Automated payment process enables F Parkinson Ltd to save on average 25 pence per transaction 

Every week F Parkinson Ltd processes over 500 Direct Credits to employees, suppliers and sub-contractors. Underpinning this payment process is Albany Software's ALBACS from RedSky IT, one of the UK's principal IT application software companies, which has enabled the construction firm to reduce time spent processing payments from days to literally 15 minutes, whilst saving on average 25 pence per transaction. Furthermore, ALBACS leverages Public Key Infrastructure and Smart Card technology to provide the stringent security measures required by an organisation that is managing large volumes of payments on a weekly basis.

Established in 1934, F Parkinson Ltd has expanded steadily throughout the North East and North West of England, to become recognised as a leading construction company specialising in the government sector, with an annual turnover of between £30 and 35million. However, only five years ago the company was predominantly reliant on cheques, which meant that transactions took days to be processed and evaluated. With more than 500 payments to employees, suppliers and sub-contractors being made each week, there was a considerable admin burden on the finance department and speed of payment was increasingly becoming a problem. 

In order to overcome this issue, F Parkinson adopted Albany Software's ALBACS payment system supplied by RedSky IT, which automates the transaction process from submission to completion and reporting. As Frank Hull, Finance Director at F Parkinson Ltd, explains, "The speed and reliability of the ALBACS system is outstanding, enabling us to cut the time spent processing payments from days to literally around fifteen minutes. This has also meant that we have been able to phase out the use of cheques as a payment mechanism within the business, reducing the administration burden on staff considerably."

The strong relationship with RedSky IT and confidence in Albany Software's product were key factors in F Parkinson's decision to also implement ALBACS at its partner group, Hire Centres. F Parkinson's was so assured of the merits of the ALBACS system that it  moved Hire Centres straight from cheques to the automated system, a change that few companies are prepared to take because of the associated risks in customer service.

Hull explains: "Prior to ALBACS, cheques were the staple payment process at our partner firm Hire Centres, whereas now we issue less than ten cheques per month across both companies. The monetary savings associated with switching from cheques to ALBACS are clear - we have saved on average 25 pence per transaction."

Hull concludes: "The rapid pace of technological change is a major issue for all SMEs, and we need to be sure that any technology investment we are making will future-proof our business and help us sustain our growth. With ALBACS we have a payment system that is reliable, secure and very scaleable, and we have already realised a number of benefits. For example, since implementing ALBACS the number of failed transactions we have had has steadily reduced to a nominal level, and we have been able to monitor our cash flow and forecast more accurately. There is no doubt that ALBACS has already paid for itself."