Electronic Funds Transfer (EFT) is a process of transferring money from one bank account to another through a computer network or the Internet, instead of using traditional methods such as credit cards, cash, or checks. Using EFT in the financial management of businesses saves time and reduces the costs associated with currency transactions, such as transaction fees and processing fees.

 

Instead of having to print and issue paper payslips and have to do cash-related transactions, the company can transfer paychecks directly to employees' bank accounts through EFT. This helps to reduce the risks associated with losing cash and saves time and money for both the company and its employees.