The ability to collect and cash in customer payments is critical to effective cash flow management for all companies across the board. Unfortunately, for many, the accounts receivable function is a process that can be rife with errors and labor inefficiencies due to payment volumes and resource constraints.
That’s where third-party vendors who offer remittance processing services (RPS) come to the rescue. Another buzzword to describe this offering is also known as “Lockbox Services.” In a nutshell, those providers who are reputable easily remove the complexity of check processing, the posting of payment information and the transfer of funds to your company’s coffers using proven technology and methodology. And they are able to handle this workflow in a timely and seamless manner without imposing high fees. This saves you from having to invest precious capital in expensive RPS software and hardware solutions, which would be typically needed to boost your accounts receivable efficiency.
Limited budgets and the desire to reign in fixed capital costs prevent many companies from automating their mission-critical accounts receivable function. To combat this dilemma, companies must engage leading third-party providers who can help them overcome such hurdles. According to Janet Wolford at Acclaris, a customer of RPS provider, BerkOne, “this solution allows Acclaris to focus on our core business and allowed us to reduce in house mailroom staffing by 90%”
When shopping around for the ideal provider ask if they:
- Offer Check 21 capability which eliminates physical check handling – collection and return
- Reduce manual data entry
- Receive and post payment information faster
- Reduce paper handling and storage costs by offering online image storage/retrieval of processed check payments – same day
- Automate exceptions management
- Provide accurate reconciliation of receipts
- Provide timely funds transfer
- Provide improved payment processing accuracy
- Provide reports for audit tracking
- Send electronic transaction files that interface with accounting systems
The net result can be an overall reduction in operational costs – achieved through faster and more accurate payment receipts coupled with lesser personnel hours needed to execute the workflow. That’s what makes contracting RPS through a third party vendor such a winning proposition for most companies.
For more information on how we can help automate your accounts receivable function, contact us directly.