A business bank account is the foundation of any small business. It is an invaluable tool for ensuring your personal and professional finances remain separate, allowing you to stay organized and protect yourself from potential tax problems while maintaining a good credit score.

 

However, before opening your account, it is important to think through choosing the right bank, types of accounts available, required documentation, digital banking tools, and more. Here are the important things to know when you open a bank account for your business.

 

Why Open a Business Bank Account

Managing a successful company requires keeping your finances in order. Establishing a dedicated business bank account helps streamline the process by protecting personal assets while ensuring accuracy when calculating income, expenses, and taxes. Investing in this small detail will provide tangible returns down the line. 

 

With a business bank account, you can easily manage the day-to-day finances of your enterprise. It provides an organized overview for tracking cash flow, analyzing expenses, and producing financial statements. In addition, having a dedicated account for your business conveys trustworthiness and stability to customers, suppliers, and lenders.

 

Also, a business bank account allows you to accept customer payments via check, credit card, and ACH, both in person and with digital invoicing. Embracing the power of modern technology will reduce your time spent collecting payments and improve customer satisfaction. 

 

Finally, lenders typically look for evidence of financial stability to secure a business loan or credit card. A business account provides an organized record of transactions, giving potential creditors confidence in the strength and reliability of your venture.

 

Choose the Right Bank

Once you have decided on the right time to open a bank account for your business, it’s time to find the perfect bank, your new partner. Thoroughly research all financial institutions that interest you, looking closely at fees, reputation for customer service, and convenience for both you and customers/clients. Other things to consider are competitive rates of return, such as interest yield, and additional business banking services available. 

 

You should also inquire about online or mobile banking options, including compatible software that may be available. Digital banking is becoming more popular and convenient for managing finances. The right bank will help you maximize your business’s potential, so it pays to compare every potential detail thoroughly. 

 

Account Types

After you’ve chosen a bank, you should decide which type of bank account, or accounts, are best suited for your operations. There are two main types of business accounts.

 

1. Business checking account – These accounts provide higher transaction limits than personal alternatives and sometimes benefit from accruing interest on balances. This allows you to capitalize on small profits over time as your organization grows. 
2. Business savings account – This type of account allows businesses to store funds in an interest-bearing account and is invaluable when planning long-term goals or cash flow emergencies. These accounts are designed to keep funds in one place for a more extended period of time and usually have limits on the number of monthly transactions. 

 

You could also benefit from having one of each account type. Your new partner, your banker, can assist you with the pros and cons of both options.

 

Required Documentation

 

Setting up a business bank account requires more than just filling out forms. Business owners must provide the following documents for review. 

• Copy of a government-issued ID
• Business license (if applicable)
• Certificate of formation or incorporation 
• Employer Identification Number (EIN) from the IRS
• The operating agreement, partnership agreement, or corporate resolution authorizing the opening of an account
• Bank statement from a personal account to verify identity and address
• Some financial institutions require your articles of organization 

 

Additional documentation, such as financial statements or tax returns, might be required depending on the processes of an individual bank or the amount of money you plan to deposit.

 

The Bottom Line

 

Owning a small business is an exciting and rewarding venture but can come with unique financial challenges. A dedicated bank account makes managing your business much easier and provides an organized space to track income and expenditures better while keeping your personal finances separate.

 

Opening a bank account for your business is essential to remain in good standing with the IRS and maintain strong financial health. It will also help you stabilize your future plans and keep on top of your financial obligations. Your success as a small business owner may depend on it! 

 

FINSYNC is a cloud-based platform that allows you to send and receive payments, process payroll, automate accounting, and manage cash flow. To learn more about how we can help your business start, scale, and succeed, contact us today.

Managing hospitality business finances can be complicated and time-consuming. Nevertheless, accounting software can make it easier for hospitality retailers, such as hotels and restaurants, to stay on top of their money. Features like cloud finance and automated reporting give business owners the benefit of accessing up-to-date financial data to promptly make informed decisions. 

With accounting tools available on mobile devices, hotels and restaurants can set up automated processes from anywhere. Ensuring all their financials are always up-to-date and accurate. Not only does this save time previously spent crunching numbers, but it also allows business owners to make better decisions based on this reliable data.

 

Here are 6 benefits of cloud-based accounting software for this hot industry:

 

Streamlining Financial Processes

In hospitality, bars, hotels, and restaurants, business owners are constantly juggling a multitude of tasks and responsibilities. With the advent of cloud-based accounting software, they can automate and streamline their financial processes from anywhere with their desktop or mobile device. 

This saves time, ensures accuracy, and significantly reduces the risk of errors. As such, hospitality owners have more time to focus on running their businesses and staff, making it easier than ever to manage their organization.

Real-time Data

Real-time updates give business owners a powerful tool for monitoring their business performance. Detailed data is essential in arming owners with the information they need to make sound decisions. Nowhere is this more important than in the hospitality industry, where rapid pricing and inventory changes can profoundly impact revenue. 

