette Packaging – based in Kitchener, Ontario – creates beautiful, custom, carbon-neutral packaging with a specific focus on serving small food businesses (like cafes, restaurants and bakeries).
For several years, Georgette has used Rotessa to bill their clients. We met up with the folks at Georgette and interviewed co-owner Jennifer who told us what really makes them unique.
Georgette Packaging commits to a sustainable and environment-friendly business model as all of Georgette's products are carbon neutral! Jennifer explains carbon-neutrality like this:
"We analyze the whole process for making our packaging, figure out how much carbon is being emitted during that process, and we purchase carbon credits to offset that."
High-quality carbon credits provide funding to either reduce global carbon emissions or for planting trees.
Recently, Jennifer notices an increased interest in carbon neutrality in the food industry. Patrons are beginning to ask restaurants, cafes, and bakeries about their commitment to sustainability and eco-consciousness. At the forefront of this environmental trend is Georgette Packaging, servicing these responsible, forward-thinking food companies.
Georgette Packaging was founded in 2013 by Sarah Landstreet. Sarah has an extensive background both in engineering and the food industry. In 2021 Sarah decided to sell Georgette. Hoping to keep the business moving forward with the same values and culture, Sarah sold the company internally, to employees Kris and Jennifer.
Today, Kris and Jennifer run Georgette Packaging together with their growing team. Learn more about Georgette Packaging's journey and how Rotessa has helped in our newest customer film.
6 Major advantages of QuickBooks Online for your business
QuickBooks Online is an industry-leading name when it comes to accounting software for businesses. The program’s interface is simple, user-friendly, and you don’t have to be a professional accountant to navigate all the features it has to offer or complete a QuickBooks setup.
With such a robust and flexible product, it’s no wonder that QuickBooks Online is a top choice for many entrepreneurs and business owners. The software’s innovative advancements have given businesses some major advantages that stretch beyond simply invoicing, pulling up reports, and tracking expenses.
Let’s take a look at what Quickbooks can really do for your business and the true value of a well-managed bookkeeping system.
Saves you time
It’s no secret - running a business takes an incredible amount of time, energy, and effort. Along with managing operations, keeping up with daily tasks, producing goods, providing services, sales, marketing, the list goes on - the last thing business owners need is to work within a complicated accounting software. The good news is, technology has developed tools that can save you time and headaches from keeping up with the financial side of the business.
QuickBooks Online allows you to:
Automate tasks
Tasks such as recurring bills and repetitive invoicing can be automated, which not only saves you time but keeps your bookkeeping system organized.
Batch invoice
Invoicing can be a time-consuming process that can quickly become overwhelming as you take on more clients. QuickBooks Online has a batch invoicing feature that lets you email invoices to multiple clients once, as long as the invoice doesn’t require personalization or different prices.
Set reminders
With email alerts on upcoming bill payments and overdue invoices, you won’t need to worry about going through your expenses and receivables. Having an organized and automated bookkeeping system can save you hours per week.
Streamlines your processes
QuickBooks Online is compatible with over 650 apps, including some of the most popular ones for businesses like Rotessa, TSheets, Dext, and Shopify.
You can browse QuickBooks App Store to see all of the apps that can be integrated with the software.
Linking the apps you use for your business with your QuickBooks program streamlines your operations and simplifies tasks such as invoicing, data entry, and more. App integration increases business productivity, reduces errors, and makes for a much smoother workflow.
Plenty of learning resources
As with any software, QuickBooks Online has a bit of a learning curve in the beginning. Thankfully, there are plenty of resources available for training and getting familiar with the program. If you’re brand new to QuickBooks, learning how to navigate it can feel daunting. An advantage of such a popular program is that there are plenty of training tools and learning resources available, including the official QuickBooks Getting Started Tutorial, YouTube videos, online guides, and books.
However, one of the best ways to learn the software is through 1-on-1 training with a QuickBooks Online training advisor and professional bookkeeper. While generic tutorials and resources can help get you started, there is nothing quite like personalized training that will not only help you learn how to use the features you need but also understand how to accurately record data.
