In the age of online banking and digital currency, most employees expect to be paid by direct deposit. Not only does this save time standing in line at the bank, but direct deposit also offers some benefits to businesses and independent contractors in every industry. Below are just a few advantages of switching to direct deposit.

Why Every Business Should Adopt Direct Deposit

1. Reduce the Risk of Fraud

Paper checks can get lost in the mail or stolen, exposing your account number to criminals who may use them to create forgeries. A single lost check can cause thousands of dollars in losses before you even notice. 

With direct deposit, no one has access to your account number, not even your employees. This makes electronic banking more secure and helps prevent theft and fraud.

2. Have Timely Payments

Distributing paychecks at work can be inconvenient for both you and your employees. Some of your workers may have to come in on their day off to get their checks, and you might have to make other arrangements if you’re going to be on vacation. Direct deposit allows you to pay your employees on time, even if you’re thousands of miles away from your bank.

3. Save Money

Printing checks consumes paper and electricity, potentially adding hundreds of dollars to your office expenses every year. Depending on the size of your company, preparing the checks could also take several hours every week. Switching to direct deposit can dramatically reduce your expenses and free up your bookkeeping team to focus on other, pressing tasks.

4. Improve Employee Satisfaction

Online banking tools and apps have made paper checks obsolete, and many people never use them at all. Adopting direct deposit will give your employees the convenience they expect and payment methods that fit into their daily lives. It also shows that you’re a forward-thinking company that keeps up with modern technology.

For over 80 years, First State Bank has helped businesses throughout Russellville, AR, manage their finances with cutting-edge tools and personal service. Their easy-to-use cash management services make it easy to switch to direct deposit without the cost of using a third-party payroll company. Visit their website for more on their wide range of services, or call (479) 498-2400 to find out how they can help your business succeed.