Regular tracking of these parameters can mean the difference between financial success and failure. Controlling these variables as they occur rather than retrospectively provides an added layer of responsiveness and agility when making critical decisions.

Improved Cash Flow Management

Accounting software that is online and in the cloud can be an enormous help for professionals in hospitality. First, this frees up valuable time by automating many of the mundane tasks associated with accounting. Second, it gives business owners a much deeper understanding of their day-to-day finances. 

Thanks to cloud-based software, owners can keep track of their restaurant operations without being present. Comprehensive account reconciliations ensure no discrepancies are missed, even if orders arrive while the owner is away. 

These automated checks and balances assist business owners in managing their cash flow more efficiently. Online accounting features allow entrepreneurs to accurately track their accounts payable and receivable while providing reliable data for tax filing, which is an absolute game changer!

Cost Savings

Thanks to cloud technology, hotel owners can keep their documents, such as receipts and invoices, safe and secure without needing physical storage space. Additionally, more money is saved by paying for services in the cloud rather than purchasing hardware such as servers or IT infrastructure.

Since cloud software is typically subscription-based, owners can scale their usage and only pay monthly for what they need. For example, if a company is not ready to hire employees, they do not need to pay for payroll services. With traditional methods becoming increasingly obsolete, the investment in cloud technology can provide significant savings over time.

Better Financial Reporting

Accurate reporting and financial statements are invaluable to business owners looking to maximize profits and minimize costs. Generating such reports is incredibly useful, allowing businesses to identify trends or issues that need urgent attention quickly. With timely financial reporting at their disposal, business owners can adequately plan and make decisions on crucial strategies that have far-reaching impacts. 

Furthermore, hospitality owners can take a proactive approach, adjust their strategies, and instantly recognize any areas requiring adjustments. This way, they can maximize their success in the present moment and anticipate what lies ahead.

Improved Collaboration

Cloud-based accounting solutions are revolutionizing the hospitality sector, making it easier for business owners to bring their accounting teams into a collaborative and efficient digital space.  

These solutions make it easier for team members to share expenditure information and track changes and enable workers to make decisions with confidence. Business owners reap the rewards through increased accuracy and unified operations, assisting them to succeed. 

Final Thoughts

As the hospitality industry continues to evolve, business owners must stay ahead of the curve regarding their finances. Cloud-based accounting software helps them do that, providing immediate updates and powerful financial insights at every step. This empowers leaders to make sound decisions quickly while keeping costs low – enabling a competitive edge over rivals in an ever-changing environment.

 

Ready to increase the efficiency of your business by automating your financial management? Take FINSYNC for a test drive with a free 7-day trial.

 

Small to medium-sized businesses (SMBs) are fundamental to modern life, providing goods and services that people use every day. They often give customers more personal attention and specialize in a select range of goods or services. 

But what is considered a small business? And how do they differ from an enterprise company? Let’s look closely at SMBs and enterprises to understand their distinctions better. 

What Is a Small Business?

Depending on the industry, a small business refers to companies with fewer than 1,500 employees and typically less than $50 million in annual revenue. Examples of small businesses include small retail stores, restaurants, plumbers, electricians, service providers, independent contractors, consultants, and freelancers.  

Small businesses are often B2C (business-to-consumer) operations that sell products directly to consumers or B2B (business-to-business) operations that provide services to other businesses. Smaller companies may also have few staff members or only one employee, the owner. 

Many small-to-medium businesses are incredibly adaptable in their operations, from the home office to renting out space and having a physical presence. The wide selection of resources available provides SMBs with everything they need to take an idea and make it into something truly successful.

SMB vs. Enterprise  

The most recognizable difference between SMBs and enterprise companies is their size. Enterprise organizations often establish global reach with annual revenue surpassing $50 million, multiple locations worldwide, and an average of 500 or more employees. 

In addition to physical size, market focus also separates SMBs from enterprises. While SMBs may focus on a single sector or industry, enterprise companies typically operate in several markets simultaneously, providing their customers with a wide range of services and products with the capability to invest in research that leads to groundbreaking developments.

Small businesses might have the disadvantage of being smaller than large corporations, but their size can be their greatest asset. Smaller companies have quite a few advantages that larger enterprises do not.

1. 1. Small businesses can be more agile when enacting changes and reacting to new trends in the business market. 
   2. Small companies are also better equipped to personalize their product or services because staffing is often more streamlined. 
   3. Small business owners also tend to be more involved on a daily basis with the operations of their company compared to large corporate counterparts, who could quickly lose track of critical, pivotal decisions being made on lower levels within their organization. 
   4. Because they’re less accountable to shareholders and other stakeholders, small business owners have far greater autonomy when it comes to decision-making, allowing them to focus on serving their clients or customers better than big companies. 
   5. Additionally, because workforces may be smaller at a small business, staff at all levels have the opportunity to learn a wide range of skills, allowing them to expand their horizons beyond what is normally expected from an employee of a massive company. 

