What are virtual accounts & why should your business have one
A small business owner faces many challenges while keeping track of the payments for their business. One of the major challenges is when it comes to reconciliation. Most business owners still do manual reconciliation of transactions by matching the transaction ID.
While you manually track the payments, it is hard to figure out who has paid and who defaulted. Manual reconciliation is not only time-consuming but there are also chances of human errors. This is why you need Open’s virtual accounts. It is an online bank account that you can use to collect payments, without visiting a physical bank.
Curious? Let’s know more about Open’s virtual accounts and how they can help you track your payments.
Understanding virtual accounts
Open’s virtual account can be opened by filling up a few basic details like your customers’ name, mobile number, and email address. Likewise, you can open different virtual accounts for different customers.
Now, your customers can make payments to this virtual account. And since each virtual account is mapped to a specific customer, it will help you in auto-reconciliation without any need for human intervention. Here you can identify the payee by looking at their respective virtual account.
How do virtual accounts help businesses?
Virtual accounts help you manage your business’ DSO (Days Sales Outstanding).
Days Sales Outstanding (DSO) is an estimate of the number of days it takes a company or organization to collect its outstanding accounts receivable — in the most simple terms, it’s a measure of how long it takes your customers to pay an invoice.
DSO increases when the payment reconciliation & bookkeeping exceeds the deadline. A high DSO has a tremendous impact on cash flow and revenue, prohibiting the growth of the business.
Virtual accounts will help you in automatic payment reconciliation and speeds up the bookkeeping process, thereby decreasing your DSO.
Any virtual account number assigned can be easily tracked from Open’s dashboard. You can also create as many virtual accounts for your business and assign them to your customers. Customers can pay via any payment mode like UPI, Cards, Net banking, or digital wallets.
With Open’s virtual account, you will also have access to their banking, expense management, and accounting suite
How to Open a Virtual Account With Open?
You can open a virtual account in just a few minutes with Open. Here are the steps required to open a virtual bank account with Open -
- Log in or Sign up on Open
- Create a virtual account from the dashboard
- Complete the KYC process to activate virtual accounts
- Start collecting payments through the virtual accounts
Getting control of your cash flow
Open’s virtual accounts will help you with proper cash management by automating the payment reconciliation. They’ll save you plenty of time that can be utilized for your primary business objectives. What are you waiting for? Sign up on Open, create your virtual accounts and get control of your cash flow right away!