With 1-on-1 training, you have an expert by your side who will explain fundamental accounting principles, help you set up your bookkeeping system properly, give you tips on how to stay organized, and answer any questions you have along the way.
Customizable and flexible dashboard
QuickBooks allows you to tailor the software to meet your needs. Some customization examples include:
- Adding, removing, or modifying the icons displayed on the icon bar.
- Changing the look, data fields, and format for invoices, receipts, and estimates with ready-made templates.
- Filter specific data on reports.
You can also choose from different versions of the program with plans that fit the needs of virtually all businesses and applications, including contractors, start-ups, service-based businesses, product-based businesses with inventory, and an advanced plan that allows room for companies to grow.
Cloud-based software protects your data
QuickBooks Online offers a multitude of benefits as cloud-based software, including the ability to access your account from anywhere in the world. The most important benefit of this technology is that QuickBooks uses secure servers to ensure that your data is safe and secure. Sensitive information is always protected and backed up. Should anything happen, you can recover your data quickly.
QuickBooks Online helps you make better business decisions
Did you know that cash flow problems are the greatest predictor of business failure? In fact, 82% of businesses that failed have reported that cash flow issues were the reason their company closed.
As a business owner, you need to know exactly where your business stands financially, including when and where money is coming in.
Where QuickBooks Online plays a role in managing cash flow is, of course, through reporting and the ability to analyze your cash flow statements. With a click of a button on your mobile device, you have a bird’s eye view of your current financial position which helps you make better business decisions in day-to-day operations.
With that said, business owners won’t know where their financials are without proper reports. Accurate reporting is crucial for preventing cash flow problems. At Accounting By Sal, we help entrepreneurs and business owners build an effective bookkeeping system using modern practices while educating our clients on good accounting practices. The outcome is an improved workflow that produces consistent and accurate results, supporting the longevity of your business.
How Compass Accounting uses Rotessa with Xero
Every month, you deal with the same inconvenience: sending invoices with Xero. If you’re lucky, this can be a relatively painless process. Unfortunately, more often than not, you waste time organizing payments, sending invoices to clients, and following up with reminders. All of that paperwork leads to a loss of productivity.
What if there were a way to automate this process, save yourself the headache, and save on transaction fees?
At Compass Accounting CPA Ltd, we are seeing the difference that using Rotessa with Xero makes. Here’s how it works: Compass Accounting CPA Ltd uses Xero to create and organize invoices. Then, we use Rotessa to collect payments from those invoices. Since integrating the programs, the overall process became faster, easier, and less expensive.
First, Xero connects with Rotessa to gather and compile all of the invoices. Then, Rotessa withdraws the payment directly from the client’s bank account. Using Rotessa, you can schedule transactions to withdraw automatically on the due date of the invoice, including invoices that recur each month. Once the payment is collected, Rotessa reports it as “Paid” in Xero. It’s that simple!
Here’s how combining these programs makes paperwork painless:
The Best of Both Worlds
Bookkeeping and accounting are a lot easier when you combine Rotessa with Xero; it simplifies the process of creating, organizing, and sending invoices. Compass imports invoices and clients from Xero into Rotessa. When those invoices are sent directly to the clients via Xero, the payments are collected from their bank accounts by Rotessa on the invoices’ due date.
A few benefits of integrating Xero with Rotessa include:
A Painless Setup Process
If you manage the books for your business, you might be familiar with that sense of dread when it’s time to send invoices. Organizing these documents can be a hassle. Using Rotessa’s system, clients only need to authorize payments one time. To do so, Compass emails them a link to an authorization form. Once the client authorizes the payment, and provides their banking information, Compass receives a notification and the setup is complete. This simplifies the entire process so that payments are withdrawn automatically from the correct bank account.
Clients prefer this process because they don’t have to think about initiating payments. Once they authorize payments, the payments are withdrawn automatically—they don’t need to worry about setting up reminders or missing due dates.