Small businesses may appear to have the odds stacked against them, but they can quickly turn this adversity into an advantage. These smaller organizations often make more with less through a sharp focus on agility and cost efficiency. However, they are still prone to day-to-day challenges.

Small Business Pain Points

Small businesses face significant hurdles when competing with large enterprise companies. From having access to resources and capital to sheer size and influence in the market, larger companies often hold an edge. 

Many small businesses face an uphill battle against huge corporations that often dominate their niches. It is hard for the smaller players to make a name for themselves, but if they can find creative ways to market their services and stand out from the competition, success is definitely possible.

Other difficulties include establishing and maintaining trust with consumers; customers tend to lean towards more prominent brands due to their perceived reliability and eye-catching advertising. However, small businesses can utilize technology to create advertising campaigns and a unique customer experience. 

Additionally, smaller companies frequently struggle to attract top talent since they only sometimes have the means to offer high salaries or benefits packages that can match what big businesses provide. But leveraging data analytics and artificial intelligence (AI) are ways to work more effectively and efficiently with a small team. 

These obstacles make it difficult for small businesses to sustain a profitable operation and compete on an even footing with large enterprise companies. But overall, this gap is getting smaller.

Closer Than Ever

In the past, small businesses found themselves at a significant disadvantage to larger enterprises when it came to staying competitive. SMBs lacked the resources, technology, and sophisticated systems that large companies could access, making it challenging to keep up with their bigger rivals. Consequently, there was a wide gap between SMBs and enterprise companies in terms of security, accounting, and financial management, cloud technology, customer service, and many other areas. 

Today, thanks to technological advancements such as cloud computing and DXPs, the gap between SMBs and enterprise companies has narrowed significantly. Now more than ever, small businesses have the same access to sophisticated technology as larger companies without investing in expensive infrastructure or specialized staff. This means SMBs now have greater control over their operations while reducing costs. 

As SMBs become more competitively positioned with their larger counterparts, they must take cyber security more seriously than ever before. Using tools such as managed firewalls and encryption services, they can protect their sensitive data from malicious actors while protecting customers’ personal information in compliance with industry regulations. 

Furthermore, keeping up with accounting and financial management is crucial for smaller businesses as they seek to remain agile in an ever-changing landscape. By automating standard processes such as invoicing, payroll, and bill payments, SMBs can save time while freeing up resources for other projects. 

In addition to focusing on security and financial management, it’s also vital for small businesses of today to understand the customer journey if they want to stay ahead of the competition with larger firms. The ability to track customer activity across all channels, from website visits to app downloads, is essential for gaining insights into customers’ behavior to improve marketing campaigns or overall company initiatives. 

 

Helping small businesses is our core mission at FINSYNC. Centralize your accounting, payroll, and cash flow management on our all-in-one platform.

Tap into the hidden power behind your marketing agency’s success! Get a comprehensive knowledge of how to calculate profits, allowing you to make smart investments that will maximize returns. Now is the time to uncover profitable opportunities and grow your business like never before.

This article reveals the challenges within the digital marketing industry, keeping up with technology and pricing changes and calculating the key metrics you should be tracking to determine your business’s profitability.  

Challenges

Calculating the profitability of a digital marketing agency is no small feat. With multiple interconnected income streams from different services and clients, measuring a real return on investment can be very complex. 

Add to this the dynamic nature of a digital agency, in which new product offerings, changing advertising strategies, and rapidly evolving trends can lead to unpredictable fluctuations in income and costs. 

Despite the complexity of the task, it’s still crucial for agencies to gather this data periodically so they can plan appropriately and make knowledgeable decisions that help them sustainably grow their business. 

Pricing Switch

As technology continues to impact many industries, the digital industry has been particularly affected in recent years. Many businesses are moving away from time-based billing and opting for flat-rate pricing models. 

• • Time-based billing measures progress by answering the question, “How long did this project take?”
  • Value-based pricing recognizes that particular work may require more or less time, depending on individual variables, and places a greater focus on the perceived benefits of a job. 
  • Flat rate pricing goes one step further by lumping deliverables into established packages with fixed prices. 

Moving away from charging for specific hours produces a win-win situation for both customers and vendors. Customers will know how much they will consistently pay, while agencies can predict revenue and more easily set competitive prices without worrying about chasing hours for payment. 

As businesses become more creative about how they charge for their services, these new models will drive innovation in the digital industry for some time. 

However, your agency’s success depends directly on your profitability. Let’s explore the steps needed for this essential process.

Gross Profit Margin (GPM) 

The first metric to consider is gross profit margin or GPM. Gross profit margin is a great way to gain insight into the efficiency of your business operations. By subtracting costs directly related to production from total revenue, you can get an accurate representation of efficiency; if the GPM percentage increases, then your processes become more profitable.

Project Scope 

Determining gross profitability at the client or project level can be a valuable tool for understanding the financial performance of your business. Accounting software programs like FINSYNC offer an easy way to track this data, providing insightful metrics that allow you to assess better how much value each customer is bringing in and how cost-efficiently you are running your operations. 

