bacs software has been around for decades now, but it still has not been universally adopted by businesses. This is odd when you consider the many advantages of making bacs payments, rather than older and less reliable or secure methods. There is still some suspicion about trusting computers to do your work for you, and people tend to be warier than ever where their money is concerned. The maxim holds that a chain is only as strong as its weakest link, but that weak link is generally down to human error. In practice, bacs is a fast and reliable way of making payments to suppliers and receiving them from customers. It can save you time and money, and reduce the errors and risk associated with handling cash and paying third parties by other means.

Bacs stands for bankers automated clearing software. Essentially it is an electronic payment of funds from your account to another party’s account. This can take up to three days, but can equally be almost instant. (There is another version, SWIFT, which is guaranteed same-day.) Even in the worst case scenario, then, bacs is as fast as paying in a cheque or cash. It has several advantages over and above that.

One of these is security. Making online payments means you do not have to hold cash on the premises. It also reduces the scope for fraud, since you will no longer be writing out cheques. Reliability is another. The money leaves your account straight away, so you know how much is left, and you are not likely to be caused cash-flow problems by people delaying paying in cheques and then the money leaving your account unexpectedly. Plus, once you have correctly entered a payee’s details once, they can be reused after that. Paying the wrong person and having to regain the money shouldn’t be an issue.

Bacs software can be used to time payments, and in conjunction with accounting software can be used to take care of payroll commitments – automating pay day and saving a huge amount of time and effort, as well as reducing the error inevitable in doing the job manually. Bacs payments and receipts can also be combined with auditing software to further reduce error and duplicate payments, resulting in surprising savings for most businesses. In conclusion, there are several reasons to use bacs and few to ignore it.

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