No Hassle with Recurring Payments
As your business grows, so does the stack of paperwork on your desk. With more clients, you need to spend more time on administrative tasks. On top of that, you have less time to deal with them. It uses up your valuable time to send invoices, collect payments, and notify clients. Not only is it awkward to try to collect these payments, but it wastes time that could be spent more productively. You can save yourself from a lot of stress by automating the billing process.
When you’re running a business, it’s all about working smarter, not harder. Why spend more time and effort on bookkeeping than you need to? By integrating Rotessa and Xero, Compass Accounting CPA Ltd, no longer chases clients for payments.
Save Money on Credit Card Fees
Using Rotessa is a fraction of the cost of credit card processing.
Compass Accounting CPA Ltd, saves thousands every year by using pre-authorized debits.
The more transactions you do each month, the more you’ll save on credit card fees. Since the savings will scale with more transactions, it can create thousands in savings on processing fees. With the money that Compass saves on transaction fees, they can invest more capital into growing their business.
Build Better Relationships with Clients
It’s happened again: one of your clients has forgotten to pay an invoice. By this point, you know the drill – you need to call or email them to send a friendly reminder. Even though it’s nothing personal, you can’t help but feel awkward when you send payment reminder emails.
With Rotessa, you can skip out on conversations about missed payments. Collection happens automatically on the date issued on the invoice. With that out of the way, you can focus on helping clients, not reminding them to pay the last invoice. Rather than sending invoices and chasing missed payments, Compass can spend more time on helping businesses reach their goals and optimize their processes.
Get Invoices Paid on Time, Every Time
The more outstanding invoices you have, the more it hurts your bottom line. It could even hurt your business financially if payments are consistently late. To grow your business and serve your customers better, you need to ensure that payments come in on time. Compass Accounting CPA Ltd no longer waits for invoices to be paid. With Rotessa and Xero, that process is automatic. Don’t let missed payments hold back your business.
Make it Easy to Keep Track of Your Invoices
When it’s time to bill your clients, you might be familiar with questions like:
- Which of my recent invoices were paid?
- Were all the invoices sent to the right clients?
- Did the invoices have the correct information?
By using Rotessa, Compass Accounting CPA Ltd never has to wonder about what’s going on with the books. All of that information is readily available. It’s easy to see everything from outstanding invoices to payment due dates. If there are any issues with invoices, Compass can quickly identify which clients are behind on payments.
If you already use Xero to create invoices, combining it with Rotessa is a simple and streamlined process.
Whether you’re sending one-time transactions or scheduling monthly payments, billing your clients just got a lot easier. Integrating Rotessa with Xero can save your business stress, time, and money. Now that you’ve seen the difference these programs make for Compass Accounting CPA Ltd, you might be wondering: how can they benefit your business?
If you’re interested in learning more about how Rotessa and Xero can help your business, contact us today!
New: Instant bank verification
We have some exciting changes coming to Rotessa online authorizations. These changes will make online authorizations faster, more accurate and provide a better experience for your customers.
Each time you get an authorization, it’s your responsibility to have reasonable means to identify the account holder and get their permission to debit their account. This is a requirement from Payments Canada. We’ve adjusted our online authorization process to align with these rules and make your user experience more efficient.
These changes do not affect offline (paper) authorization forms.
Previously, Rotessa’s electronic authorization forms allowed the customer to manually enter their bank information without being required to verify their identity.
This method revealed two issues:
- There is a potential for fraud if the person filling out the authorization form uses someone else's bank account information
- There is a risk with manual entry that the customer will get the bank information wrong, leading to a decline
Microdeposits are the traditional fix to this problem for many payments solutions, but the main drawback of microdeposits is that they are slow, and require additional action on the part of the customer. Truthfully, we’ve been hesitant to force microdeposits until we could provide a better alternative solution. We are happy to announce that we have found the solution: Instant Bank Verification.
Instant Bank Verification - Get online authorizations in real-time
Now, with Instant Bank Verification, your customers can use their online banking credentials to verify their identity and provide the bank information required for the authorization form. This is especially useful for those customers who don’t have easy access to a void cheque, or are unfamiliar with where to find their banking information.
