It isn’t uncommon to receive tracking details for orders we make online. Much like any product delivery or important mail, payments can also be tracked. In this article, we discuss what is payment tracking and the importance of keeping track of your payment records.
In the same way that you receive real-time updates from delivery firms, such as for a product you just bought online or for important mail, payment tracking provides you with real-time updates on the progress of your payment. You can see information such as the route your payment took, any routing bank fees or deductions, when the payment reached your recipient’s bank, and when it was credited to your recipient’s account. You may also be able to see the name, address, and SWIFT code of the bank that handled your payment.
A Payment Tracking System tracks and manages payments for various vendors through a web-based application. It consolidates payment requests and delivers all payment information in real-time. This allows companies to gain visibility over their Accounts Payable (AP) and Accounts Receivable.
Nowadays, most banks offer the possibility to track bank transfers via their apps, enabling customers to check the status of their payment at any time and to see added fees. However, tracking each payment manually is a cumbersome task that is far from reasonable, especially for large companies that collect and pay out money to thousands of customers on a daily basis. Manual bookkeeping doesn’t work anymore and is also prone to human error. That is why there are several tools and platforms that companies can use to automate their bookkeeping while still ensuring they can get a full view of their cash flow.
Insurers, for instance, use Direct Debit frequently to collect premiums. In order to keep track of every payment, they need to ensure they have a robust and digital mandate management tool that enables them to have all records on file, without the hassle of having to store physical contracts. They can also automate payments and check the status of the payment in real-time. Imburse offers a mandate management tool that manages all the components of your Direct Debit collections. This includes also unified reporting across all sources. You can learn more about mandate management services and how Imburse can help in our previous article. Also make sure to check our use case on Direct Debits.
There are several benefits to keeping track of your payments. We compiled some of them below:
Payment tracking enables you to keep a close eye on your financials over a fiscal year, which is essential to better manage your cash flow. The more visibility you have over your expenses, the more accurately you can predict how much money you will have and decide on what to do with that money. A key factor for businesses to thrive is to be able to have a positive cash flow, so monitoring it closely can help you to avoid surprises and enable you to make better business decisions.
Because you get greater visibility over your financials, this means you have a clearer idea of how much money you actually have and can calculate your expenses and revenue more accurately. Knowing your numbers is crucial, even to estimate the value of the company and to be able to plan ahead when it comes to investing money in new tools or products. It will also enable you to easily allocate the money you have available into different teams and activities.
As you will have complete records of your payments (both collections and payouts), when the time comes to file your taxes, it will be much easier to collect information. You will also be able to more easily separate the non-deductible expenses from tax-deductible expenses, facilitating the job of your accounting team. You should keep a record of every single payment made to or by your customers, as well as other vendors and partners you work with. Unified reporting enables you to do just that. No matter how many payment providers you are connected with, you are able to condense that information into a single platform. Learn more about unified transaction reporting here.
Recording expenses and knowing how much financial power you have enables you to allocate money to other tasks comfortably. It is crucial that you have enough money to cover for unpredicted expenses that wouldn’t usually be a part of your payment records, as well as enough money to give bonuses or reimburse employees for work expenses.
Imburse is a cloud-based middleware connecting large enterprises to the payments ecosystem, regardless of their existing IT infrastructure. Through a single connection to Imburse, enterprises can collect or pay out using various payment technologies and providers around the globe.
In a world where consumers’ payment preferences and technologies are ever-evolving, Imburse works with insurers to future-proof their payment requirements. Regardless of the business area, market, or needs, Imburse will connect you to your choice of technology and provider.
Reach out to our team below should you want to discuss how Imburse can help you. Our team is happy to show you what our platform can do for your business and offer you a free demo.