Why Accountants Should Understand Payment Processors
There has never been a better time than now to start a business. An almost infinite number of tools are designed to streamline company management online. One of the most popular tools is payment processing. Payment processors allow businesses to receive payments in person via card machines and online, enabling digital transactions. If you are an accountant, now’s the time to educate yourself about payment processors, because the chances are your corporate clients will use them. This post explains information every accountant needs to know about payment processors.
Financial Reporting
Payment processors are used by business owners to record transactions. The chances are that if you are a corporate accountant, rather than going through a business’s ‘books,’ you will instead log into their account with a payment processor to get an idea of their financial situation. The process of choosing a payment processor can be long and drawn out, but one of the main features business owners look for is accurate reporting. Familiarizing yourself with how payment processors work and how they record transactions is one of the best ways to get ahead in modern accounting. You will be able to quickly navigate the accounts of your clients and come up with accurate reports. It’s also worth noting that you yourself might benefit from opening an account with a payment processor, so you can take payment from clients, rather than asking them to make bank transfers.
Risk Management
Historically, accountants were used to identify instances of fraud. They would painstakingly comb through business records to find unusual transactions. Nowadays, fraud detection is mostly digital. Highly advanced algorithms are able to spot frauds going back decades. If you are a corporate accountant, it is a good idea to familiarize yourself with the technology employed by payment processors to identify fraud. Knowing how payment processors spot fraud can make you a much better accountant and even increase your personal knowledge of identifying fraud online. Often, algorithms will highlight suspicious activity, and accountants will be tasked with determining whether or not they really were fraudulent transactions. A course on financial fraud is worth taking, too. Learning about fraud can make you a much more attractive hire since it’s the biggest threat posed to businesses in the modern world. Cybercrime is out of control, so knowing how to prevent it can benefit your clients immensely.
Tax Preparation
As mentioned above, payment processors make it easy for businesses to keep track of their transactions. Rather than recording every business-related transaction in a ledger, businesses typically let them accumulate in their payment processor accounts, then at the end of the year turn to them and use the information to fill out their tax returns. Familiarizing yourself with how payment processors work will make it a lot easier for you to navigate their recording systems and file tax returns on behalf of your clients. Remember that different payment processors have different ways of recording transactions. Some create downloadable statements, whereas others allow you to search in their apps. It’s important to instruct clients not to use their business accounts for personal transactions because this can complicate matters when it comes to filing their tax returns for them.
Cost Management
The rates charged by payment processors are usually negligible compared to the ones charged by business bank accounts. Whether you are an accountant who’s interested in opening a payment processing account for yourself or you are finding a suitable payment processor for a client, it’s important that you find one with reasonable rates. The easiest way to find out what a payment processor’s rates are is to get in touch with them and ask directly. Some advertise their rates on their websites, however. Finding a payment processor with affordable rates should not be difficult, because there are many different ones to choose from. Don’t just think about rates, though. It’s also important to consider other things, like the payment processor’s customer support, fraud prevention, and even the quality of their app. Overlooking features just to save money is one of the worst things you can do when you are looking for a payment processor to open an account with.
Client Experience
As an accountant, your main priority should be perfecting your client experience. Clients need to walk away from interactions with you feeling like they made the right decision hiring you. A lot of accountants make the mistake of prioritizing everything other than client experience. Taking time to learn about different payment processors can improve your client experience because you will be able to talk to clients about the advantages and disadvantages of certain payment processors and operate their accounts for them. A lot of accountants are stuck in the past and prefer to do everything manually, i.e., keeping written records. Shifting your business into the modern world and integrating technology into your operations can do wonders for it. In addition to learning about payment processors, take time to learn about other types of technology, like all-in-one platforms, for example, so you can keep clients happy and improve their finances.
Financial Advice
One of an accountant’s main roles is to offer financial advice to their clients. Financial advice isn’t limited to recommendations on what to do with one’s money, i.e., investments and savings. Giving clients support in finding suitable payment processing accounts is also a form of financial advice. By learning about different payment processors, you will be able to help clients find accounts that are right for them. It is important to learn about the pros and cons of specific payment processors, so you can help them find the right ones, however. A good way to do this is to read reviews. A payment processor’s reviews will tell you a lot about them and help you decide whether or not they are right for you and your clients. In addition to reviews posted on Google Review and Trustpilot, see if there are any independent guides covering the payment processors you are interested in.Accountants should understand how payment processors work so they can support clients and help them find suitable payment processing solutions. They should also learn about them so they themselves can choose the right account for their accounting businesses. Make sure to consider the information given here when picking a payment processor, so you can select the right one.
Finance Writer
