Integrated? What Your Firm and Clients Need to Know

Software integrations have become the new norm for businesses, revolutionizing how day-to-day operations are handled by streamlining client data, financial transactions and other critical information. They can improve efficiency, reduce human error and provide valuable insights into overall performance, especially for those managing multiple offices and/or client accounts.

However, it’s essential to understand how they integrate with other systems and software, including tax preparation, payroll and payment systems. When software isn’t regularly updated, problems are bound to arise. Businesses of all sizes should regularly evaluate their integrations, either on their own or with the help of an independent third-party consultant.

Regularly Install Updates

Keeping software up to date is vital for several reasons. First, updates often come with important security patches to protect against new and evolving cyber threats, critical when handling sensitive financial data. They can also include new features and improvements to streamline workflows, like invoicing, financial reporting or compliance measures for payments, including surcharging programs. Staying current with software allows firms to provide better client service, remain compliant with tax and regulatory changes, and optimize their operational efficiency.

If software isn’t regularly updated, firms face security risks and compatibility problems, and they may miss out on new features that could save time and money. Outdated software can also cause compliance issues as regulations evolve. If a client isn’t using the most recent version, data required when making payment transactions may not be passed along correctly, leading to costly penalties.

Carefully Review Fees

Has your client or firm recently made an update to their software and noticed changes in credit card processing fees? If so, it’s a good idea to review vendor contracts and merchant statements to ensure you’re being charged fairly and getting the most out of your system. Fees historically change three to four times a year, and every April and October they increase [interchange].

What a lot of people don't know is in every single merchant services agreement there’s one line that says, “we can change your fees with 30 days’ notice.” Most people don t know where those notices are, and their fees are going up without them realizing it.

Working with an outside consultant can help. Look for a consultant that provides monthly monitoring and will immediately go back to the processor and work to reduce those fees back where they should be.

Another factor to consider is any processor restrictions by your software provider. Though some try to push an exclusivity clause for their chosen processing partners, this relationship can be more malleable than one thinks. If a software provider says you have to use a specific processor, always ask questions. Don t just assume that the first piece of information they give you is the only option they’re going to direct you to who they want you to use.

Example: An office supply distributor believed they were locked in. They knew they were overpaying, but thought they were stuck and couldn’t change. Merchant Advocate was able to negotiate with the processor and get their fees lowered saving over $1,500 a month and keep their current integration.

Keeping software up to date is an important part of optimizing processing costs for firms and their clients. In addition, a careful review of any integrated systems to ensure they are worth the investment and running properly will ensure security, compliance and efficiency. This is crucial to avoid unnecessary costs or disruptions to operations.

Merchant Advocate is an NJCPA member benefit provider and has helped clients save more than $300 million in excess processing fees. Learn more and sign up for a free consultation at merchantadvocate.com/NJCPA.