Bacs, if the term is unfamiliar, stands for Bankers’ Automated Clearing Services. If these words still sound like gibberish, bacs payments basically allow people with bank accounts to make and receive payments and transfers very quickly, and without paperwork. Nowadays bacs software allows employers to get payment to their employees’ bank accounts almost instantly, with the longest delay rarely lasting more than three days. Altogether, this payment method is fast, effective and safe: workers no longer need to worry so much about spending their last pennies and having nothing in reserve, as long as they are certain of when pay day will be. Clearly, this behaviour is not very responsible and probably wouldn’t be recommended by any financial adviser. However, in our current climate where pay is often low, jobs are scarce and budgets are stretched, it is often very hard to make one’s pay packet last beyond a month. Freelance workers and the self-employed might also recognise the scenario of spending one’s last pennies but feeling sure that more work will be just around the corner: there are times when we just have to keep our hopes and motivations high and not get down about the prospect of continued instability.
Established employers are increasingly in favour of employing temporary or freelance staff: they have no loyalties when it comes to freelancers; they need not issue sick pay, or indeed holiday pay. But these big businesses aren’t necessarily the evil profiteers that movements such as Occupy make them out to be. The banking crisis has hit even the largest companies hard and it is better that they continue recruiting freelancers and temporary staff than they make unalterable job cuts and only keep their fixed staff on. Also, bacs payments allow the big employers to be loyal and fair to their employees: they are often well aware that some of their staff members, particularly the young, can barely afford their rent, let alone the accessories and clothes that would allow them to fit in with their superiors.
So, as long as the employee has provided finance with all the correct banking details, the employer need not let them down or leave them in a state of hardship – bacs payments are fast and secure. It may sound like scaremongering but many under 25s will identify with this situation. For this unlucky age group, the bacs system is reassuring. And for employers, bacs software allows them to keep on top of their accounts.
Please visit http://www.bottomline.co.uk/ for further information about this topic.
http://www.bottomline.co.uk/
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