SurePoint Insights: Simplify the AP Process with ACH
Automated Clearing House (ACH), also commonly referred to as eChecks, allows for electronic transfer of funds between customers and vendors. Many of us have ACH payments setup throughout our daily lives, including gym memberships, monthly subscriptions, daycare payments and more. If ACH can simplify the payment process as an everyday consumer, wouldn’t it make sense to apply this process to B2B transactions?
Below are the benefits your law firm can experience by transitioning from the use of paper checks to ACH:
- Cost: Eliminating the use of physical checks to pay vendors cuts back on the overall direct cost of running your practice. Firms who use ACH no longer need to purchase check stock, postage and magnetic ink character recognition (MICR) ink.
- Convenience: Give your team more time to focus on productive tasks rather than cutting checks for vendors. With ACH, your firm’s accounting department won’t have to deal with tedious invoicing and filing payment records. All transactions between you and your vendors will appear immediately on your firm’s banking statements.
- Remote Accessibility: ACH payments can be setup from anywhere at any time, providing your accounting department the business continuity to remain productive and efficient.
- Security: Sending money through the mail is risky. Between the time your firm’s check leaves your office and before it arrives at your vendors’ location, there are several opportunities for it to become lost or wind up in the wrong hands. Check fraud and forgery occur daily; however, ACH eliminates these risks and protects your firm’s sensitive banking information, including your account and routing numbers.
- Recurring Billing: It’s the first word of the ACH acronym – automated. Never miss a payment again by establishing recurring payments. This keeps your firm in the clear and continues to build trust between you and your vendors.
- Detailed Communication: Vendors who receive ACH payments from their customers have access to more detailed payment information and are automatically notified when an ACH payment has been submitted.