As part of your analytics inventory, this knowledge will provide you with a clear roadmap to success. Understanding gross profitability and overall project scope, a process that helps determine the overall project goals, can empower you to refine your budgeting measures and make decisions that drive increased profit and return on investment (ROI).

Marketing Agency Rule of Thirds

What is a successful marketing agency’s gross profit margin? Here we coin an old photography phrase, the rule of thirds, which has adapted to several different industries. This simple concept suggests that your business income should be divided into thirds. One-third is directly transferred to your employee wages, one-third to overhead, and the final third is your desired profit margin. 

The rule of thirds permits businesses to make enough profit while still having the resources to build their agencies in other areas. It also encourages reinvestment so agencies can continually improve while still having room for revenue growth. Finally, this method allows you to adapt quickly if market conditions change. 

Knowing what ideal profit margin you would like to achieve before determining expenses can be instrumental in setting yourself up for long-term success in the digital marketing space. Overall, marketing agencies often succeed with net profit margins ranging from 6-10%, with digital firms pushing the envelope even further, achieving 20% net profit or higher.

Conclusion 

At the end of the day, your business boils down to one thing – profit. Gross Profitability and strategic project scope give us a vivid reflection of how well your efforts are performing. This information can then be used to target resources, drive decision-making, and inform future projects in a way that keeps the company running efficiently and successfully. 

Furthermore, state-of-the-art accounting software helps businesses go beyond simple revenue and cost analyses to drill down into the details of their performance. Utilizing gross profit metrics and project or client costing insights gives business owners invaluable information on what’s leading them toward greater success.

 

FINSYNC continues to assist businesses in staying ahead of their competitors. Don’t miss out on future tips and tricks. Sign up for our small business blog. 

 

Managing a small business is no easy feat. From managing cash flow and employees to keeping customers satisfied, entrepreneurs must juggle multiple tasks to keep their businesses up and running. Whether it be a point solution or a platform-based foundation, organization is critical, and a consistent process must be utilized. 

With the vast array of tools available, modernizing your operations with technology can be overwhelming. Finding what fits best for you amidst all this noise is key to effortlessly optimizing business processes and increasing efficiency.

Do you need a platform or point solution? What’s the difference between the two, and which is right for your business? Keep reading to learn more.

What is a Point Solution?  

A point solution is a single software application that serves a specific purpose, such as Skype or Slack. These software solutions are typically easy to set up and self-contained, with no additional programs required to run and use, but have little customizability or scalability. Point solutions might be right for businesses with very specific needs that can be met by one particular application. 

Point Solution Pros and Cons

Point solutions have a few advantages over platforms regarding running your business. First, point software is designed for specific tasks, so it tends to be simpler to use than platforms, even for people with little technical expertise. 

However, some disadvantages are associated with using point solutions compared to platforms for your business needs. 

Initially, software presents a convenient approach to completing specific tasks, yet its lack of flexibility can prevent it from having the extensive capabilities that platforms provide. 

Also, while most software programs offer regular updates and security patches free of charge, some older programs may no longer receive these updates. This older, outdated software can sometimes leave your business vulnerable if you continue using them. 

A great example of this is running an old, out-of-date accounting software like Quickbooks Desktop that is not cloud-based or even online. It is imperative to resolve this situation by switching to newer versions or an alternative program if you are currently in this situation. 

Platform Solution

A platform is a type of software that provides a foundation on which other applications can be built. Developers often use platforms to create new applications or house existing applications in one place. However, businesses can also use them to develop internal tools, APIs, or integrations with other systems. Popular examples of platforms include SalesForce, HubSpot, and Google’s Android operating system.

Advantages of Using a Platform

There are several advantages to using a platform over traditional software for your business:

1. 1. Platforms tend to be more flexible than software. This means that you can often customize them to fit your unique needs.
   2. Because platforms are designed to support multiple applications, they offer greater functionality than most software programs.
   3. Platforms are often easier to use than software because they provide users with a consistent interface across all applications.

Many businesses have begun to rely on platforms for their operations instead of traditional software. This shift has provided more benefits, including cost savings, improved performance, and better customer experience.

Scalability

With a platform solution, you can easily scale up or down as needed to meet the demands of your changing business needs. For example, suppose you need additional users or employees or have access to new features such as payroll. A platform solution allows you to purchase these without buying an entirely new system or worrying about compatibility issues with existing systems. 

This built-in flexibility helps ensure that your business remains agile, allowing you to pivot quickly when faced with changes, demand shifts, or other outside influences. Platform solutions can provide an excellent foundation for businesses looking for agility and flexibility in the ever-changing market.

Time Savings & Security 

Protecting your data is paramount, and platform solutions are designed to keep it secure. They’re hosted on highly guarded servers with built-in firewalls and safeguards against cyber security threats like malicious software or data breaches, giving you the utmost peace of mind that your information stays safe.

Additionally, because everything is under one roof with platform solution providers, including customer service, this removes the need for managing multiple vendors who offer point solution services which can save time in the long run.

