Tag: Virtual accounts

Virtual account allows businesses to initiate seamless financial transactions and maintain track records. Various large, medium, and small-scale businesses are shifting towards virtual accounts as they are more convenient and easier to monitor. These accounts are highly advantageous compared to traditional bank accounts and boost business transactions providing a hassle-free banking experience.

Maximum organizations tend to have multiple bank accounts for different purposes, such as payroll distribution, vendor payments, reimbursements, client-specific accounts, etc. Manual handling of these accounts through traditional banks makes the process more confusing and time taking, often resulting in multiple discrepancies during the auditing. Virtual account bridges all these gaps with its numerous features. Let us learn what is virtual banking account and how it can help your business.

What is Virtual Banking Account?

A virtual bank account is a type of financial account that allows you to conduct financial transactions and manage your money online without needing a physical bank branch or chequebook. These virtual accounts are like sub-ledgers that are linked to a primary account. You can create multiple accounts for different business purposes such as receiving and making payments, managing cash flow, and tracking expenses. All the information will be archived at one source. These accounts have their own unique number linked to the primary bank account. Now that you are aware of what is a virtual banking account, here are its benefits:

1. Convenience: Virtual accounts are entirely online, which means you can manage your finances and make transactions from anywhere with an internet connection. It can be useful for businesses that do not have a physical location or that have employees working remotely.

2. Lower costs: Virtual banking accounts often have lower fees than traditional bank accounts. Reason being, they do not have the overhead costs associated with maintaining physical branches.

3. Increased security: Virtual accounts have strong security measures to protect against fraud and unauthorized access. This can give you peace of mind and help protect your business’s financial information.

4. Flexibility: Virtual banking accounts offer a range of features and options, such as the ability to accept and make payments online, manage expenses, and track employee spending. This can help you streamline your financial processes and make managing your business’s cash flow easier.

5. Easy integration: Many virtual accounts can be easily integrated with other financial tools and software, such as accounting programs or invoicing platforms. This can make tracking and managing your business’s financial data easier.

How Can You Make More Profit with the Presence of Virtual Accounts?

Virtual accounts play a pivotal role when it comes to making profits. Your bank statement will always be up to date without visiting the bank, it will help your company maintain relations with additional sources, such as suppliers, and you can easily find whether you are making more profit or losing money and from which area. There are immense ways a business can make a profit with the presence of virtual accounts, and some of them are:

• Virtual banking accounts can help businesses reduce costs by eliminating the need for physical checks, bank visits, and other traditional banking services. This can save the business money on bank fees, printing costs, and other expenses.

• It can also increase efficiency by automating certain financial processes, such as payment collection and disbursement. This can free up time and resources to be better spent on other business areas.

• Virtual banking accounts can enable businesses to accept various payment methods, such as electronic and mobile payments. This makes it easier for customers to pay, potentially increasing sales and revenue.

• Virtual accounts can help businesses improve their cash flow by automating financial processes and streamlining payments. This can allow the business to invest more in growth and expansion, potentially increasing profits.

It is important to note that virtual accounts alone may not necessarily increase profits for a business. However, when used effectively as part of a broader financial strategy, they can be a powerful tool.

What Can a Business Achieve with Virtual Accounts?

Any business, be it small-scale, medium-scale, or large-scale, can achieve numerous things with virtual accounts. The biggest benefit is the possibility of expanding internationally and tapping new markets by easily accepting payments from clients or consumers from different countries. From the expansion point of view, payments often create the biggest hurdle, and these virtual accounts are the best measure to bridge the gap.

Explore Virtual Account Management Solutions With EnKash

With the immense benefits mentioned above, creating virtual accounts for your business is about time. Reduce manual efforts and increase your staff productivity by just opening a virtual account with EnKash. EnKash is a spend management platform offering businesses virtual account management solutions. With EnKash, you will get the flexibility to structure all the complex account hierarchies and enable a self-service orientation. From collection and disbursement to reconciliation, you can depend on EnKash to help streamline your financial requirements with the services provided. Explore our website for more information and solutions on virtual accounts!

Whenever a business idea is conceived, one of the main short-term goals is to gain more consumers. That is how a business grows- by garnering more consumers, stakeholders, customers, and employees.

When a strong growth strategy is charted, finances are always considered. And so, the applicability of cash flow statements and multiple bank accounts takes place.

A business depends heavily on cash flow and working capital. No matter how much your company is valued at, if your working capital is not enabling you to make purchases and payments on time, your business is not doing as well as you thought it is; and sooner or later your business is likely to run out of cash.

