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Do you make copies of checks for every incoming customer payment?

This may come in handy when trying to get financing against a contract with a customer who has questionable creditworthiness. By being able to show tracking that the customer pays their bills on a regular timely basis it will increase the likelihood that you will be able to borrow more than the credit rating public information is providing.

Answers

Topic Expert
Keith Perry
Title: Consulting CFO and Business Operations A..
Company: Growth Accelerator
(Consulting CFO and Business Operations Advisor, Growth Accelerator) |

Gary,

Neat idea. Do you think that it is good enough that my banks (chase, BOA, Wells, etc) record copies?

I used to do the "staple order to invoice to check", but internationally this is meaningless (literally), and I've gone virtual on everything...so I've figured the bank image is as good as me DMSing a copy.

Your thoughts?

KP

Gary Honig
Title: President
Company: Creative Capital Associates Factoring Co..
LinkedIn Profile
(President, Creative Capital Associates Factoring Company) |

Some banks don't necessarily make copies of deposits as much as they do copies of your out going checks. By scanning your incoming payment checks you can readily access them without needing to ask for copies from your bank. Which saves time and possibly fees.

In that commercial credit reports are not an exact science, there can be significant discrepancies between what an agency considers a recommended credit limit and the reality of payments being made by a customer.

Since the alternative to asking any lender for a higher credit limit on a customer is asking that customer to submit their current financial statements, this method of evidence of payment has a much lower threshold.

Lyle Newkirk
Title: CFO
Company: Corrigo Incorporated
(CFO, Corrigo Incorporated) |

You should look at using a lockbox to save clerical time, improve internal control and because you get an image of every check.

Tim Mann
Title: Senior Vice President - Market Director
Company: The Bank of Tampa
(Senior Vice President - Market Director, The Bank of Tampa) |

Companies using Remote Deposit Capture to make their check deposits directly from their office online will be able to see the individual check deposited and have the image stored online for future use in the manner requested.

Maureen Torres
Title: Director, Gift Processing
Company: United Way of the Bay Area
LinkedIn Profile
(Director, Gift Processing, United Way of the Bay Area) |

As Tim mentions, using remote deposits allowed us to streamline our process by using the image saved from the deposit record as our backup as needed. It has been very useful benefit. Prior to using remote deposits, we did photocopy checks for audit backup.

Julie Freer
Title: Controller
Company: Ascentis
(Controller, Ascentis) |

Ascentis uses remote deposit and we file the pdf deposit with images for audit purposes. We have also went paperless for our AP process with Bill.com who recently added an AR feature. Bill.com is easy to implement and use and is very cost effective for both small and large companies.

Bonnie McCoy
Title: CFO
Company: WhipTek, Inc.
(CFO, WhipTek, Inc.) |

Funny you should ask. I grew up old school and still staple a copy of the check to my invoice. Just recently, I noticed an invoice in one of my customer's files did not have a check attached. 2 months ago I generated an estimate for my customer, they approved the estimate, I ordered the product and it was delivered to their site but, I never converted the estimate into an invoice. Once I generated and emailed the invoice they cut me a check 3 days later; obviously they had been waiting!

(Agent, JKS Solutions, Inc.) |

Only in America. Europe and most of the world no longer uses paper checks. So how do they cope?

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