No, times have moved on, and people pretty much expect to be able to purchase things online, or at the very least using their debit or credit card, if not contactless.

If you’re a business owner who has yet to make the switch to online payments, there’s simply no time to lose, and waiting any longer could result in you getting left behind.

But what exactly constitutes an online payment, and how do they work?

Also, what’s the cost involved?

Let’s take a look.

What are the benefits of online payment?

First and foremost, your business risks losing a sale if there’s no way for someone to pay via card, as they simply might not have cash on them (an increasingly common occurrence).

Like it or not, people have been conditioned to rely on online payment methods, and so carry less and less cash every year.

Being able to take card payments also means people will be inclined to spend more, as they’re not eating into any emergency cash reserves they do have.

Security is another big factor.

The reality is that businesses which deal in cash are more vulnerable to things like robbery attempts, putting staff at risk unnecessarily.

Conversely, when everything’s in the ether, it’s safe from physical threats.

Perhaps the biggest benefit, though, is simply convenience and accessibility, with online payments enabling customers to make purchases from anywhere in the world, and at any time.

This means businesses can receive payments instantaneously.

How do online payments work?

Online payment generally refers to when businesses accept electronic payments for goods or services purchased over the internet (or via card/contactless).

There are different types of online payments to be aware of as a business owner.

These include:

• Debit and credit card payments
• Bank transfers
• Digital wallets

Typically, payments go through a payment gateway and payment processor, and these authorise online payments by encrypting and transferring data securely.

Choosing the right online payment method

When it comes to choosing an online payment method, there are actually quite a lot to choose from, and some work better for different types of businesses.

It really comes down to what’s best for your business, based on your own unique needs.

With that in mind, the most common types include the following:

Credit and debit cards

These are undoubtedly the most common forms of online payment processing, mainly because of how easy they are to use.

To make an online purchase, customers simply enter their credit or debit card information into a payment gateway.

Or, if the sale is in person, they can use their pin or even just tap their card for smaller purchases (known as contactless).

Bank transfers

As the name would suggest, this method involves the transfer of funds directly from the customer’s bank account to the business’s bank account.

Bank transfers can be completed two main ways: either via online banking or with mobile banking apps.

Alternatively, they can be initiated and authorised through a retailer’s website or app.

Digital wallets

These offer a convenient alternative, allowing customers to store their payment details and make online payments quickly and easily.

Popular examples include PayPal, Apple Pay, and Google Wallet.

Direct debit

This is a recurring payment method where the customer gives permission for the business to withdraw a set amount from their bank account at regular intervals, much like a subscription.

Cryptocurrency

Crypto is a digital currency that can be used to make online payments in certain countries.

Although this is a newer option, it’s becoming more and more popular, and regulations around it are constantly evolving.

Setting up a payment system

For businesses, choosing the right online payment processing provider is key to being able to accept online payments.

There are some important factors to consider when looking for one, though.

For example, you’ll want to look for providers that offer advanced security features like fraud detection and prevention, as well as data encryption.

You’ll also want to consider the costs (transaction fees, setup fees, etc.) and also check how easily the payment processor can be integrated into your website or e-commerce platform.

Depending on the size of your business (and your plans for future expansion), you may also need a provider that supports multiple currencies and languages.

Popular online payment platforms and tools

Generally speaking, you’ll find that most online payment processors share similar features, and so your final choice is likely to be based on which you think best aligns with the unique needs of your business.

Whichever route you go down, the goal is the same – to make it as easy as possible for customers to hand over their money. Weigh up your transaction volumes, your customers’ preferred payment methods and how much control you want over fees and contracts, then pick the provider that suits you best. It won’t always be the one with the flashiest offer.

Get the basics right, and online payments stop being a technical hurdle and start being what they should be – one less reason for a customer to walk away.

Let’s compare some of the best payment processors for businesses in the UK to give you somewhere to start.

WorldPay

• Offers specialist payment packages for small and medium-sized businesses
• Supports a wide range of global payment methods
• A choice of countertop, portable, or mobile card machines
• Pricing split into two main tariffs (Simplicity and Custom), usually tied to an 18-month terminal hire agreement

Revolut Business

• Provides a wide range of payment processing solutions for small businesses, including in-person card readers, a free POS app compatible with iPhones, Macs, etc.
• Gives you the ability to accept online payments in up to 32 countries
• No hidden fees, and no set-up charges
• Fast access to money with 24-hour settlement, even on weekends
• To use Revolut Business’s payment solutions, you will need an account
• Prices start from £10 per month

Tide

• Banking and payment solutions for small businesses, including card readers, online payments, and Tap to Pay
• Standard and Plus card readers, both of which have Wi-Fi and lifetime free 4G connectivity
• Plus model allows you to print receipts
• You can rent or buy the device
• Alternatively, you can choose the pay-as-you-go model, with no monthly fees but an upfront cost of £159 and transaction fees from 1.39% + 5p

PayPal

• Offers a point-of-sale, card reader, invoicing, and an ecommerce platform
• Allows you to manage your inventory, send abandoned cart emails, and track your performance with real-time sales analytics
• Compatible with iOS and Android, accepting Samsung, Google, and Apple Pay
• 1.75% transaction fee
• Custom rates for businesses that take over £10,000 every month

 
Find more help in our online accounting hub, and learn more about how to find the right accountant for your business.