Instant bank verification is an instant pass/fail verification method that has less friction for you and your customer. This service is provided by a third party, and therefore will have a one-time $2 service charge per successful customer verification.
In the event your customer does not use online banking, they will still have the option to complete their authorization manually and a microdeposit will be sent to them to verify their identity.
Verification only required for the Link Authorization Method
Link authorization forms are open-ended. Without verification, you can put the link on your website and anybody can click the link, enter their name and bank information and set up a pre-authorized debit agreement. Instant Bank Verification ensures that this person is who they say they are.
Rotessa’s Authorization Request Emails do not require microdeposits or instant bank verification. This is because you need to have both the customer name and email to use this feature. That email includes a unique link specifically for that customer that can only be accessed from within that email. This ensures that you have reasonable means to know that the person filling out the authorization is who you think they are.
If you have any questions about the new authorization changes please don’t hesitate to reach out to our support team. Thank you for choosing Rotessa for your payments!
Accountant & Bookkeeping Partner: Horizon CPA
Despite serving a large geographic area, Shane and Blaine of Horizon CPA have an outstanding reputation amongst their diverse clientele. Their "holistic" approach to their clients' finances has played a key role in their organic growth year after year.
Shane Wagstaff, founder of Horizon CPA, says their well-rounded view of a financial plan is what sets this practice apart and gives his clients the best start in their businesses. Shane, operating out of the Red Deer and Trochu locations, works with farmers, ranchers, oilfield contractors, holding companies and other small to mid-sized business clients. The relationships Shane has built and maintained with his hometown clients have helped his young practice grow steadily throughout the years. Words of mouth referrals are their greatest growth vertical and attest to the quality of work and care Horizon CPA provides.
Blaine Gendre joined the practice in early 2019. As an Albertan as well, Blaine came to the practice with experience in the oil, gas, and mining industries. Blaine services the firm's Edmonton client base and works alongside the business owners in that area to grow a well-rounded and successful business.
Horizon's clients, covering hundreds of kilometres of Alberta, are mostly rural, hard-working, and well-established. Shane and Blaine work with them to utilize cloud technology to manage their businesses finances. Since their launch, they have begun working for an increasing number of remote clients.
Therefore, by leveraging technology such as Microsoft Teams to meet with clients they have been able to increase not only the number of clients but also the number of kilometres between them. "70 percent of my clients I work with remotely as they are located over 2 hours away," says Blaine. By adopting this tech, their clients are able to focus more on what they love: their business.
In addition to their paid services, Horizon also offers great resources on their blog for Albertan business owners about budgeting, payroll, incorporation, and more.
As a new member of the Accountant and Bookkeeper Partner Program, Horizon is excited to start introducing Rotessa and Pre-authorized debits to their clients. In addition to their 30% transaction discount that they can share with clients and friends, they will also share their experience and business tips with us!
Simplify your payment process with Rotessa and Hawkins & Co
At Hawkins & Co. when we review software for clients, we look at key criteria to assess them against. Many criteria on the list are client-specific but there are a few that we consider on every software review we do. The top 3 criteria we always focus on are:
- User Interface - is it easy to use? How does it look when you log in? How many clicks does it take to get to what you’re looking for?
- Simplification - does it simplify a client’s process? Does it simplify the client’s interaction with their customers?
- Integrations - what does it integrate with? How does that integration work? Does the integration work consistently?
When we select software to use ourselves, we run through the same type of list. Over 5 years ago, when H & Co. was in its early years, we adopted Rotessa as the main payment option for our clients. We needed a system that was easy for collecting monthly payments from our clients. Even then Rotessa hit the mark. Five years later and Rotessa continues to meet our needs and function well - in tech years that’s a long time!
