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Why Make the Switch to Electronic Fund Transfer within Microsoft Dynamics GP

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Why make the switch? Because it’s about saving time. There is a definite gain in efficiency when you choose to start using the Electric Fund Transfer (EFT) rather than printing checks. You get to save time by no longer having to create the check batches, match them to the vendor’s invoice, ensure that you have a signing authority available when you need the checks signed (or rush through the process before they leave for vacation!), separate stub from vendor stub and check, and then finally mail them out.

If you are considering making the switch to Electronic Fund Transfer (EFT) to pay your vendors, here are some things you might want to think about:

  • Security around an EFT process versus check batch process: This is important because the payment information is entered directly into Dynamics GP. Since this payment information is sensitive banking information, it is crucial that it remains password-protected  and that the proper controls are put into place to ensure that the person entering the information is not the same person who is completing the transfer.
  • Cashflow: The difference between a regular check batch and an EFT batch is that with an EFT batch, your bank account is hit all at once for all the payments. Whereas with a check batch, the process is such that the payment period is stretched over a longer period of time.
  • Time to set up the process: You need to be sure to put the right processes in place to get this project up and running — it does not happen overnight. Gathering and entering all the necessary information takes time and internal effort.

Yes, this process may take time to implement, but in the end, the benefits of having this system in place far outweigh the setup time. With this system in place, you don’t have to worry about:

  • Fraudulent copies of your checks
  • Keeping track of outstanding checks
  • Ensuring that the signing authority is available when you need to pay your vendors.

This process becomes especially beneficial if you primarily work with sub-contractors and freelancers. It will help attract the best vendors and freelancers as your payment terms will become even more advantageous. They will no longer have to wait for the check or go to the bank to cash it.

You can further automate this process with a web-based timesheet where sub-contractors can enter their billable time. Once this timesheet is transferred to the project accounting solution, it will automatically be transferred to payables where the time will be accounted for and then invoiced. At this point, the sub-contractors may retrieve their invoices throughout the timesheet application and print it for their accounting and tax purposes.

The project accounting system will also automatically affect your work in progress and revenues for future billing to your customers.  Integrating and automating this process this will reduce the amount of work for your accounting team as this will help manage the high volume of invoices. By linking these processes you will in turn decrease the number of possible errors relating to the hourly rate, number of hours worked for a particular period, tax rates, and other standard calculation errors.

Learn more about JOVACO Project Suite and this project accounting solution by contacting us at Also read idea #20 on how Microsoft Dynamics GP is Freelance Friendly in the white paper 25 Brilliant Ideas to Outsmart Your Competition with Microsoft Dynamics ERP.

By, JOVACO Solutions, a project accounting specialist,

One Response to “Why Make the Switch to Electronic Fund Transfer within Microsoft Dynamics GP”

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