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How to Overcome Business Reconciliation Challenges?
Bhavesh runs a general provision store in Borivali, Mumbai. He has been in business for more than 25 years and accepts payments primarily in cash. Over the years, he has built a large clientele to whom he regularly supplies goods on credit. After a financial crisis, Bhavesh has had a tough time keeping up with overdue payments. Tracking the refunds, product returns, discounts, incorrect billing and cleared balance, have all become quite challenging over the past few months as many of his employees haven’t been coming to work. Even his interaction with customers is limited to phone calls. To make matters worse, due to the gap in the payment cycle, some customers have argued over the amounts they have been charged. Given the situation, Bhavesh is concerned that his day-to-day bookkeeping might have gone wrong and added to his loss.
Cash flow problems due to incorrect reconciliation can reduce the margins of many small businesses. Though some stores have started accepting cards and digital payments, managing refunds is still a challenge.
Digital solution with HDFC Bank SmartHub A new generation digital payment management tool, SmartHub by HDFC Bank, is designed to allow retailers and other businesses to streamline their billing, credit management, automate billing and end-of-day reconciliation with the efficiency of technology. All it takes is a simple one-time setup.
Here’s how SmartHub can make calculating day to day collections easier and put an end to your reconciliation challenges.
Maintain and update individual records As a business owner, you will agree that accurate record-keeping is essential for everything from ordering stock to filing tax returns. And since the coronavirus pandemic began, keeping track of bills has been challenging due to limited working hours and the need to avoid overcrowding at cash counters. But with SmartHub, you can now digitally record and update every sale and generate accurate data for reconciliation at the end of the day. This will significantly reduce your time and effort in accounting individual monthly balances, thereby ensuring a smoother billing process.
Manage all types of payments Given the scenario now, where people avoid cash exchange, customers have taken to digital payment modes. In fact, digital payment volumes in retail are currently at their highest levels since demonetisation. With HDFC Bank SmartHub, you can accept payments through multiple secure modes and complete transactions in seconds. It allows scan and pay, tap and pay (Mobile Card Swipe Machine POS), wireless card swipe, online payments (credit card, debit card and NetBanking) and UPI (PayZapp).
Convenient invoice tracking Writing down due dates and outstanding amounts in a register brings with it the risk of calculation errors or oversights. So, shift to a digital platform like HDFC Bank SmartHub and make invoice tracking simple, prompt and effortless to ensure speedy authentication.
Besides, identifying the source of payments from invoices can be time-consuming and may require a lot of diligence on the part of store staff. With SmartHub, you can easily map the source to the corresponding invoice to save time and effort.
Automate collection of recurring payments Lending goods on credit is a great way to build trust and earn the goodwill of customers. However, collecting payments from regular customers on a monthly or quarterly basis can be a taxing task, and if not done correctly, could cost your business. Digital solutions like HDFC Bank SmartHub present a consolidated view of all pending payments, making the job of collections far easier.
Invoice based payment links Following up on payments is made easy with HDFC Bank SmartHub; you can email/SMS invoices with a system-generated payment link to customers, vendors and partners. This will save you time as you will not have to follow up on dues or document non-payments physically.
Managing refunds Through HDFC Bank SmartHub, payment reversals that are done digitally, are credited instantly and securely to customers’ bank accounts. This way, you can track all refunds/credits provided to simplify reconciliation.
Payment follow-ups Following up with customers for bill payment can be difficult. Thanks to this digital payments solution, you can now identify past-due customers and instantly send multiple payment reminders with just a few clicks.
Adopting digital means to simplify your day to day business tasks will not only increase the efficiency of your business, but the ability of technology will win the trust of your customers. So, sign-up for HDFC Bank SmartHub today and bid farewell to your reconciliation upheavals.
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