Electronic Payment Habits So Easy, You’ll Start Them Yesterday

change-mindset

We can all relate to those tasks on our desk that we have procrastinated getting started on.  They sit on our desk like an ugly paperweight that’s the size of a large rock….maybe boulder. I hate to state the obvious but, it is easier to start a good habit than it is to break a bad one.  In other words, it is easier to never have the paper weight tasks sitting on your desk than it is to remove these tasks.  The trick is making the good habits easy to start.

When it comes to electronic payments, there are several habits that are so easy; you’ll wonder why you didn’t start them yesterday.

Take advantage of supplier discounts

Supplier discounts are always a nice incentive to pay your invoices early.  But if you’re sending a cheque in the mail, how can you predict if your payment will arrive before the discount deadline?  Schedule your electronic payments on a specific date to guarantee you will receive those supplier discounts.

Batch payments for easy bank reconciliation

Consider the timeline of your payroll and payment runs.  Are you often making them during the same week? Same day? If you are able to batch your payroll and payments runs on the same day, your payment batching will make for easy bank reconciliation at month end.  Payment batches are consolidated to one reconciliation line.  When you process 15 payroll deposits and 10 invoices, you no longer have 25 lines to reconcile, it is simplified to a single line.   

Schedule payroll in advance

Many payroll runs are on a consistent schedule, for example, bi weekly, semimonthly, or weekly.  You can schedule your direct deposit payroll batches in advance to eliminate the wave of stress that flashes upon you as payday grows near.  If you need to take holidays, schedule the payroll before you leave.

Which habit do you think is easiest to start?