No company can function smoothly without reconciling its accounts. For the longest time, reconciliation has been a process conducted manually that drains resources such as time and money. Even in today’s digital world, with new technologies emerging every day, numerous organizations still rely on manual reconciliation of their accounts.
On top of being time-consuming, manual reconciliation of customer accounts also has numerous problems like:
- It’s Prone to Error: When reconciling who made the payment and when, be it via any payment mode — checks, demand drafts, or bank transfers, there exists a scope for human error. It takes up additional time and funds that otherwise can be utilized for other critical business areas/projects.
- Guesswork Exists: Sometimes due to the lack of information received, there is some degree of guesswork involved in reconciling the customer payments collected. Reconciliation tends to become more complex as the company transactions increase, and the guesswork can lead to larger errors.
- Lack of Control: With no real-time visibility into transactions, the finance team also does not have much control. Having access to real-time and error-free data of customer payments, which is difficult with manual reconciliation, is paramount to keep up with the dynamic business environment.
- Inefficiency: Manually obtaining the transaction ID from the customers and matching the payments received based on the time, date, and amount are time-consuming. Doing so can lead to draining a lot of manual resources, therefore, making operations inefficient.
Automating customer payment reconciliation helps in improving business control and flow. Leveraging Paytm iCollect will help you in freeing up your company resources for other strategic tasks.
Paytm iCollect aims at replacing checks, demand drafts, and traditional bank transfers (RTGS/NEFT/IMPS) in the business collection via allowing Virtual Account Number Bank Transfers. Merchants can leverage this service of collecting payments in four simple steps:
Step 1: The merchant can use the merchant dashboard or Paytm API to generate a VAN.
Step 2: The merchant can then go ahead and allocate these VANs to the customers via email, SMS, or by attaching VANs to their invoices. The respective customers can then transfer the money in the VAN by using internet banking (NEFT/RTGS/IMPS). Customers can also deposit the payment from a physical bank counter.
Step 3: Once the money is transferred and received in the VAN, the Paytm Business Dashboard will show a successful payment.
Step 4: Lastly, Paytm will settle the money to the merchant on either a real-time basis or using the T+1/2/3 model.
Why Choose Paytm iCollect?
- NEFT, RTGS, or IMPS payments made by your customers are easy to track using VANs, Paytm Order IDs, or UTRs.
- The merchants can easily track the purpose of the customer payments with Paytm Bank VAN Transfers.
- Paytm iCollect eliminated the need for manual UTR-based reconciliations.
- The cost involved in manually handling the checks and demand drafts is eliminated due to the lesser requirement of manual resources.
- It provides a flexible settlement in T+n days (where n=>1).
It is a smart choice to leverage the current technology to use the existing company resources more efficiently, and Paytm iCollect helps you with that!