Notes

What are Virtual Accounts?
It’s month-end, and credit card bills are smiling at us, gleefully.

가상계좌임대 to track the expenditure, get a mini heart attack, and then take a vow to do better next month. And, the sight when most of us open our wallets could be this.

Remember the time it took us to cross-check the expenses and ensure our pockets have transacted correctly?

Of course, expense tracking apps can help out when we’re talking about day-to-day chores.

But.

Ever thought about how companies or multinational corporations with thousands of daily transactions take care of this bit?

Whenever a business receives a payment, it would contain all the required information to help its accounting team to just ‘tick-mark’ the transaction, right?

Or, so we thought.

Companies are often caught in the endless loop of open invoices and guessing who made which transaction.

This:

Increases the time spent on payment reconciliation
Increases DSO or Day Sales Outstanding
Takes a significant hit on the team productivity

In other words, companies have to spend hours scanning through bank statements with a fine-toothed comb to ensure the expenses, credits, and debits all match up. This bookkeeping called payment reconciliation drains time, demands efforts, and gives rise to inaccurate records.

This snowballing further worsens when the company has to send payment reminders to clients, many of whom would have paid already, leading to an abysmal customer experience.

Is there a way out of this? Luckily for companies, be it a budding startup to a fully-fledged enterprise, virtual accounts solve the problem in a jiffy.

First things first.
What are Virtual Accounts?

I recall my first encounter with a virtual account. I passed a few inputs (name, mobile number), and a virtual bank account was created in seconds, pretty much like creating your Facebook/Instagram account. Quite amazing, although not known to many! Memories of physically visiting the bank branch and opening an account flashed across my mind. What a chore was that, after all?

How is this possible? How could I open a bank account in seconds without KYC? My curiosity crossed the zenith. As I dug further, I learned more about how virtual accounts work.

Virtual accounts are bank accounts that have no physical existence, are temporary, and transact on behalf of a real, physical account.

Also known as a shadow account, a virtual account has a unique account number that makes it easy to trace the funds coming through it and helps to identify the source or the payer.

Reconciling payments is no longer a worry; efficient and happens in real-time, saving both time and effort. But, if a virtual account can transact just like a normal account, how is it so different?
Virtual Account Vs. Physical Account

Well, I heard your wondering-hmm. Yes, you are right.

Virtual accounts function just like physical accounts. They have an account number of their own and can transact payments smoothly.

But. That’s just not it.
Read More: https://www.365pay.biz/