Paper Checks Are So Last Year
Writing a check has never been more expensive and, luckily, this antiquated process could soon become obsolete. Businesses that still write checks could spend anywhere between $4 and $20 per check due to labor costs and processing. Not only are checks inefficient for the business, they introduce the risk for fraud and take time to process between banks. Changes in digital technology are paving the way to streamline the process, saving money for businesses and banks.
Check writing has come a long way, both literally and figuratively, over the years according to “The Last Flight of the Paper Check,” posted by Lamar Wilson on Tech.co. Nearly $6 billion in paper checks were flown on airlines to various destinations daily. Check 21 was enacted to reduce this inefficiency by allowing banks to use electronic images to settle accounts instead sharing physical checks. This notable improvement reduced the chance for fraud, cut down processing costs, and the cost for settling physical checks between banks fell to nearly nothing. Digital processes have continued to advance, offering companies new methods such as ACH, Paypal, and other electronic bill paying services to settle debts. However, as many as 50% of US businesses still rely on paper checks as a primary method of payment. Not only is the process outdated, it’s costly. Firms are spending as much as $54 billion writing and cashing checks.
Bitcoin and Blockchain offer a more efficient solution that can further streamline the settling process. This technology offers a secure transfer of value to and from anywhere in mere moments. This process offers remittance data and is programmable, enabling detailed invoice information to be sent along with the payment. With these modern solutions, businesses can strengthen financial operations, improve cash flow and reduce the costs associated with making and accepting payments while also adding transparency to the process.
Companies that can take advantage of these more advanced methods of settling debts can gain greater control over financial processes. Similarly, many modern enterprise resources planning (ERP) solutions can also streamline financial management and strengthen cash flow. Contact AKA Enterprise Solutions for more information about replacing outdated, inefficient technology, including check-writing, with today’s stronger business management solutions.