Bacs payments are quicker but still not universal

Bacs has been around for 45 years now. Despite this longevity, and its track record of being fast, easy and secure, bacs software has not been universally adopted by businesses and other organisations. It tends to be the smaller outfits who hold out the longest, for obvious reasons. However, instead of making bacs payments, many of these are still paying their bills with cheques or, in some cases, even with cash. This raises a number of issues and makes for inefficient and even risky practices.

Times are changing, and now the vast majority of financial transactions take place in the virtual world. The reasons for this are varied, but speed and security are common ones. It is very easy to transfer money with bacs, and because it includes several layers of safety measures it is very secure; should you – against all odds – run into a problem, you will almost certainly be insured and protected from any financial consequences, unless the issue is undeniably your fault.

Bacs transfers take a maximum of three working days to complete, but the new FPS (faster payments system) is almost instant, and costs no more. Effectively, when people talk about bacs nowadays, they are using it as a catch-all term for electronic transfers, including FPS.

All of this is important for organisations, even the smaller ones who are clinging to cheques and cash. (Although there was an outcry at the time, quite recently the banks suggested that they would be phasing out cheques within the foreseeable future – indicating the low regard in which they hold them…) No organisation, large or small, wants to have substantial quantities of cash on the premises. Furthermore, cheques are time-consuming to fill out, require counter-signing, and you have no idea when they will be cashed – which can cause cash-flow headaches.

So, if you haven’t already adopted bacs payments for your business, now is a good time. So many other outfits use bacs that it smooths the process of making payments – allowing you to budget more easily, and to devote time to other areas of your business that are more important. Everything can be automated, and bacs software can even be integrated with your accounts package, streamlining things further. Bacs is safe, secure, fast, and saves you time and money. At a time when every pound counts, this cannot be a bad thing.

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