MYOB said the new functionality, called MYOB Direct Debit, is expected to further reduce payment times for invoices, decrease the time businesses spend chasing payment, and make the whole payment process more efficient.
The company said its anonymised customer data demonstrates 75% of payment volume is of a recurring nature. On average, a business receives six repeat payments per year from the same customer, for businesses including gardeners, cleaners, bookkeepers and gyms.
The improved MYOB invoicing workflow allows businesses to request payment of an invoice through a built-in “pay now” button or set up a recurring direct debit. The invoice and subsequent payments are reconciled automatically to the profit and loss report, enabling a fully automated end-to-end invoicing workflow. MYOB said the “seemingly small” features would provide “a big return in time”.
“The time businesses are spending on chasing down late payments — particularly for those with recurring payment schedules — is a pressure that’s increasing for our customers,” said Andrew Baines, general manager of financial services at MYOB.
“MYOB Business Monitor shows extreme pressure caused by late payments from customers rose from 25% in January 2021 to 29% in June 2021. This is time business owners could otherwise spend on growing their business.”
Harry Linden, owner of Lakesview Accounting Solutions, a two-person business delivering bookkeeping and BAS solutions for its small business clients, has been trialling MYOB Direct Debit.
“The role of the bookkeeper is about to change. AI, automated payment generation and end-to-end streamlining free up the bookkeeper to focus on higher-value pieces of work, like consulting my business clients on strategic ways they can run and grow their business,” Mr Linden said.
“Simplified payments mean for small business owners like me, the future’s a lot more predictable. You can better plan your movements in the understanding that your cash-flow reporting will be a lot more accurate, you’re spending less time chasing people up for payments and worrying about making your own payment commitments. It gives the business control.”
Set and forget payments are now available for businesses to use in both AccountRight Live and new Essentials at a rate of 0.7% plus 25c per transaction with a $4 cap.