Remote deposit, ACH services can help you save time and money.For small business owners, managing the flow of money is a job that never really stops. They constantly need to keep an eye on incoming cash while paying a never-ending series of bills. Smart entrepreneurs are always looking for a way to make the process more efficient.
Many banks offer remote deposit and Automated Clearing House (ACH) services, two easy ways that business owners can speed the collection of money while reducing costs, all from the comfort of their desks.
The Benefits of Remote Deposit
To take advantage of remote deposit, a business owner simply needs a computer, a scanner and Internet service. When the business receives checks, instead of driving to the local bank branch or ATM, the checks can be scanned and sent to the bank from a secure Internet connection.
By eliminating the trip to the bank, the owner or office manager can use that time for other day-to-day duties. Deposits can be made at a time convenient for the business without the restriction of branch hours or courier pickup times. Depending on the financial institution, remote deposits can be made later in the day, long after most bank branches are closed, and still have the deposits credited on the same business day.
The remote deposit software is designed to alert the individual scanning the checks as to whether the initial information entered on the electronic deposit slip matches the dollar amount of the checks scanned.
The verification of the deposit amount can reduce the time spent making reconciliation corrections.
The deposit is then electronically transmitted to the bank over a secure Internet connection. Typically, the business will receive an email verifying that the deposit was received. Most financial institutions offer remote deposit packages that are customized for individual businesses.
For those businesses that use multiple financial institutions because of operations in several locations, remote deposit service could enable them to consolidate their deposit accounts with a single institution, potentially lowering their bank fees. By doing so, the business could also reduce courier costs and the time spent to reconcile accounts. And, if a company exports its remote-deposit data to its accounting software, it can avoid spending time on manual data entry.
Adopting ACH
Collecting and disbursing customer payments are critical parts of a business’s daily cash flow, and Automated Clearing House (ACH) services can greatly improve a company’s operations. ACH allows businesses—or individual customers—to electronically transfer funds from one account to another.
There are several reasons why ACH might make sense for a business owner. To start, the transfers can be done in large batches, potentially saving time and money. And, given the rise in consumers and businesses who prefer electronic payment methods, providing the ability to submit ACH online payments could be the deciding factor for a customer who has the choice of working with a number of companies.
In addition, by issuing ACH payments versus writing checks, businesses can reduce the potential for fraud and make it harder for criminals to breach checking accounts. Business owners may also save money and reduce errors, as well as automate payments and help their company to reconcile in a more efficient manner. For example, ACH means businesses won’t spend as much on paper checks or postage. It’s also an efficient, economical and reliable method for accepting a one-time payment or developing an ongoing system for automating recurring payments.
It may feel like a business owner can never rest, but with tools like remote deposit and ACH, there are opportunities to improve efficiency, reduce errors and more actively manage money flow.
