Set Up Your Payments and Other Systems

Make Sending and Receiving Payments Easier

Handling payments is a daily task for most business owners—and it’s one that could cost you a lot of time and money without the right systems in place. Explore ways to get paid faster and streamline your payment process to keep your suppliers, employees and the government happy. Plus, see how the right accounting software and other solutions can complement your payments system.

Which Payment Solutions Are Right for You?

When thinking about your business, figuring out what solutions you need is an important step towards setting yourself up for success. Ask yourself these questions to determine which payment solutions could benefit you:

• What type of business account(s) do you need? Every company (even a sole proprietor) needs a business account(opens new window) to help process and keep track of incoming and outgoing payments. At minimum, you will need a business chequing account(opens new window) (also known as an operating account). Depending on your needs, you may also benefit from a business savings account(opens new window) or other account type(opens new window).

• Do you need an online store? If you want to sell your products or services online, you’ll need an online presence—and the ability to accept credit and debit cards online.

• What features do you need in a payment system? If you plan to accept credit and debit cards, a service such as Payment Solutions by Moneris(opens new window) will allow your customers to pay by credit and debit card online, in-store or on the go.

• What payment terms do you plan to operate under? Payment terms outline when you expect to be paid by your customers. Immediate payment, Net 30 (getting paid in 30 days) and other payment terms will impact your cashflow—and the way you send and receive payments.

How to Get Paid Faster

Getting paid on time is incredibly helpful when you own a business—but it doesn’t always happen. To help reduce the number of late payments you receive, here are a few things you can do:

• Make your payment terms clear with customers. If you’re operating a retail shop, clients will expect to pay for their purchases on the spot. However, payment for services or work you provide may not be as clear. Avoid surprises and let clients know upfront whether they’ll need to pay before the work happens, after the job is done or a mix of the two.
• Send invoices immediately. The sooner you send off an invoice, the faster you can expect to get paid.
• Opt for quicker terms on your invoices. A quicker term—such as immediate payment, Net 7 (typically paid within two weeks) or Net 14 (typically paid within two-three weeks)—hopefully means you’ll receive funds sooner.
• Have the payment options your customers want. If it’s easy and convenient for your customers to pay you, they’ll be more likely to do so quickly.

• Set up a payment collection strategy. Unfortunately, you may need to remind some customers to pay their invoices. Develop a process that encourages people to pay as soon as possible. Some programs, including Moneris(opens new window), have an automated system that can send out payment reminders on your behalf.

• Provide incentives for on-time payments. If the early bird gets the worm, maybe the person who pays on time should receive a discount or other benefit? Alternatively, you may be able to charge a fee for late payment.

Tip: Before you start taking payments or buying things for your business, get set up on a good accounting platform and link it to your business account(s). Having your accounting system set up correctly from the start can save you a lot of time and hassle down the road.

Making Payments

There are several ways you can make business payments and each one has its own benefits. Send funds to vendors and suppliers, employees and the government in a way that makes sense for you and your business—and keep in mind you don’t have to stick to just one method.

Accounting Software and Related Systems

There are other systems that can make the process of sending and receiving payments smoother:

• Great accounting software will save you time, hassle and reduce the amount of manual work required by your team. Depending on the size and scale of your business, you may need certain features to meet your day-to-day and overall accounting needs.

• Take your accounting system up a notch with RBC PayEdge(opens new window). It’s an accounts payable platform that integrates with popular accounting systems, including QuickBooks, Sage and Xero to automate payments to your suppliers in the format they prefer.

• Eliminate any potential payroll errors with ADP(opens new window), which helps you collect accurate employee hours and automatically calculate and use hours for payroll. Plus, it provides essential time-tracking data so you can better manage productivity. HR services are also available.

• If you plan to sell products online, you will need an ecommerce platform. That’s where solutions such as Moneris(opens new window) come in. Moneris does more than help you accept card payments—it can also help you build an online store to attract new customers and start selling online.