LUTZ BUSINESS INSIGHTS
5 Benefits of Online Banking
LAUREN HARRIS, cas manager
But think of it this way, many companies that sell online services hold up the financial industry as the gold standard for data safety, claiming they offer “bank-level security.” There are far more reasons to do your banking online than not. Here are five of them.
1. You know almost as quickly as the bank does when payments clear and deposits are recorded.
Online banking makes your financial information available 24/7/365. You can always call your bank and ask if a specific transaction has cleared, but do you want to do that a dozen or more times every day? If you’re accessing your data through an accounting application, categorization and reconciliation are much simpler, too.
2. You can catch errors faster.
If something is amiss with your bank accounts, do you really want to wait a month until your statement arrives to find out? If you made a big mistake with a check; a deposit didn’t get credited; or an unauthorized person is accessing your accounts; you risk overdrafts, service charges, and trust issues with customers and suppliers.
3. You’ll be able to dispatch bill payments directly from your online bank account.
This makes bill-pay not only easier, but faster, too. Major—and some minor—utility companies, retailers, and service providers accept electronic payments. So, some of your bills can be paid within a day or two. Your bank will send a paper check to those that don’t.
4. You’ll save money.
Anything that saves time saves money; it frees up hours that you can spend on critical managerial tasks. No more heading to the bank just to transfer funds, for example. Some banks charge a nominal fee for access and bill-pay, but you’ll more than make that up in the savings on postage, printer-friendly paper checks, and gas for bank runs.
5. Your business will actually be safer.
Not safe in the sense that a data hack is impossible; that’s a risk every time we share personal information online. But, online banking provides different kinds of safety:
- You can request alerts whenever specific account activity occurs, which will help you prevent fraud.
- You’re less likely to overdraw accounts and pay bills late.
- You’ll be able to do short-term planning with more confidence.
There’s another noteworthy benefit. If you’re doing your banking online—especially if it’s integrated with accounting software—it’s much easier and more economical for a financial professional to monitor your cash flow, create specialized reports, and assist with your financial information.
ABOUT THE AUTHOR
LAUREN HARRIS + CAS MANAGER
Lauren Harris is a CAS Manager at Lutz with over five years of related experience. She specializes in small business consulting including payroll tax reporting and compliance, software installation, training and support, and outsourced accounting assistance. In addition, she works with clients to improve their internal processes and procedures.
AREAS OF FOCUS
- Business Consulting
- Outsourced Accounting
- Payroll Compliance & Consulting
- QuickBooks Training & Support
- Accounting Software Consulting
- Franchise Accounting & Support
- Tax Compliance
- Restaurant Industry
- Construction Industry
AFFILIATIONS AND CREDENTIALS
- American Institute of Certified Public Accountants, Member
- Nebraska Society of Certified Public Accountants, Member
- Certified Public Accountant
EDUCATIONAL BACKGROUND
- BSBA in Finance and Accounting, University of Nebraska, Omaha, NE
COMMUNITY SERVICE
- Midwest YouCan Foundation, Treasurer
- Teammates Mentor
THOUGHT LEADERSHIP
- Accounts Payable Automation: 3 Ways QuickBooks Can Help
- 5 Ways Automated Accounting Software Can Save Your Business Money
- Travel Expenses Out of Control? Add an App
- 5 Ways to Prevent Data Breaches
- What Financial Statements Can Tell You About Your Business
- Billing for Time: How QuickBooks Does It
- 4 Ways QuickBooks Minimizes Accounting Errors
- 5 Benefits of Online Banking
- How to Choose the Right Payroll Method
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