Conclusion

When looking for an accounting service that is easy to use and offers all the benefits of point solutions and platform integration, look no further. FINSYNC’s business platform gives you the best of both worlds. You get user-friendly software with an all-in-one convenience explicitly designed for small businesses like yours. 

We know firsthand how challenging it can be to start your own business, especially on a tight budget. That’s why we offer a powerful platform with affordable packages that will fit any size company regardless of their financial situation. 

 

FINSYNC is the only all-in-one platform that helps businesses sync all their finances, centralize cash flow control, and automate payments and payroll for your organization.

Knowing what holidays are coming up in the year ahead is essential for small business owners. Not only do you need to plan for your own operations, but you also need to be aware of the holiday landscape to plan and pay your employees. 

In this article, you will find the 2023 holiday calendar, a detailed overview of Juneteenth, discuss holiday pay in certain industries, and examine the argument that US voting day should be a federal holiday. 

 

 

Juneteenth’s History and Significance

Juneteenth (June 19) is a day of commemoration and celebration for African-Americans. It marked the anniversary of enslaved people in Texas finally being granted freedom on June 19, 1865. This date occurred two years after President Abraham Lincoln signed the Emancipation Proclamation. 

Juneteenth has become a symbol of resilience and liberation throughout the United States. Also known as Freedom Day or Emancipation Day, celebrations occur across cities nationwide. In addition to commemorating emancipation from slavery, Juneteenth is also celebrated as an important milestone in civil rights history in America.    

Holiday Pay in Certain Industries 

Specific industries are required by law to pay employees time-and-a-half wages if they work on major holidays such as Christmas or Thanksgiving. This includes retail stores and restaurants with more than 500 employees worldwide; hotels with more than 100 rooms; hospitals; nursing homes; transportation companies; oil refinery workers; and workers employed by large amusement parks or theme parks (as defined by federal labor laws).

All other employers are not legally mandated to pay their employees extra for working on holidays unless their contracts specify otherwise. However, many small businesses have included this as a paid holiday for their employees to minimize signs of burnout. 

Therefore, it is critical to understand what kind of payment you will provide your employees throughout the year. Make sure to research local labor laws regarding overtime pay to ensure compliance with all regulations while still providing fair compensation for your staff. 

Voting Day Controversy

Nearly two centuries ago, Congress decided to create Election Day in 1845 to keep democracy fair and equitable. This life-changing legislation had the primary purpose of warding off any issues with early voting results influencing turnout or swaying opinion in later states, which could have potentially determined the fate of national elections. By setting one day for everyone nationwide, the Tuesday following the first Monday in November, Congress ensured that each individual’s vote would carry the same weight.

There has been a growing movement in recent years that calls for making Election Day a federal holiday so that citizens have more time to exercise their right to vote without worrying about taking time off from work or school. There are numerous arguments both for and against this new holiday creation. 

Proponents argue that giving citizens an extra day off would boost voter turnout significantly. At the same time, opponents claim it would be too costly and impractical due to logistical issues associated with running elections on one specific day each year. The debate continues; however, no changes have yet been made regarding this issue thus far.    

Conclusion

Holidays are essential to any small business owner’s operations planning process, especially regarding payroll management and scheduling employee shifts accordingly. We hope you found this information useful. By getting familiar with all upcoming holidays now, you’ll be better prepared when it comes time to make those critical decisions in just a few short weeks. 

 

Track time and expenses, invoice customers, pay vendors, process payroll and simplify your business cash flow with FINSYNC’s Accounting Platform.

Construction companies continuously struggle with labor shortages, rising inflation costs, and supply chain disruptions. But now you can help offset a significant obstacle within this industry–waiting for your customer to pay on an invoice.

Owning a construction business, you probably are already aware that sometimes it can take weeks or even months to receive payment on projects. This can make it challenging to keep up with production or invest in new growth opportunities.

However, there is a solution.

CollectEarly™ offers a way to get paid on your invoices immediately, so you can keep your business moving forward. With more liquid capital, you can easily adjust to new project demands and comfortably pursue new customers. CollectEarly™ is an essential tool for any business owner.

CollectEarly™

There is no need to wait to get paid. CollectEarly™ offers a solution to business cash flow problems by allowing owners to collect payment on their invoices ahead of time. This means construction companies can keep projects moving forward without waiting for payments, which makes CollectEarly™ a valuable tool for companies of all sizes.

Construction Expenses

Construction companies often have to juggle a lot of balls when it comes to managing cash flow. They have to pay for materials and labor while also dealing with the often-lengthy timeline of waiting for client payments. This can result in construction projects grinding to a halt due to a lack of funds, which can be frustrating for the workers, the company, and the client.

CollectEarly™ counteracts this problem by allowing owners to collect payment on their invoices on the same day. This means construction companies can keep projects moving forward without waiting for net 30 payments, which makes CollectEarly™ an essential tool for any construction company that wants to keep its projects on track.

Technology & Growth

The construction industry has long been known for needing to be faster to adopt new technologies. Although construction is highly technical, business owners have hesitated to invest in new tech that will eventually be cost-effective.