The post How Do I Take an Online Payment? appeared first on The Cheap Accountants.

Not only do you want to try and find the right person, but you should also make doubly sure that you actually need to be hiring someone new in the first place – especially if you’re a small business where every penny matters.

If you do decide you need to hire someone, you need to consider things like where to find your candidates, how much you want to pay them, and if you want to offer any perks.

We’ll break all of this down for you, and even explain what to do if a candidate makes a counter offer.

Identify the need for a new hire

It can sometimes be obvious that you need to begin the process of finding someone new. For example, if a previous employee hands in their notice.

For smaller businesses this can difficult to avoid, and talent retention can be a struggle if you’re up against bigger companies offering higher salaries. This means you may have to face the reality that people will come and go – at least until you grow your business to a point where you can offer clear progression.

Other times, it’s less obvious that you need to take on new staff.

You may just notice that your workload is getting a bit much, or that employees are missing deadlines. These can be indicators that it’s time to start looking for help.

It’s important to think about the long-term. If work is heavy at the moment because of a specific deadline or project, but this isn’t expected to last, then it may be better (and more cost-efficient) to outsource instead.

If that isn’t the case, and it’s busy around the clock – it’s time to look for your new hire.

Define the role clearly

Once you’ve decided you need to recruit, write up a clear job description which can be used to help advertise the role. This should outline things like:

• Key responsibilities
• Required skills and qualifications
• Experience level

You’ll also want to explain the reporting structure, as well as what success might look like in the role.

Lastly, if there are any particular benefits or perks to working in your business, be sure to list these too, as they may help entice potential candidates. An example might be free parking, or a catered lunch.

Determine salary and employment terms

The next thing to do is undertake some market research into average salary levels for the kind of job you’re looking to fill.

You’ll need to decide on the following:

• Salary range
• Benefits and incentives
• Working hours and flexibility
• Contract type (e.g. full-time, part-time, temporary, or freelance)

Again, if your resources are limited then you may need to place more emphasis on something like flexibility in order to still appear like an attractive option.

Choose where to advertise the role

Conduct more research and figure out which channels or sites will allow you to reach your target demographic.

Examples include job boards like Indeed, professional networks like LinkedIn, recruitment agencies, social media, and of course your own company website so that people can apply directly.

Internal referrals can be another good option given that an employee is unlikely to risk their reputation by referring someone who isn’t a good fit.

Conduct interviews

After drawing up a shortlist of suitable candidates, looking for both technical ability and also cultural fit, you can start the process of interviewing them.

Try to prepare structured interview questions, and in the interview itself, assess such things as the candidate’s skills and experience, problem-solving ability, and their alignment with your company’s values.

Don’t be afraid to hold multiple interview stages if necessary, and do your due diligence as an employer: contact previous employers or professional references, confirm the candidate’s employment history, etc.

You really don’t want to get this decision wrong, so feel free to take your time.

Make an offer

Think you’ve found the one?

Great.

Make them your best possible offer, including things like the salary, start date, and contract details.

Now, when you interview somebody for a job vacancy and offer them the role, they might sometimes respond with a counter offer, so be prepared to negotiate.

Their counter offer could be regarding hours, location, or responsibilities – but let’s be real: it’s usually about pay.

This may have always been their intention, and now that they know you’re interested in hiring them, they feel emboldened enough to try their luck.

Ultimately, it’ll be up to you to decide whether it’s worth it. You could come to an agreement with them. Say, for example, they’re asking for £5k more; you might agree, once they’ve completed their probation period.

Onboard the new employee

All that’s left is to provide a structured induction for your new hire, introducing them to the team and company processes. If it’s your first hire, make sure you’re registered for PAYE, and you understand how payroll works (when it comes to deducting things like NI and income tax).

Reiterate your expectations of them and even set some early goals to get things started.

Of course, you should also make yourself available to offer support and guidance during the early stages.

Before you know it, they’ll be part of the team!

Find more help in our online accounting hub, and learn more about how to find the right accountant for your business.

The post How to Recruit Someone to Your Business appeared first on The Cheap Accountants.

This article looks at the ten words which could be costing your business money and getting in the way of building more stable client relationships.

But

Making excuses already? Don’t give off the wrong impression to your clients by making it seem natural to use excuses. Instead of creating a problem, think of ways you can solve it.

For example, whenever you feel like saying ‘but’, replace it with ‘and’ or ‘so’. This way you’re suggesting solutions whilst drawing their attention to any potential obstacles. Although you might have to think a bit more to get your head around changing what you’re used to saying, it will be worth it from your client’s point of view.

Have to

When you’re on your way to becoming a successful entrepreneur, you shouldn’t ‘have to’ do anything. You’ve started your own company, you’re building it from the ground up and you are no longer restricted by nine to five hours!

