Running a business is hard work. There are so many things to think about – from marketing and sales to operations and finance. One of the most important aspects of any business is getting paid for the products or services that you sell. This can be a challenge for entrepreneurs who are just starting out, and we understand that to the bone, so let us help you out by giving you some tips for creating a working payment system for your business. By the end of this article, you will know how to create paystubs, process payments, and, more importantly, how to get paid.
Strive for Flexible Payments
First things first – you need to have a way for your customers to pay you. Sure, you can always accept cash, but only having cash as a payment option won’t sit too well with your customers. You need to strive for more payment options. This can be done through online invoicing platforms like FreshBooks or Wave or by accepting credit cards through a service like Square or PayPal. If you’re selling physical products, you’ll also need to consider accepting checks.
Create a System for Your Employees
Your employees will want their payments to be on-time and accurate. To make sure this happens, you need to have a system in place for processing payroll. This includes having employees clock in and out, tracking their hours worked, calculating their wages (including any overtime), and ensuring that all withholdings are taken care of before issuing payment.
Consider Your Payment Processing Fees
When you’re deciding which payment methods to accept, you also need to take into account the fees associated with each one. For example, credit card processing fees can range anywhere from 0.25% to over four percent, so you need to make sure that you’re not losing money on each sale by accepting a certain type of payment. There are also fees associated with services like PayPal, so be sure to read the fine print before signing up for anything.
Get Paid Fast
Once you’ve figured out which payment methods you’re going to accept and the associated fees, you need to make sure that you’re getting paid in a timely manner. This means setting up a system where customers can pay their invoices online or, if you’re selling physical products, setting up a method of payment that will allow you to get paid right away – like using an instant Deposit feature. You also need to make sure that you’re sending out invoices as soon as the product or service has been delivered so that you can get paid ASAP.
The Bottom Line
Creating a working payment system for your business is essential, but it doesn’t have to be complicated. Just remember to strive for flexible payments, consider your payment processing fees, and get paid fast. With these tips, you’ll be well on your way to getting paid for the products or services that you sell.
Do you have any other tips for entrepreneurs when it comes to creating a working payment system? Share them with us in the comments below.
