BACs Approval Services via RA Payroll
RA Accountants LLP is proud to announce the expansion of services under our RA Payroll division
Have you heard of BACs Approval services?
As a BACs Approved Payroll Bureau, RA Payroll can save you a whole lot of stress and hassle by making electronic transfers on your behalf – to ensure your employees are paid on-time and securely.
What is BACs?
BACs stands for Bank Automated Clearing System and is a structured payment system that’s used to move money from one bank to another in the UK. As one of the UK’s favourite ways to pay staff and employees, it’s a system that’s been up and running for around 50 years, is made up of sixteen of the UKs major banks and building societies and is fast, safe and trusted.
What are the benefits?
- Time, cost and cashflow-saving aspect compared with paying staff by cash/cheque.
- Reduction in admin and reconciliation
- BACs removes the admin hassle of physically arranging payment.
- Helps us in preparing the data that will ensure your people get paid.
How do I use BACs?
There are two ways of using BACs: one is for taking money via Direct Debit and the other for paying it via Direct Credit. For paying wages, suppliers etc, you’ll use the Direct Credit system. For that, you’ll need the name of each payee’s bank, the amount to be paid, their bank account number and their sort code.
To access the system and send a payment you need to use approved software. You can buy this yourself or you can choose an approved bureau which already has a licence to access the system – such as RA Payroll.
Once the payment details are sent, the BACs system distributes the data to each bank ready for the money to be debited from your account and credited to the payees.
How long does BACs take?
Money usually takes around 3 days to work its way through the BACs system. Day 1 is when submissions are made; Day 2, the processing gets done and on Day 3 cleared payment is normally received.
Do I get reports regarding payments?
When you choose RA Payroll we’ll provide you with a report called BACs Arrangements, that shows all the payments that have been set up in the BACs system. Once the payment button has been pressed, you’ll get a report called BACs Issues, confirming that payments have been processed. You’ll get both of these delivered by your Payroll contact..
How secure is BACs?
The BACs website notes that “Unlike cash or cheques, BACs Direct Credit payments cannot be lost, stolen or delayed in the post.” BACs can be argued to be be safer than cash or cheque payment.
BACs uses SSL encryption, is password protected, constantly monitored and is only accessible via software pre-approved by BACs. Getting access to that software (and having the experience to use it effectively) if you don’t already have it is one of the big advantages of working with a BACs approved bureau like RA Payroll.
If you are interested in finding our more about our BACs service or RA Payroll services in general, please contact Syed Zaidi on email@example.com and we would be happy to arrange an exploratory discussion.