A Simple Solution to Beating the Deadline on Your Bills

As a small business owner, nothing excites you more than seeing your enterprise grow. You might as well compare it to planting a tree and waiting for it to mature. While the process takes time, it won’t take long for that tiny seed to bear fruit with a little patience and persistence.

All you need to do is to nurture your business. On top of growing your networks and providing clients with top-notch products and services, paying your bills on time is also essential. 

Let’s find out why and why it bears this discussion.  

Steering Clear of Penalties

We all get busy and often forget the things that can be most important.  Not paying your bills on time, even when you have the money, is a behavior that can cost you late fees, reconnect fees, and bad marks on your credit score.  Then your cost multiplies when you add in the time cost of the inconvenience of your lost service privileges, higher interest charges, and the cost brought on by a low credit rating. If you want to maintain a good credit record, you have to render payments on time. 

Fortunately, there is a convenient way you can settle your bills and avoid penalties for delayed payments. And no doubt, technology plays a significant role in this.

Today’s Banking Technology

Today’s banking technology offers automatic transfer options to pay your bills at the scheduled time.  

Many people avoid these automatic bill payment options. In fact, I resisted it for years myself but now find it SO stress relieving and freeing!  

Using Automatic Transfers

Some people’s reluctance to auto-draft is because they feel it is hard to manage and track outgoing payments.  To make it easier, set up a separate account dedicated explicitly for these automated payments.  I suggest doing one for your personal and one for your business; this keeps your money straight and saves you from bouncing checks (if you still even write them).  It makes things so easy to keep things on track and so much less frustrating.  Try it, and I bet you will like it!

If you don’t want to wait in line to pay your bills, you can always use tools or apps that automatically send payments from your business account before the due dates. 

Setting an automatic debit for the minimum monthly payment can help you save time and avoid penalties on deferments. That way, you can spend more time nurturing your business and prevent your credit score from taking a hit due to missed deadlines. 

Maybe you want to pay more on your credit card than the bare minimum (and you should); why not set an automatic debit for the minimum monthly payment? This small payment is manageable and not likely to overdraft the bank account if you forgot to plan for it.  This way, you make sure your bill is always paid on time without late fees, and gives you a great credit ranking. You can then set up an extra principal payment at your convenience to knock down the remaining balance.

The best part about scheduling automatic payments is the amount of control and transparency they give you. Every cent is accounted for, and you can modify your payment schedules to your convenience.

Even if you are not computer savvy and struggle with setting up these payments at first, you are not alone.  You will typically find the appropriate customer service department very helpful. 

Hang in there as any frustration is short-lived. When you get the hang of them, they will save you a lot of time and money over time! 

Business Untangled can help you nurture your business and break revenue records — with the help of the right tools, of course!  If you want expert direction on managing your business, innovative tax planning, or implementing QuickBooks, give us a call today!