Making it Rain: Part 2
Payment processor options, integrations and policies to get paid
In May, we tackled criteria that indicate your business requires Accounts Receivable (AR) automation. The bottom line is, if you plan on scaling, payment processing automation is a must. Since I can only assume that you’re all on board, let’s dive into different software, integrations and policies that will build your sexy new AR system.
But first..
June Housekeeping
Second quarter (Q2) Estimated Tax Payments are due June 17th. The April newsletter walks through who needs to pay and how to estimate how much to pay. In my opinion, this 2 month quarter feels like entrapment - I mean, a quarter of 12 is 3, but what do I know? I’m just a bookkeeper. There’s not much to do except set a reminder on your phone so you don’t forget - or stay tuned to my newsletters where I will always keep you updated!
Grab your Galoshes, storm’s a comin’!
Which software?
There are SOOOOO many choices in this AR market. Google it and you’ll get bombarded. Square, Stripe and Paypal are the giants currently and have features that meet many businesses’ needs. Although they all have advantages, I’ll tell you now that none of them are my top recommendation for our clients.
Square
This is a great option if you take credit card payments on the go. The interface is user-friendly for the business owner and the customer. They also have a variety of POS ( Point of Sale) hardware that you’ve probably encountered in the wild like a card swipe that plugs into your phone, a contactless card reader, or a full terminal or register.
Cons: Overall cost and 24/7 support only comes with a monthly fee
Stripe
This is a great option if you’re in ecommerce running an online store. You can also set up recurring payments, payment links for websites and their customer service is excellent. It’s also the backend processor for other ecommerce software like Shopify and Freshbooks.
Cons: Overall cost and not user friendly, it requires a steep learning curve
Paypal
This is the best option if you are taking international payments as it supports 135 currencies.
Cons: Overall cost, no phone support option
If you are selling goods in multiple states, consider using Avalara. It is built for multi-state sales tax and it also integrates with Shopify.
Integrator Beware
Many AR software providers offer a QBO integration, but beware. While I encourage you to automate wherever possible, not all automation integrations are built the same. If they’re not mapped correctly, this is a really quick way to destroy your accounting system.
That may sound dramatic, but I encountered a client who mapped his Stripe integration wrong and then ignored it for 1.5 years. The business owner assumed that since the integration was set up, he didn’t need to check in with QBO. Once he got to us, it would have been too expensive to fix so we threw out his whole file and started from scratch - and that restart still cost him over $8k. This is a common clean up scenario.
The safe alternative is to leave the AR software separate from QBO accounting software and make a journal entry each month/quarter to bring things like sales tax and processing fees into QBO. This is something we can teach you how to do for your specific software setup, and because I believe every business owner should know how to do this, I’ll show you for free. Book a complementary 30 minute tutorial call!
What your bookkeeper uses
My top recommendation for an AR system – the one that I use and my #1 suggestion for all my clients is QB Payments. It’s 100% automated and the best on pricing (see below)*if you use my accountant referral link here*.
6/2025 Update: QB payments no longer caps which makes it a more expensive choice
The other big benefit to QB Payments is that it comes fully integrated into the QBO software - no mapping required. This is, by far, the safest way to cost-effectively keep your invoicing accurate with the most automation - best of both worlds.
Full disclosure, do receive a tiny commission from credit card processing if you use my referral link. It’s a fraction of percent; an immaterial amount since I coach everyone to use ACH, which leads me to my next point..
Here is the advice I give all our clients:
Incentivize your customers to pay you with ACH at no additional charge
-which costs you NO MORE than $10, whether you’re processing $1k or $50k -
OR
pass the 3% through to them as a convenience fee if they choose to pay with their credit card.
*If you use my referral link above to receive that special accountant rate*6/2025 Update: Stripe is the currently the cheapest ACH option, capping at $5 regardless of sale amount
Implement This Payment Policy:
People are CRAZY about credit card rewards - myself included. If you give your clients the option to pay with their credit cards at no extra cost, they will choose that option every time. But card companies are paying these rewards with the money from swipe fees that you are paying, and 3% is an enormous hit to your income. Some argue that it’s simply a cost of doing business these days; in some scenarios and industries, I absolutely agree. But, if you’re a service based, subscription or membership model (like we are), setting your customers up with a recurring ACH draft will receive 100% compliance. In 4.5 years in business, I have had exactly ZERO people push back on this issue and
it has saved me TENS OF THOUSANDS OF DOLLARS at this point - no hyperbole. This process works flawlessly for most service-based businesses. And even if you’re in an industry where accepting credit cards is “required,” it is increasingly common to pass the cost of payment processing directly through to your customer.
Gas stations do it, so can you!
Still have questions?
I’m not surprised if I didn’t touch on a specific quirk that relates to your business’s needs. There are so many variables in play here and I left a lot out. But your friendly neighborhood bookkeeper is always standing by to answer your questions!
IQBK Client Highlight
Trish, CEO and Co-Founder of GoBeyond SEO since its inception in 2009, brings a wealth of expertise in web design and digital marketing services. Her distinguished career, including tenure with CBS, underscores her commitment to excellence in the industry. Trish's insights have graced the pages of Marketing Profs, CNN, Inc, and Forbes, solidifying her reputation as a thought leader. Based in Charlotte, she finds balance between her professional endeavors and family life with her husband and two children.
Trish is adept in the ever-evolving sphere of digital marketing, thriving with each new iteration of most effective marketing strategies for the last 15 years. She’s quick witted, learning Spanish (conmigo) and has great stories from her days as a poker dealer in Reno, long before GoBeyond.
Check her out on her website here
LinkedIn - https://www.linkedin.com/in/trishsaemann/
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