There are several reasons for this reluctance, which are listed below.

1. 1. First, construction is a high-risk business: any mistake can be costly, so business owners are understandably hesitant to embrace new technologies.
   2. The construction industry is fragmented, with many small businesses competing for work. This fragmentation makes it difficult for companies to justify the expense of investing in new tech.
   3. Third, the construction industry needs to be faster to professionalize, making it harder for companies to attract and retain talented employees who are comfortable working with new construction technologies.
   4. The final reason is where CollectEarly™ can really make a difference and this is in the lack of consistent cash flow.

You can’t afford to wait to invest in the latest tech that will save you money in the long run. So the more options you have, the better you will be able to be proactive with your capital.

Final Thoughts

As you are already aware, waiting for customers to pay their invoices can strain your resources, especially in the construction industry, where the labor demand is typically high. CollectEarly™ is the perfect tool to collect payments quickly and efficiently. Whether you’re looking for a simple way to collect payments immediately or need a more robust system for tracking invoices, FINSYNC has you covered. Stop waiting for customers to pay their invoices and start collecting early today.

 

Learn more about CollectEarly™ and start getting paid on your invoices in 4 hours versus 4 weeks.

October is Cyber Security Awareness Month, and there’s no better time to brush up on your cybersecurity knowledge. With so much of our lives existing in the digital space, small business owners must take steps to protect their businesses from potential attacks. 

Everyone can do a few simple things to stay safe online, like using strong passwords and being cautious about what information you share. This article will walk you through all the major threats that have emerged in recent years. Because being unprepared can have devastating consequences for your organization. 

Malware Attacks 

Malware is short for malicious software and refers to any harmful code installed on your computer without your knowledge. Malware can take many forms, but some of the most common types include viruses, Trojans, worms, and adware. Once installed, malware can damage your computer system or give hackers access to sensitive information stored on your hard drive. Always be cautious of links or downloads sent to you via email or direct message, as these may be malicious. If you’re unsure about a link, hover over it to see where it will take you before clicking on it.

Ransomware

Ransomware is a type of malware that encrypts or exfiltrates data and then demands a financial ransom, often cryptocurrency, for the data to be decrypted. Ransomware attacks can upset a small business’s digital infrastructure as they cause significant financial loss and downtime.

To protect your business from a ransomware attack, you should back up all of your data regularly. It would help if you also had security measures, such as firewalls and antivirus software. Also, employee education should be a priority. This alone will lessen the chance of someone clicking on a suspicious link or opening email attachments from unknown senders. 

IoT Devices 

IoT devices are connected to the internet and often collect and share data. Examples of IoT devices include thermostats, fitness trackers, and smart TVs. While IoT devices can be convenient, they also present a potential security risk. Hackers can gain access to IoT devices and use them to collect sensitive data or launch attacks on other devices on the network. 

Protection measures from IoT threats include purchasing devices from reputable manufacturers. You should also ensure that all IoT devices are properly configured and guarded with solid passwords. 

Denial-of-Service (DoS) Attacks 

This type of cyberattack is when an assailant seeks to make a machine or network resource unavailable to its intended users by temporarily or permanently disrupting services. DoS attacks can involve flooding the target with requests for information or resources so that it becomes overwhelmed and unavailable. 

Prevention of these types of attacks can be difficult, as they often exploit weaknesses in network infrastructure and take time to fix. However, there are some steps that organizations can take to reduce their vulnerability to DoS attacks. One is to segment their networks so that an attacker would need to compromise multiple systems to bring down the entire network. Another is to use techniques like rate limiting and traffic shaping to control the volume of traffic allowed to reach the target system. Finally, it is crucial to have a good incident response plan in place so that if an attack occurs, the damage is minimal, and systems are quickly returned back to normal.

5G 

5G networks are the latest and greatest in wireless technology, offering faster speeds and greater capacity than ever before. However, they also present a new vector for cybersecurity attacks. 5G networks rely on small cell towers scattered throughout an area, making them more vulnerable to physical tampering. The high speeds of 5G make it difficult to detect malicious activity; therefore, more data can be stolen within a shorter period. 

One way for businesses to protect themselves from 5G-related attacks is to use a Virtual Private Network (VPN), which encrypts data and helps to conceal your location. Consider installing a firewall detection system. These systems work by monitoring traffic flows and identifying anomalous behavior. By analyzing traffic data in real time, a detection system can quickly identify potential threats and take appropriate action. Adopting these precautions can help ensure that your data remains safe even as 5G becomes more widespread.

Phishing Scams 

Phishing scams are still one of the most common types of cyber attacks, and they continue to be successful because they are constantly evolving. In a phishing scam, a hacker will pose as a legitimate entity (e.g., your bank, Google, or even the IRS) in an email or text message and trick you into clicking on a malicious link or attachment. Once you click on the link or attachment, the hacker will access your computer system. 

