If your business accepts a large volume of check payments, you might consider lockbox banking. Also called remittance processing, lockbox banking can help make check processing more secure, accurate, and timely. When you use a lockbox services provider, checks made out to your business are mailed directly to a secure P.O. box where they are collected, scanned, and deposited into your designated bank account. A report is then typically generated for you containing all the transaction details. These reports can often be digitally integrated into your accounting system as well.
Here are some of the potential benefits of using a lockbox banking service for your business:
1. Improved Staff Productivity. If you process checks in-house, someone on your team must manually do it. That means opening mail, making deposits (either in-person or remotely) and entering the payments into an accounting system. With a tight labor market and employees at a premium, many businesses will not find this to be an effective use of their employees’ time. Lockbox services can help free up your staff for more valuable work.
2. Improved Cash Flow. When someone writes your business a check, you want the funds to be available as quickly as possible. When checks are delivered to a lockbox P.O. box, they arrive more expeditiously than if they have to be delivered to a street address by a mail carrier. Once they arrive at the box, they get scanned, deposited and recorded immediately. There’s no faster way to turn a check into available funds for your business.
3. Stronger Security. With professional remittance processing, checks are accumulated safely in a secure P.O. box. They don’t go through a mailroom or get distributed to their destination by an employee. There’s also no chance that they’ll get lost on a desk or office drawer or sit around until someone gets around to depositing them. Of all payment methods, checks are the most susceptible to theft, fraud, and other mishaps. With lockbox processing, you can rest assured that every check is safely and securely deposited.
4. Higher Reliability and Accuracy. With a lockbox service, every payment is accurately reported as the check is deposited. You receive notice of the deposit transaction details at an expected and consistent time every day. If employees record and deposit your checks manually, your business is more likely to have discrepancies or errors with payment recording. Employees who handle checks may also have other duties that can cause delays with depositing and reporting. When check deposits are automated with a lockbox process, the transaction data can be electronically integrated into your business accounting system, saving time and ensuring accuracy. Check images can also be retained to solidify your documentation.
If your Massachusetts or Rhode Island business is interested in streamlining its receivables processing and eliminating the time and work involved with processing checks in-house, we can help! BankFive offers secure, convenient lockbox services through our trusted partner. Contact us today to learn more about lockbox, and other convenient merchant services and payment solutions for your business.