Small businesses to be automatically given PayPal accounts.
Small businesses using the Reckon One cloud account package will now be able to directly bill customers from their invoices using PayPal.
Along with PayPal accounts, customers will be able to pay directly from an online invoice using AMEX, MasterCard and Visa debit and credit cards.
As part of the new feature, PayPal will also automatically issue Reckon One users with a merchant account, bypassing the usual on-boarding process.
According to Reckon, the new feature will give additional payment options for small businesses that would not otherwise have access to EFTPOS payment facilities.
It says that customers are more likely to pay if they can do so instantly from an invoice. This can improve cash flow, while reducing the bookkeeping headaches associated with matching payments to invoices.
There are no additional PayPal set-up fees for Reckon One customers looking to use the new feature.
“According to ASIC, in the 2014-2015 financial year, approximately 44 percent of company failures were caused by inadequate cash flow or high cash use, so any advantage which can be gained is critical,” Reckon managing director Australia and New Zealand Sam Allert said.
“We see this partnership with PayPal as a very innovative step forward for Reckon One. We are able to enhance our technology to help solve a real business problem and we are able to do this so efficiently we create substantial time and cost savings in the invoicing and payments process.”
Thomas Paule, the chief digital officer at accounting firm Findex, told BIT imbedding a payment gateway within business software enables quick, accurate payments reducing debtor days, administration time and improving cashflow.
“Cash flow management is key to every small business. This is a great move by accounting software providers and it's where the industry need to keep heading,” Paule said.
In recent months, Reckon has forged a partnership with international payments provider OFX to offer customers better rates when dealing with foreign currencies, along with a service that allows accountants and bookkeepers to offer branded mobile apps that integrate with its software.