Reckon has teamed up with digital payments company PayPal to unlock payment options for SMEs.

The partnership is aimed to further strengthen Reckons accounting platform, adding to a suite of financial applications for SMEs that is normally too costly otherwise.

Invoices will now include a ‘pay now' option to accept payments via debit and credit cards including AMEX, MasterCard and Visa or a PayPal account.

"Using an Accelerated On Boarding capability, PayPal will automatically provide new Reckon One customers with a PayPal account, simplifying the set-up process and giving users the ability to take payments instantly," a company statement read.

"As a result, payments are more likely to be made immediately and PayPal is able to rapidly process the transaction, transferring funds directly back to the vendors merchant account."

Sam Allert, managing director of Reckon ANZ, says that cash flow is a major concern for small businesses.

“Setting up your own online credit card processing facility takes time, and forces companies to complete extensive steps including merchant facility approvals," says Allert.

“We see this partnership with PayPal as a very innovative step forward for Reckon One. We are able to enhance our technology to help solve a real business problem and we are able to do this so efficiently we create substantial time and cost savings in the invoicing and payments process," he adds.

Libby Roy, PayPal Australia managing director, says that Paypal is the most widely used and trusted digital wallet in the world, giving customers broad acceptance and freedom of choice.

"PayPal never closes; monitoring transactions 24/7 and we use the latest anti-fraud technology to help safeguard Australian small businesses," says Roy.

The partnership between Reckon and Paypal is only one of many strategic deals that the cloud accounting company has completed.