Taking Payments in the 21st Century

When you need to collect payments from your clients, you might be confused as to which will benefit both you and the clients themselves. There are a number of different ways that you can collect the invoiced amount, and these methods can vary depending on the type of work carried out and the location. Taking some time to figure out what is most likely to make your working practices more efficient can be a great way to make the payment process smoother for all involved.

Bluetooth Payments

Although Bluetooth was first created in 1989, it has become much more popular in recent years. You can get hold of an NFC card reader that will allow you to take payments on your smart cellphone or tablet, linked directly to your business bank account, from any location. This will give some extra flexibility if you work at a number of different residential or trade locations within your role. As long as you ensure that your cellphone and card reader are charged and operating, then you can continue receiving payments. There is also usually no minimum amount that needs to be paid, however, you will still need to adhere to the maximum available contactless payment that can be made, which is currently set at $100.

Wire Transfer

For exceptionally large payments, such as individuals who do extensive building work or repairs, you may need a means of getting paid that is not bound by certain limits. Having your clients pay via a wire transfer can be a means of accomplishing this. This type of payment can also be highly beneficial for those who will not be seeing their client again after work is completed, or where trade is finalized remotely, as it involves the client entering your business bank details into their transfer operator of choice, and the money is then passed from one account to another. Some operators will also have security checks in place to validate the information given, to prevent fraudulent moving of money, as well as to ensure that the correct business name is attached to the details.

Cash Payments

Even though there are some more high-tech means of paying an invoice available, you may also have clients who prefer to pay you in cash. This will need to be logged within your company accounts, and it is important that the money is also stored correctly, as it will still count towards your overall earnings, even though it has not been gained by digital means. As with card payments, you need to make sure that any cash income is also listed within your tax return, to keep your business as compliant as possible.

One of the great joys of working for yourself, or owning your own company, can be receiving payment after the completion of a job. To make sure that the handling of any money is achieved safely and promptly, you can give due consideration to the different methods of payment, to see which most suits your business needs.

The views expressed in this article are those of the authors and do not necessarily reflect the views or policies of The World Financial Review.