Struggling with orphaned checks? Deploy mobile RDC and integrated receivables

At work or home, most of us have problem spots. You know the place: The office junk drawer that defies organization. The entryway where mail, wet shoes and dog leashes comingle. The back corner of the pantry where expired foodstuffs hide.

In the financial world, it’s those pesky (but important) payments that arrive outside your normal workflow. They’re certainly not the biggest problem you face, but there’s still no good place to put them.

Fortunately, the solution for these “orphan” payments has arrived. It’s a combination of mobile Remote Deposit Capture (mRDC) for anytime, anywhere digital deposits and Integrated Receivables (IR) to incorporate payment and remittance data into your regular posting file.

It’s the perfect solution for any business receiving 200 or fewer checks each month and still physically transporting those checks to the office or bank for deposit, or for companies using mRDC as a standalone application.

Easily incorporate one-off paper checks in your standard AR process

Paper checks are one of the most common items that fall outside corporate receivables channels and into the AR equivalent of the junk drawer. Even high-volume businesses that use lockboxes still periodically encounter paper checks at locations other than the lockbox provider.

These orphaned checks can languish for days on your field agents’ desks, awaiting deposit. They get lost or delayed when technicians collect them on service calls or drivers pick then up on deliveries. They force you to manage numerous banking relationships in order to have local options for branch deposits—or assume unnecessary risk by mailing batches of checks to headquarters. They add time and hassle for the AR team. 

While the dollar amounts and volumes may be small, these one-off paper checks still create hassles. Rather than trying to persuade every customer to pay you electronically, it can be faster and simpler to incorporate all paper checks into your standard digital process. That’s just one of the values that mRDC and IR together provide.

Speed cash flow and reduce risk with mRDC and IR together

Leveraging these two innovative technologies creates several advantages. It works by creating an end-to-end digital process that spans all your check intake points, your bank and your AR system.

A combination of mRDC and IR can:

• Simplify your banking relationships. When you can deposit checks from anywhere with a smartphone application, you can choose a financial institution based on its merits, regardless of location.
• Speed cash flow. There’s no need for time-consuming trips to the bank or lockbox, or waiting for remote staff to mail checks to headquarters.

• Streamline cash application. Paper checks can post in the same data file and at the same time as your electronic receivables and lockbox transactions.

• Reduce risk. Moving from manual handling to digital transmission gives you more ways to control user access and avoid potential fraud or misuse.

• Improve customer experiences. Timely deposits accelerate credit availability for customers and inbound questions about payment status.

Hard and soft dollar savings are another valuable result. One bank estimates that processing a single business check costs from $4 to $20; processing a paper invoice between $4 to $8. Eliminating these expenses with mRDC and IR delivers measurable impact directly to the bottom line.

Cutting-edge tech powers today’s receivables solutions

Both mRDC and IR have matured significantly, making these technologies easier to adopt and more cost-effective, even for small and mid-sized companies.

Today’s mRDC options include sophisticated configurations developed exclusively for businesses. Most business mRDC tools can:

• Capture multiple checks in a single deposit session
• Include any invoices, coupons or other remittance documentation
• Produce robust data files compatible with accounting platforms like QuickBooks or ERP systems
• Allow multi-user access, dual controls and other security features

While mRDC makes it easy to capture checks from anywhere, adding IR to the equation truly automates the entire end-to-end receivables process.

With IR, there’s no need to manage a separate data file or separate cash application process for low-volume checks. Just like the name implies, an “integrated” receivables tool gathers all your AR payments into a one standardized file that’s compatible with your system of record. Sophisticated technology can even match those customer payments to open invoices.

IR lets you consolidate all types of payments, including:

• ACH transactions
• Credit and debit cards
• Wires
• Checks
• Online bill pay files
• Lockbox feeds

IR not only simplifies, speeds and automates posting, it provides a single source for business insights. Stakeholders can easily access a 360-degree view of all payment types for smarter decision-making. 

Put an end to ad hoc and inefficient check processing

Getting started is as simple as talking to your FI or a Deluxe receivables specialist about your check capture end points and your back-office accounting system. You’ll be amazed how good it feels to move your payment “odds and ends” from ad hoc processing into an organized and efficient digital workflow.