Now Rotessa’s even better - let’s rate Rotessa on our top 3 criteria then and now:
| Key Aspect | 5 years ago | Today |
| User Interface | 5 years ago
|
Today It’s been refreshed but still carries through the same consistent easy to use interface |
| Simplification | 5 years ago
|
Today Again it’s been refreshed and has allowed us to utilize a standard PAD request to our clients which makes it even simpler to roll out. Just one link and done! Matching has now been made even easier with a new Xero integration! |
| Integrations |
|
Today Now Rotessa integrates with Xero and we can set up our payments to automatically connect with Xero and match our clients invoicing. Making reconciliation a breeze! |
For Hawkins & Co., Rotessa has been a great solution that provides us with consistency and top-notch customer service. Our H & Co. payment process works well for our client payments but each business has different things to take into consideration.
So we wanted to invite Lissi Moffit, Communications Coordinator from Rotessa, to share other ways Rotessa can benefit your business:
At Rotessa, we are big fans of simple. We like to keep payments simple, reliable, and affordable.
Here’s an example of how most businesses get paid; As work gets done, or once the month is over, they send an invoice to their customers and wait for them to initiate a credit card payment or send in a cheque. The problem with this traditional payment process is:
You have no control over when you get paid. “Cash is king,” and everybody knows it. When you don’t have automatic payments set up, you are at the mercy of your customer and are probably waiting on them to pay you. Additionally, the true cost of credit cards is not small-business friendly. I understand that you want to give your customers every opportunity to pay you, but how much does this actually cost you? Most online credit card processors charge 2.9% on every payment.
If you invoice your client for $500 every month, that’s nearly $180 in fees a year for just one customer. Paying a flat rate per transaction, with automatic payments, gives you much better value and could literally save you hundreds (if not thousands) of dollars each month.
With Rotessa, you can integrate your payments with your account software and automatically schedule those bank payments with our feature Auto Sync. QuickBooks Online or Xero users who want to automate their workflow, simplify receivables, and get paid on time need Rotessa and Auto Sync.
We also give you the tools to manage multiple accounts all with one login. This feature is great for property managers, franchisees, daycare groups, bookkeepers, and anyone who is working with different accounts and businesses all in Rotessa.
Having the ability to collect payments easily, on a timely schedule, and with all the convenience of traditional digital payments, Rotessa and PADs help simplify your small business' payment process.
What are electronic funds transfers (EFT payments)? And how do I create one?
What is an EFT payment?
EFT stands for electronic funds transfer. An EFT payment is a bank to bank transfer initiated by a payee when the payor gives the authorization to do so.
These types of payments move money across a network, between banks, and frequently replace paper methods for making payments like cash or cheques.
You have probably sent or received EFT payments many times in your life, maybe without knowing it. Authorized your utilities or phone companies to automatically withdraw your monthly payments? That’s an EFT payment! Consumers, businesses, and government agencies use EFTs every day.
Pre-authorized debits and direct deposits are made possible by EFTs
Example path of an EFT payment
Step 1
Business invoices customer
Step 2
Business obtains customer's pre-authorized debit agreement
Step 3
Business initiates EFT payment from customer with third-party processing software
Step 4
Funds are transfered from customer's bank account and deposited into business'
Direct deposits are credits sent to a recipient's bank account. Often, paycheques and government benefits are deposited this way. These are all done with an EFT.
Pre-authorized debits (PADs) are payments withdrawn from a bank account. PADs are typically used to charge recurring payments like rent, donations, utilities and more.
Businesses can use EFTs in these ways to send or receive payments from suppliers or clients. Customers can pay businesses faster and more reliably by using an EFT payment options. Sounds great, doesn’t it? Later in this post, we’ll outline more benefits of accepting EFT transfers.
How do businesses get started with EFTs?
If you want to accept EFT payments from your customers, you are legally required to receive authorization (and document it). The Canadian Payments Association is the governing body that outlines and regulates the rules of EFT payments in Canada. It may seem complicated at first, but it’s simple. Your customer agrees to pay you with an electronic funds transfer, and you’re not waiting for another payment ever again!
How to create an EFT agreement and get paid
This is what an agreement looks like for an EFT payment:
If you follow along with the number guides, here’s an explanation of the 8 requirements of the EFT agreement.
Contact Details - So the payor can get in touch with you.
