What Is A Smart Franking Machine?

A smart franking machine is a franking machine that does more than print postage: it identifies different types of Royal Mail service to work out whether VAT applies, records your postage spend so you can reclaim VAT, and franks mail in improved blue ink. In short, it automates the admin around franking while helping you cut postage costs and stay compliant.

When researching franking machines, or browsing our website, you may have seen the words Smart, Smart Franking or Smart Franking Machine. We have put this guide together to help you understand what a smart franking machine is and how it can be of use to you.

A standard franking machine simply franks mail items in traditional red ink. A smart franking machine does much more. It can identify different types of mail to work out if VAT is applicable, and it franks mail in improved blue ink, to name just two benefits. Keep reading to find out how this works.

What can a smart franking machine do?

Reclaim and calculate VAT

If you use any Royal Mail service that is liable to VAT, a smart franking machine is required.

Smart franking machines let users frank mail at a price that is VAT inclusive while keeping an up to date record of your expenditure. The records can be used to generate a VAT invoice, allowing you to reclaim paid VAT, which saves your accounting department time.

Reduce friction and human error

No more time is needed to collect receipts for any paid VAT, as the smart franking machine automatically records this data for you. All this information is stored within the franking machine, so there is no human error to worry about.

Monitor expenditure

As mentioned above, a smart franking machine monitors your mail expenditure every time the machine is used. Your business can view this, which is useful for print and post audits. If you want to know which mail services are costing you more, the franking machine can tell you.

Cost centres can also be set up to separate expenditure by service used or by department within your business. This way you can better monitor where your franking machine is costing you the most.

What are the other benefits of smart franking machines?

As well as the above, a smart franking machine does much more that can benefit your business.

Frank using Mailmark

A lot of smart franking machines also come with the latest Mailmark franking technology. This lets users take advantage of Royal Mail’s cheapest franking service and tariff. Find out more about Mailmark franking here.

Automatically update your postage tariff

Smart franking machines automatically update your postage tariff so you do not have to worry about it. Providing the machine is connected over a secure Ethernet connection, it will update as and when necessary.

Your accounts department will thank you

Chasing invoices and submitting a VAT claim is a laborious and time consuming job. Without the correct data, your accounts department cannot get back what they are owed. Smart franking machines make life easier, as this information is provided to you by the franking machine at the touch of a few buttons.

Get a smart franking machine today

If you are thinking of adding a smart franking machine to your business, or upgrading from a standard franking machine, Mailcoms can help.

Mailcoms is one of the Royal Mail’s Authorised Independent Inspectors and Maintainers of franking machines, and as such we can provide you with a smart franking machine to suit your needs. Whether you want to buy or rent a franking machine, or just want some advice on the decision, we are happy to help.

A smart franking machine can help massively when sending your mail. If you are interested in getting a franking machine or upgrading to a smart franking machine with even lower prices available, then please view our franking machine page here or call us today on 01543 572 776.

FAQs

What is the difference between a standard and a smart franking machine? A standard franking machine just prints postage in red ink. A smart franking machine identifies VAT-liable services, keeps records for VAT reclaim, franks in blue ink and often supports Mailmark for cheaper postage.

Do I need a smart franking machine to reclaim VAT on postage? Yes. If you use Royal Mail services that are liable to VAT, a smart franking machine is required to frank at VAT-inclusive prices and record the data you need to reclaim VAT.

Does a smart franking machine update postage rates automatically? Yes. Provided it is connected over a secure Ethernet connection, a smart franking machine automatically updates your postage tariff when needed.