By Nadine Pyter
The impact of the COVID-19 pandemic has been disastrous for most U.S. businesses, but it has also proven the necessity and benefits for contracting businesses to transition to digital payment processes. For service-based businesses like plumbers and HVAC contractors who by the very nature of their work need to interact with clients or customers, contactless and automated payment solutions are making it easier for them to provide a safe and secure experience to their customers. However, other efficiencies of automated and digital payments solutions, including cashflow management, faster revenue recovery and recurring bill scheduling are also being adopted more rapidly as contractors recognize the benefits of these solutions both now and in the long term.
Improve Cashflow Management
Managing cashflow is a top priority not just for contractors, but for all types of companies, and is key to operating a successful business. By adopting an omni-channel payments management solution that includes invoicing and recurring billing, contractors can enhance their business processes and spend more time focusing on their core services and customers, instead of their business’s finances.
Prior to the pandemic, traditional methods of manual invoicing and collecting checks were adequate. With the onset of COVID-19 shutdowns and subsequent re-openings, businesses are looking to streamline invoicing and billing, and get paid faster and with more predictability. Setting a recurring billing schedule with a card on file, or accepting credit cards via an online payment form (aka digital payments) present reliable ways to collect payments on time.
Variable payment options provide customers with the flexibility they have come to expect in all aspects of their life. Keep in mind that credit card payments can help customers manage their expenses during uncertain times. Accepting credit card and ACH payments are payment methods contractors should be offering, especially online and by mobile app to minimize personal contact from in-person payment and mitigate safety concerns for both customers and contractors. With mobile credit card processing, payments can be accepted wherever the contractor and the customer happen to be. Using a smartphone or tablet, payment software, and a mobile credit card reader also creates a seamless experience for customers who appreciate the ease of buying and paying with a credit or debit card.
For contractors who offer home or similar services, getting paid before leaving and moving on to the next customer ensures payment collection in real time. It also eliminates dependence and burden on customers to mail a check or log onto a website, as it can get lost in the shuffle of everyday life.
Collecting a deposit while in the field also guarantees a pending service or sale. By securing future business in the moment, the risk of customers having a change of heart is reduced.
Finally, secure mobile credit card payments are instantly recorded and posted. This information is readily available with access to a mobile device or tablet. Whether on the road or at a customer site, flexible payment technology like mobile credit card processing facilitates business operations.
Efficient Invoicing
Digital invoicing enables payment collection without direct customer contact. Automated solutions are available that generate professional, accurate and detailed invoices. They can also be programmed to charge late fees, itemize invoice details and auto-calculate taxes and discounts. Automated payment reminders and confirmations eliminate having to manually follow up with customers on their owed amounts or received payments. Additionally, payment tracking associated with invoices and received payments provides an accurate view of cashflow and exactly how many customers have paid and who holds an outstanding balance instead of a more antiquated spreadsheet (or guesswork).
Flexibility is also important to business operations when it comes to payment collections. While there are times when customers pay their balances in full, for many contracting projects there are instances where a one-time payment or a deposit is required, followed by recurring installments. A flexible invoicing solution allows both recurring billing and collection of one-time payments, so the needs of both the customer and the contractor are met.
Additional Features
People have grown accustomed to 24/7 access to information, shopping and other consumer services. To enhance customer service and satisfaction, online customer account management is another feature contractors should look for in their payment solutions. For example, providing a customer portal enables customers to self-service their accounts online. Updates to payment methods, contact information, and failed payment fixes can be done 24/7 without personal assistance.
Equally important for contractors is evaluating current systems and processes to determine if there are ways to consolidate solutions to improve operations and create cost savings. For example, some businesses use different payment systems to collect various payment methods and oftentimes, businesses with multiple systems also have multiple bank accounts that match up to each system. Transitioning to a payment collection system that handles all payment types through one solution and one merchant account will reduce this complexity. All cashflow records can be streamlined into one system and likely save costs.
With COVID-19 stay-at-home orders being lifted, contracting businesses have an obligation to adopt practices and processes that facilitate the personal safety of their employees and their customers. Digital payment solutions can help address these concerns while providing the opportunity to improve business operations at the same time.
Nadine Pyter is VP of Marketing at PaySimple, the payments management solution for service-based businesses, powering the cashflow of over 17,000 companies in the United States. PaySimple partners with businesses to drive growth with flexible payment and billing solutions and personalized customer service to suit their unique and varied needs. Visit https://paysimple.com/