SQL Injection

SQL injection is an attack that allows attackers to execute malicious SQL code on a database server. This attack exploits vulnerabilities in web applications that use SQL databases. By injecting malicious SQL code into an input field, attackers can gain access to sensitive data, such as passwords and credit card numbers. They can also delete or modify data stored in the database.

To protect against SQL injection, developers should implement input validation, database security controls, and application firewalls. Input validation confirms that only valid data is entered into the database, and database security controls restrict access to the database and prevent unauthorized users from accessing sensitive data. Application firewalls block SQL injection attacks by inspecting traffic and filtering out malicious requests. 

Man-in-the-Middle (MitM) Attacks

A man-in-the-middle (MitM) attack is when an attacker intercepts communications between two parties to eavesdrop on them or alter the communications without their knowledge. MitM attacks can occur over any communication channel, including email, text messaging, and even voice calls. In many cases, MitM attacks use public WiFi networks. 

Firstly, always check that the website you are visiting is using HTTPS. This means that the connection is encrypted and less likely to be intercepted by an attacker. Secondly, avoid using public WiFi networks as they are often not secure. If you must use public WiFi, use a VPN to encrypt your traffic. Finally, it is important to use secure communications protocols that employ encryption. By following these simple steps, you can help to protect yourself from MitM attacks.

Conclusion

As a small business owner, you are responsible for safeguarding your customers’ personal information. With the rise of cyber attacks, it is more important than ever to be aware of the latest security trends. Understanding the threats and taking steps to protect your data can help keep your business safe. 

Hackers are constantly finding new ways to exploit vulnerabilities in our digital landscape. Outdated software is one of the most common ways hackers gain systems access. Assure you have the latest security patches, and consider investing in cyber insurance if necessary. Taking these steps can help create a safer environment for your business and customers.

 

Free up time to focus on mission-critical areas by putting administrative tasks on autopilot with intuitive online tools like FINSYNC that can do the heavy lifting for you.

Is your business still depositing checks the old-fashioned way? If so, you’re not alone. Luckily, a payment solution can help expedite the process: FINSYNC Lockbox. 

With Lockbox enabled, your customers who desire to pay via check will see your Lockbox address on your invoices. The paper checks are routed directly to us. We convert them to ACH payments and match the payment to its invoice in your FINSYNC account. 

Lockbox eliminates the need for you to spend valuable time processing and reconciling your accounts. Whether you receive a few checks or hundreds of monthly payments, Lockbox allows you to receive this money quickly and easily without touching envelopes or manually making bank deposits.

Learn what Lockbox is, how it works, and the advantages it can bring to you and your organization.

What Is Lockbox?

Lockbox is traditionally a service offered by banks only to large companies that receive many check payments. Your business adopts the service, and the bank receives your checks at a PO box they control and then deposits them for you.

FINSYNC’s Lockbox is available to all subscribing businesses, regardless of size or check volume.

Simply enable FINSYNC’s Lockbox on your invoice settings, and you’ll see your remittance address (mailing address) has changed to an Atlanta PO box controlled by FINSYNC.

Besides being available to small businesses, FINSYNC is also unique in offering a Lockbox that is tied to your accounts receivable in your accounting software. When a check reaches your FINSYNC Lockbox, it’s automatically applied to the invoice (changing its status to paid), and the corresponding bank deposit is already matched to the invoice.

In other words, you no longer have to go through unidentified deposits on your bank statement and match them to invoices!

Companies today are always looking for ways to streamline their operations and reduce costs. One way to do this is by automating your payment process. This can save your organization considerable time and money and provide greater control over your accounts. 

At its core, Lockbox is a payment processing service that streamlines the accounts receivable process for businesses. 

How Lockbox Works

Businesses that use the FINSYNC Platform can take advantage of our company’s existing P.O. Box to receive payments. Your customers will first mail their checks to the address indicated on the invoice. The remittance documents are scanned, and the payment information is captured automatically. The amount is quickly transmitted to the business account, making it easy to keep track of incoming payments. The cost is only $1.00 per check deposited, scanned, and matched to a transaction on your behalf.

Here is a snapshot of the Lockbox process offered through FINSYNC.

Lockbox enables gig workers, digital nomads living abroad, and organizations with corporate clients in the US to get paid quickly. You must be a subscriber of FINSYNC’s Payments plan ($10/month) to use Lockbox. There is a $1 per check-deposited fee thereafter.

Advantages to Lockbox

There are several advantages to using FINSYNC’s Lockbox service to collect paper checks. We have listed a few ways this feature can help you stay ahead with your business’s financial management. 

Reduced processing time: When checks are sent directly to a business, they may need to be sorted and deposited manually, which can take time and potentially visits the bank. Checks deposited into a lockbox are typically processed faster, allowing business owners to skip the hassle of accepting paper checks.

Improve cash flow management: Since the funds are available more quickly, businesses can better manage their expenses and avoid bouncing checks or incurring late fees.

Fewer accounting errors: Having a third party handle check deposits can help to reduce accounting errors. 

Increase worker efficiency: Using a lockbox service can free up employees’ time that would otherwise be spent matching unidentified deposits or visiting the bank.