Instead of ‘have to’ change your vocabulary around to things you ‘want to’ do. This small change won’t just have an effect on your vocabulary – it has the potential to change your lifestyle. If you begin to think about everything you ‘have to’ do, you might be able to come up with a solution and a way to make time for the things you ‘want to’ do.

Enemy

You may like to think of your competitors as enemies, but the reality is this is not (and should not be) the case. Competitors are often demonised (not least because of the shocking amount of Disney films that tell us this is ok) because we believe they can only ever be our rivals.

The truth is that someone who we today believe to be our enemy may in the future turn out to be a business partner. Competitors will be people in the same field and more often than not will have a similar way of thinking as ourselves. Don’t cut off ties already by branding them as your ‘enemy’.

Luck

To your new client, the word ‘luck’ is definitely not favourable – in any context. A client wants to hear that you are sure of your capabilities and know you can deliver the work to a high standard and on time.

So when you start throwing phrases like ‘with a bit of luck’ around, everything can become uncertain quickly. Statements of certainty will give your client peace of mind and give you an air of confidence.

Honestly

Honestly can be a tricky one to use correctly. Many people use it as a way to reassure another person; for example, “There is honestly no reason this could be late”. Instead of seeming comforting, this comes across as though the person is close to pleading.

Using ‘honestly’ can also suggest that the rest of what you say is not actually truthful – not the impression you want to give to a new client.

Very

Anytime you use ‘very’, everything gets a lot less specific. “I have a lot of very good ideas for your project” – are they very good, or are they great? When you’re speaking to clients you need to be as specific as possible so they know which direction you are heading in.

Another problem with ‘very’ is how subjective it is. Your idea of a ‘very’ good idea might not be the same as your client’s notion of a ‘very’ good idea. So if you’re unsure make sure you clarify.

Always

Using ‘always’ is a dangerous game to play. Unless you plan on becoming locked into one idea of something, then avoid it at all costs. Using confining words such as ‘always’ and ‘never’ restrict you to a close-minded way of thinking, and are rarely true.

Unless giving written commands or instructions find another words; or risk promising your client something that you may later be unable to do!

Just

Both ‘Just’ and ‘only’ fall into a similar category which is subjective and can damage your relationship with your client. For example, you might think saying “It’s just two pieces of work” is a way of you saying it won’t take long for you to complete.

However, to a client it may seem like “just two pieces of work” means you aren’t as equally committed to each and every piece of work, as apparently these two pieces are lesser than the rest. To avoid any sticky situations, steer clear.

Maybe

By the time you’re speaking to your client you should never be unsure about anything. Even if you don’t actually know what type of magenta their logo is going to be yet, you should be certain about when you will have a decision by. ‘Maybe’ is a one word way of saying “I’m unsure about my ability to complete this it could go either way” – definitely not a message you want to give your clients.

Using decisive language around clients will prove to them you have conviction and are able to take on this project and produce something fantastic. If you’re unsure during the process, it’s likely your client will be unhappy with the end result.

Literally

‘Literally’ is a similar word as ‘honestly’. You should assume that the person you’re conversing with is aware of whether you’re speaking literally or figuratively, because that’s normally pretty obvious.

So when you continue to use ‘literally’, you’re adding an unnecessary word that does not emphasise your point. Instead, you should be more specific. For example, “This is literally the best work I have ever done” could easily be “Compared to other pieces I’ve completed, this is the one I’m most proud of”. Which sounds more genuine to you?

 
Check out our accounting support hub for more help and resources, or to ask a tax question.

The post These 10 Words Are Losing You Clients appeared first on The Cheap Accountants.

Regardless of the industry that you are in, detailed planning and the right perspective for your business is vital for growing in a sustainable way. We have put together a list of steps you can take to manage your small business in a sustainable manner.

Business growth

To a certain degree you can plan for the growth of your small business and work out how to manage it when the time comes. However, no one is ever quite sure when that growth will happen. For this reason, it helps to have a few ‘what-if’ scenarios that you can turn to when an exciting growth opportunity arises.

You can start by identifying some key indicators that will help you to determine when a surge in growth is happening. An increase in sign-ups for your services or a surge in sales is an obvious indicator but what about all of the things that lead to that increase? Are you receiving more interest on social media, is there a news article about your company, exposure at a conference? Having a baseline of numbers will help to ensure that your systems can handle your growth.

Customer focus

As you start to see your business grow it can be easy to get even more controlling over what happens and you begin to take your responsibility to your customer’s demands even more seriously. However, perspective matters. Your business isn’t all about you – a surge in customer demand may mean you’re not able to run it the way you would like to. You may lose some of that control, and for a period of time flexibility and the right attitude towards customers is vital.

Be realistic

In some cases you may have to turn down business opportunities because your business is currently unable to meet the increased demand. It does not mean that your small business is a failure, it is simply confirmation that the demand is out there when you are ready to handle it in a sustainable and smart way. Be confident and when necessary take the decision to step back and plan properly to meet the demand and move forward.

We’d love to hear what your small business success stories are! Please like and share this article if you found it useful.

The post Managing your Small Business Success appeared first on The Cheap Accountants.