One thing that you will want to realise if you are business owner is cost savings. Cost savings can be realised in a number of ways and the ways in which that can be achieved would be too many to list as what can be realised will vary from place to place. One thing that may be overlooked is the cost of getting paid for your goods and/or services.
Besides doing “well”, whatever it is that keeps a business in business, they need to get paid. There are a number of methods that a business may chose to get paid for their good and/or services. Some of the payment methods come at a cost and this may be a flat fee per transaction or a percentage per transaction that the business has to pay a payment gateway provider.
A high percentage of business transactions are now conducted online and one of the more popular payment gateways is PayPal. Depending on the type of transactions being conducted and the geographic location of the buyer and seller, PayPal fees can vary from 2% to more than 6%. And now comes in FreshBooks!
FreshBooks is a cloud accounting solution that allows small businesses to create invoices, track expenses and generate reports and taxes which is especially helpful when it comes to the tax time. To add to that, they also have a functionality that allows business to track time which can be an especially useful tool.
One of the payment options within FreshBooks is PayPal and one feature that is available within their invoicing system is the ability to selection PayPal Business Payments. PayPal Business Payments come at a cost of $0.50 per transaction. It makes a lot more sense to chose this option versus an option that charges you a percentage. You can do that math on an invoice that for interests sake is $3500 with transaction fees of 2.9%. Would you go with paying that figures in fees or a flat fee of $0.50?
Do this make sense to you? Let me know your thoughts by leaving a comment below.