Conclusion

Despite the move towards digital invoices and payments, paper checks are still extremely popular in the United States. Some sources say 50% of all business-to-business transactions are still processed via check. Used by businesses of all sizes, Lockbox is a service offered by FINSYNC that allows customers to outsource the processing of their payments and can be a great way for businesses to streamline their payment processing and get paid faster.

 

Enable FINSYNC’s Lockbox, which is accessible for businesses of all sizes, to save you time for what matters the most.

If you’re a small business owner, paying and getting paid are likely two of your top priorities. Many organizations use the ACH payment method to accomplish these tasks. However, there are still numerous entrepreneurs who have not taken the time to learn the nuts and bolts of ACH payments and how they work. 

In this article, we’ll discuss all things ACH, from how they work, different categories and types, cost, and the time it takes to process them. So whether you’re a small business owner looking for a payment solution or just curious about this banking process, read our quick guide for a comprehensive understanding.

What Are ACH Payments?

ACH payments are electronic payments processed through the Automated Clearing House network. This network is overseen by the Federal Reserve and utilized by financial institutions to process transactions. The ACH network is a secure system that facilitates the electronic movement of money between bank accounts across the United States. Its processing infrastructure is managed by Nacha, a not-for-profit organization that sets the rules and guidelines for the network. 

More than 10,000 financial institutions participate in the ACH network, which processed over 29 billion transactions totaling more than $72.6 trillion in 2021. And this volume has steadily increased by more than $1 billion every year for the last seven years. 

ACH transactions are typically used for direct deposit of payroll or tax refunds, bill payments, and other one-time or recurring payments. They are settled in batches, often multiple times per day. The ACH network is affordable but has some drawbacks when compared with other payment systems. Its usage has grown steadily in recent years.

Categories and Types

There are two main categories for ACH: direct deposits and direct payments. The main difference between these lies with who initiates the transaction. Direct deposit is the most common type of ACH payment. When you receive a paycheck from your employer, the funds are deposited into your checking or savings account via direct deposit. This is a convenient way to receive your paycheck and allows you to access your money as soon as it is deposited into your account.

Direct payment is when money is electronically withdrawn from a payer’s bank account and transferred to a payee’s bank account. For example, you may use a direct payment to pay your rent or utilities or to make a purchase online. Direct payment is also convenient for sending money to friends and family members.

ACH transfers are a type of electronic funds transfer (EFT) that moves money between financial institutions. ACH transactions are transferred via credit or debit. Credit transfers are initiated by the payer and include payroll processing, tax transactions, and payments for utilities and mortgage loans. 

The payee initiates a debit transfer. The most common types of debit transfers include online bill payments and check conversion. With online bill payment, the payee authorizes the biller to withdraw funds from their account to pay the bill. 

In a check conversion, the payee authorizes the merchant to convert the paper check into an electronic payment like FINSYNC Digital Lockbox. Debit transfers are convenient for both payees and payers. However, it is vital to note that when a debit transfer is initiated, the payee is authorizing the payer to access their funds, so be sure that you trust the payer before allowing a debit transfer.

ACH payments are convenient because they are processed quickly and securely and are less expensive than other payment types, such as wire transfers. 

ACH Processing Time

The funds are not received immediately after posting an ACH transfer. The ACH network operator processes these transactions in batches up to seven times a day, and your bank may take one or two business days to post the transfer to your account. Many ACH processors connecting to financial institutions move funds to a clearing account before the destination. Therefore, if you make an ACH transfer on Friday afternoon, your recipient might not see the funds until Tuesday or Wednesday morning if there are no bank holidays to consider. 

If you need to make a transfer that will be processed immediately, you’ll need to use the wire transfer system instead. Wire transfers are processed in real-time, meaning the funds are transferred immediately. However, they can be expensive, sometimes costing $30 or more per transaction.

ACH Transfer Fees

Automated Clearing House (ACH) transfers are a common and convenient way to move money between bank accounts. But what do they cost?

Generally speaking, ACH credit transfers are free or very low-cost. Many banks will charge around $3 for an external transfer, but many also offer them for free. There is usually no fee to receive an ACH transfer. Checking with your bank or payment platform is essential to determine what fees might apply before you initiate a transfer. FINSYNC’s ACH transaction fee is 50¢ whether you are sending money for a bill payment or receiving money when someone pays your invoice.

ACH debit transfers, such as payroll and most bill payments, are typically free. If you need expedited bill payments, there can be fees.

Person-to-person payments that you initiate through your bank or third-party apps such as PayPal can cost a small fee, depending on the platform and payment method. But overall, ACH transfers are a cheap and easy way to send money between accounts.

If you are looking for a more convenient and affordable way to send or receive payments, ACH Payments may be the right solution for your business. We hope that this information has been helpful and provided you with a better understanding of what to expect when using ACH Payments. 

 

FINSYNC simplifies your financial management. Take control of your cash flow and automate your payments to help you grow, scale and succeed.