Pre Authorized Debit Category - Is the payor a person or a business?
Timing - This outlines to the payor when the payments are to be taken out (i.e. weekly, monthly, bi-monthly, annual, on set dates or otherwise.) You also need to explain if each payment is to be triggered by a specified act, event or other criteria. If it’s to be triggered by a specific act, it needs to be clear on what that is.
Amount - So the payor knows how much is being taken from their account. If it’s an open or variable authorization, it needs to be clearly stated.
Authorization Statement - A clear statement that outlines authorization to withdraw funds from a particular account.
Recourse Statement - So the payor understands their rights to stop the agreement.
Cancelation Details - So the payor knows how to cancel the agreement.
Date of Agreement & Signature - If in a physical paper form
The next step is to find a payment processor because, in order to withdraw money from your customers’ bank account, you will need to find a processor who can facilitate the payment. This is typically your bank or a third-party payment processor.
Finding a third party EFT processor
Unfortunately, bank systems are pretty complicated and do not integrate well with your accounting system. Third-party processors usually have integrations and give you a much more competitive rate for lower volume transactions. The user experience is also way friendlier.
At Rotessa, for example, we have a tool that creates an authorization form for your EFT payments. You can email customers with a unique and secure link that this tool provides.
Pre-authorized debit payments are simple and quick with Rotessa
Rotessa is your trusted partner for seamless payment automation and secure recurring payments. No onboarding costs or percentage-based fees.
Setting up a payment
Once you've signed up with a processor you will get access to an online app. This app will allow you to set up and schedule payments from customers (once you get their EFT agreement). When setting up a payment, you need to outline the amount owing, the schedule and/or frequency of payments, and the number of installments.
Your EFT payments will now be automatically withdrawn from your customer’s account and deposited into yours according to the specified frequency and installment schedule.
With EFTs it is important that you remember that when you are scheduling payments, the processing date on your scheduled transaction is the day the money will be withdrawn from your customer’s account. With most processors, you will receive the settlement of funds a few business days later. Therefore, make sure to schedule accordingly.
On the settlement day, your payment processor will provide a settlement report of the EFT payments. With Rotessa, you get those reports for free and you can integrate them with your accounting software to reconcile those settled payments.
Four reasons to collect payments with EFTs
Reason 1: control
Most businesses receive payments by sending the customer an invoice and waiting for a credit card transaction or a cheque. This payment workflow can be a problem because it gives the customer the prerogative to initiate the payment. An EFT payment workflow, on the other hand, gives the prerogative to the business by allowing them to initiate payments from the customer.
As a business, you have no control over payments with credit cards and cheques. When you don’t have EFT payments set up, you are at the mercy of your customer and are probably waiting on them to pay you. You already provided your service, why should you allow your customers to choose when they pay for it? With EFT payments, you decide when payment is withdrawn from your customer’s bank account.
Reason 2: cost of credit cards
The true cost of credit cards is not beneficial to small businesses. Yes, you want to give your customers every opportunity to pay you, but how much does processing credit cards cost? Most online credit card processors charge 2.9% on every payment. So, if you invoice a client $500 you'll be paying almost $15 just to process one payment!
EFT processors don't charge a percentage fee (depending on which one you choose). With Rotessa, for example, that $500 invoice could cost as low as 30¢ to process! Businesses can save tens, hundreds or thousands of dollars every month with EFT payments.
Reason 3: timeline of cheques
Each time a customer sends you a cheque, you have to deposit it and reconcile it with your accounting platform. This is a time-consuming task that could be better spent on growing your business. With automatic EFT payments, you can schedule those payments in advance with no need to leave the office.
Reason 4: customer relationships
For many businesses, getting paid with other payment methods can create strained customer relationships. Not only is payment chasing frustrating, it can cause awkward confrontational interactions with customers. When a business and customer use an EFT they both agree on a processing date and an amount for the payment.
EFT payments give you the ability to collect payments easily, on a timely schedule, and with all the convenience of traditional digital payments. Want to give EFT payments a try? Simply set up a free Rotessa account!