You may ask yourself why use direct deposit for issuing checks to my employees. There are several reasons.
The main reason a business may want to use direct deposit is obviously the one that affects them the most, cost. You no longer have to pay someone or use your own valuable time to fill in checks by hand, print them and sign them. You also will reduce the number of paper checks you have to purchase and never have to worry about an employee losing a check again. Check stubs themselves can normally be printed on plain paper and given to your employees. Banks generally charge to process direct deposits but it is almost always a far cheaper option than using paper checks.
Another reason to use direct deposit is it’s generally easier to administer. You don’t have to be in the office or even in town when the checks need to be issued, the bank will issue them at the designated date for you automatically. You also don’t have to keep paper copies of the actual check for your records. The reports usually provided with direct deposit will help aid in account reconciliation and in reducing potential errors.
Potential fraud is greatly reduced by using direct deposit. The checks don’t pass through anyone’s hands, so there is no chance of the check itself being lost or stolen. Signatures can’t be forged or amounts altered on the check.
There are benefits for your employees as well. They don’t have to wait as long, if at all, for a check to clear. The check can automatically go into more than one account or account type, making savings easier. They don’t have to spend the time going to the bank. If a check happens to have a mistake, it is often easier/quicker to get corrected if it was direct deposited. Your employees don’t have to worry about losing their check before it is cashed or anyone taking it.
Advanced Micro Solutions offers Payroll Software with free, built-in direct deposit to help meet all your payroll needs and to keep your costs to a minimum. Once you register with your bank all that is needed is for you to enter the banking information for you and your employees, their checks in the software and using the software to create an ACH file that you to provide to your bank.
We provide a free DEMO so that you can make sure that our software is a fit for your needs. Support is provided free of charge on Monday – Friday from 8 AM – 6 PM central time via email, fax, phone, and chat. We also offer extended hours in January and April, including Saturdays.