In the video, I walk you right through setting up a new person to pay in QuickBooks Online and how to actually pay them electronically. The first time is the most difficult. After that first time, paying folks electronically quicker and easier and cheaper than cutting a check. After you enter the Bills, go to +New and then Pay Bills. On the top left there is a little switch to go to “Online payment mode.” You can toggle that switch to pay bills electronically or by check.
In the rest of this post, I’m just going to give you my reasons why I would like to pay all my bills electronically.
#1 – The Price is Right
What does it cost to pay someone with a check? I like to print my checks through QuickBooks. The cost of those checks run from 25¢ to 50¢ per check. A windowed envelope costs another 25¢. A stamp costs another 66¢. We are up to $1.16 to $1.41 per check you put in the mail. Even if you hand deliver checks, it can still cost 50¢ to 75¢.
The cost for paying checks electronically…0¢. With QuickBooks Online, if the person you pay doesn’t share their bank account info, it’ll cut them a check. The fee for that is $1.50…which is just a little bit more than the actual cost. I’m debating not even buying check stock and envelopes.
#2 – Set it and forget it
If you pay someone by check, and you want that payment to arrive on a specific date, what do you have to do? You have to print the check, estimate how many days it will take the US Postal Service to deliver that check, and then put the check in the mail early enough to make this happen.
If you pay electronically, you click on the day you want the money to arrive, and then you’re done.
#3 – Keeping people in the loop
Sometimes I cut a check that someone is really depending on and looking forward to it. I’ll call or email that person when the check is sent. They may contact me then when the check is received.
When you pay folks electronically through QuickBooks Online, an email goes to them and you when the payment is scheduled. You get an email when the payment is sent. They get an email when the payment arrives. That’s pretty slick!
#4 – More secure than mailing a check
Although it’s rare, there are people that scout out mailboxes looking for checks in the mail. They can wash the checks and reuse them. Also, all the info they need to pull money from your church bank account is on that check so they can just take a picture of the check and use that info later. Checks sometimes get lost in the mail. Probably the most common problem is that the person receiving it loses the check.
For electronic payments, your church’s bank info is encrypted so that usually only the last four digits can be seen. It is possible that the person you’re paying gives you the wrong bank account information which would be the equivalent of “lost in the mail. The person receiving the payment will never lose that payment.
- Direct Deposit Form: https://jctaccounting.com/wp-content/uploads/2023/11/Direct-deposit-authorization-form.pdf
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