To maintain a healthy cash flow that fuels your working capital steadily, business owners tend to diversify their expenses. This diversification is based on departments, types of purchases, types of expenses, and other factors as deemed fit by the management.

Sometimes, to create different finance funnels for different kinds of expenses, companies tend to operate on multiple bank accounts. Some businesses are also spread across the country with multiple branches. Such businesses tend to have different bank accounts for each branch.

While it may seem like a good idea initially, there are multiple issues associated with a business having multiple bank accounts. Let’s understand in depth why having multiple bank accounts for your business does more harm than good.

Why A Business Must Not Have Multiple Bank Accounts?

Less Secure

The financial security of your business is compromised upon having multiple bank accounts because you have decentralized control over extra spending.

If a business has a separate bank account for individual branches, chances are that the branch’s finance team may end up overspending which will only be brought to light during regular audits. Such a decentralized nature of spending can be harmful to your business’s financial health.

Low Visibility

Without a centralized viewpoint of business finances, it is impossible to get full information about payables and receivables. This can further impact the decisions regarding upcoming business expenses that are to be made keeping in mind the available working capital.

Low visibility in the financial chain is a deadly side effect of having multiple bank accounts. To manage all, you need to understand the advantages of a cash flow statement and learn the applicability of a cash flow statement.

Time Consuming

Multiple bank accounts mean multiple approvals. It is a time-consuming process for everyone involved. If a business doesn’t have decentralized spending liberty, it can act as a barrier to taking instant decisions regarding purchases.

Reconciliation Woes

Regular Bookkeeping is an essential part of maintaining a healthy financial strategy. When businesses have multiple bank accounts, it can get cumbersome to reconcile the AR and AP of all accounts and tally them to get the final amount.

Getting a cash flow statement for all bank accounts can take days. It is also subject to manual mistakes, which can then lengthen the entire process of redoing the work.

What’s the smart solution to track business expenses and investments?

To provide an easy solution for for all the above-mentioned hassles,there are many FinTech platforms available in the market that offer a one-stop solution for all your business finance issues.

These digital platforms are automated to track the AR and AP, simplify spend management, and incorporate digital upgrades to legacy methods of corporate expenses.EnKash is one such platform that provides a digital expense platform for all your business expenses.

Not just you will get the advantages of cash flow statement, EnKash has also essentially resolved the issue of multiple bank accounts with its powerful products – corporate cards. It is loaded with lucrative rewards and benefits like fuel surcharge on credit cards, cashback on early payments, and more.

Benefits of EnKash Cash Flow Application and Corporate Cards

With EnKash corporate cards, you can route all your expenses through these cards. Each branch can be given a separate card that gives them the liberty of spending without worrying about approvals. These business expense cards are issued by the head financial team so that it is easy to maintain compliance and keep track of spending throughout multiple bank accounts.

The EnKash cards are linked to your Accounts ERP system so that you can track the expenses in real-time and monitor where your money goes. You can also further decentralize the spending ability by providing each department with a card of its own.

For example:

• The marketing division can have its expense card for marketing and advertising purchases.
• The purchasing team can be given their card for all business-related purchases.
• Sales employees who are generally on the field can be provided with such EnKash corporate expense cards. So that, you can save time by eliminating the entire time-consuming reimbursement process.

EnKash also offers:

• Travel And Entertainment Cards
• Meal Cards
• Fuel Cards
• Forex Cards
• Gift Cards
• Payroll Cards
• E-Commerce Seller Cards
• EMI Cards.

See the team’s inspiration behind India’s best B2B payment solutions.

This huge variety of cards can enrich your corporate expense portfolio and turn your business into a smart business. Also, you can get a fuel surcharge on credit card and other amazing discounts while releasing the payments to any services or essentials.

You can also further empower your employees by providing them with virtual cards. These cards are digital and can be used only for expenses done via a digital platform. These are one-off cards that can be used to pay for on-the-go one-time expenses.

Virtual cards can be customized according to maximum spend capacity, a number of swipes, authorized merchants, and many more nuances that can enable fraud protection and add a layer of security to your transactions.

EnKash Virtual Cards are auto-destroyed after their use making them immune to hacker attacks. Commercial cards allow centralized control of expenses while providing decentralized spending liberty.

In this way, your business does not need to have multiple bank accounts for various purposes. You can provide each team, department, and branch with their own set of cards so they can spend smartly.

EnKash has substantially unlocked new possibilities in the corporate expense ecosphere by introducing such smart and intuitive tools that empower you to make smarter business decisions.