What is Lockbox?

One of the banking services that businesses can consider to be useful is Lockbox. Basically, the blocking box is simply a mailbox that your bank introduces for your business and that the bank will control. You will get to address that will allow your customers to send payment for all invoices issued by your organization directly to the locked box. Your bank will open all correspondence, store checks on your accounts, and give you an electronic approach that allows you to see your daily activity. In short, your bank is becoming a means of collecting receivables and inserting them in your operating, wage or other specified business account.

There are several benefits to secure a lock for your business. One of the most important is safety. In general, blocking boxes are protected beyond the usual safety measures associated with a post office box. When the payment reaches your lock, the chance of the falling it falls into the wrong ruLook is just about zero. This can give you and your customer base a sense of comfort.

Second, LockBox procedure can facilitate your payment to your accounting system. Many banks are able to provide details of saved payments containing pictures of checks and any other documents that come with check. The daily receipt dose can often be downloaded as PDF and used for manual entry into your system. This method will save your accounting team before you have to open the mail and sort the checks from entering the data. It also eliminates the need to prepare a bank deposit.

However, you can be able to save even more time, depending on the type of accounting software you use. Many banks can provide a defined message that can be imported directly into some accounting software systems. If you are lucky to be lucky with compatible software then the task of publishingPayments can take a few moments, even if the list of payments reaches hundreds.

The third advantage of LockBox is that you have the history of backup of your claims. If something significant happens to your software accounting system and you lose part or all data, LockBox's history messages can help you start the reconstruction process. This means that you can update your customer accounts quickly, and also start reconstructing your income and reporting of the cost of the month according to the month.

While LockBox does not perform any feature that your accounting team could not do for you, the benefits of stored time, sources of backup information and improved security make LockBox a very attractive option. Take a look at your bank today and see what they offer in the way of Lockbox.