Faster Payments are a relatively recent innovation (2008) in payments technology that deliver unparalleled time-saving efficiencies for accounting firms running payments on behalf of their clients.
Under the more widely used Bacs system, payments take up significant internal resource due to their heavy-handed setup, restrictive scheduling and slow clearing.
Using a Faster Payments enabled provider, such as Modulr, for payroll and payments will save accountants considerable time and deliver many benefits.
Easy setup
Bacs is a hassle for accountants to set up and to make payments on behalf of clients. This laborious process can be completed either by:
Becoming a registered Bacs bureau. This takes several steps, including contacting Bacs, filling in a Bacs Bureau Accreditation (BBA) questionnaire and being subject to an on-site investigation.
Or
Accountants applying for their own Service User Number (SUN) and making payments on behalf of clients from their own bank accounts. This process can take up to three months and require applicants to complete due diligence.
By comparison, accountants can get set up on the Modulr Payments Dashboard and make Faster Payments on behalf of clients in just a few days.
Flexible scheduling
There are no restrictions as to when Faster Payments transact or can be scheduled.
This overcomes the traditional limitations of Bacs and streamlines planning and processes related to making payroll and general payments.
Payments are less time-sensitive as transactions can be set up in advance, at any time. Benefits of this include payroll staff being able to set up payroll payments before they go on annual leave, and firms being able to smooth out scheduling payments over particularly busy periods.
Modulr provides accountants with further flexibility as its Payments Dashboard allows for payments to be set up remotely and securely using two-factor authentication, meaning staff don’t have to be physically present in the office and rely on physical banking devices.
Additionally, the Payments Dashboard can be configured with multi-level approvals. This enables the workload to be spread, with junior staff members setting up transactions and final managers just needing to approve them before they are sent to clients for final confirmation.
Instant clearing
The instant nature of Faster Payments makes it quick and painless to complete transactions at short notice. A typical example is missing a new starter off the payroll and only being informed by the client once payroll is completed.
Additionally, the incoming changes to HMRC’s penalties regime mean that accountants have a greater incentive to work with their clients to make related payments in good time. Even if it’s on the day of the deadline itself, as they can still clear in time with Faster Payments. This negates potential penalties and the associated administration.
While there are solutions for making emergency payments with other types of payment providers, these tend to be priced at a premium.
Fewer adjustments
The instant nature of Faster Payments means that cash in transit becomes a thing of the past. This eliminates the need for accountants to make adjustments for month-end accounts and cash flow forecasts, to account for Bacs transactions that have not yet cleared.
Move to Faster Payments today
Nowadays, it’s never been easier for accountants to incorporate Faster Payments into their workflows and take advantage of the many time-saving benefits that they bring. That’s because Modulr, a Faster Payments provider, has integrated with the software accountants already love and is powering the payments of the likes of Sage, BrightPay and IRIS. Together they’re bringing new (and faster) payment innovations to accountants and transforming the way they do business.
Modulr’s Payments Dashboard is a single online portal that brings all your workflows and payments together and automates them. Best of all, the dashboard integrates with you’re the accounting software you already use, such as Sage, BrightPay and IRIS, because we love them as much as you do! Which means you won't even have to consider an awkward breakup just to benefit.
Why Modulr? Well, Modulr is authorised and regulated by the FCA and we’re plugged into the same major payment schemes as UK banks, including Faster Payments, so your payments will clear within seconds, even on a weekend or bank holiday. The Modulr dashboard is secure and gives you and your clients full control and, because you'll be speeding through your payments within minutes, you'll have scope to start pushing your business in whatever direction you want to go.
Speak to an expert today.