Tweet

Streamline Your Accounting: Remote Deposit Capture

Written by: Scott Gregory

Article Overview: Going to the bank to make your business deposits? Save time and get on to more important business tasks using this new technology...

Streamline Your Accounting: Remote Deposit Capture

C'mon, be honest... Hauling yourself to the bank to make your deposit every day is a pain in the shorts, isn't it?

As long as your business takes payment by check (and not by coin or currency), you can stop making that daily trip to the bank. How could that could be?

Ask your banker about a product called Remote Deposit. It also goes by Remote Banking, Remote Office, and a host of other names, but the idea is the same. You turn your office into a remote branch of your bank (if only you could print money there too!)

Here is an overview of how Remote Deposit works:



• The bank sells (or rents) you what is called a remote capture terminal. It is a small piece of hardware that sits on your desk. You feed your checks through the terminal, and the image of the check is then stored for processing.

• You use the bank supplied software to then transmit these images securely and directly to the bank to complete your deposit.

What's in it for you?



• No longer waste countless days over the course of a year driving to and from the bank and hanging out in line to make the deposit

• Most banks provide a longer business day when using remote deposit. For example, instead of having deposits after 3pm posting to the next business day, many allow same day deposits up to 5 or 6pm the same day.

• Acceleration of your cash flow so that you can use available funds more aggressively to pay down debt and reduce interest expenses.

• Convert the time you spend on non-value added banking activities into value-added and revenue enhancing activities (i.e. chasing customers down for overdue payments, helping to get quotes and estimates out the door, etc.)

Is there a cost for Remote Deposit?

In most cases, there is a cost to purchase or rent the terminal as well as a monthly cost to maintain the remote deposit service.

Naturally, if you are an extremely small business, this concept may not be cost-effective for you. However, if your business has any steady recurring volume of checks, it may pay for itself relatively quickly. Besides, there is a cost to the way you are currently handling your bank deposits - you just don't see it leaving your checkbooks each month!

With some negotiation, you can usually find a way to lower some of these costs as well!

Related Articles
  Lead Capture Pages for Network Marketing
  Green Banks Thrive
  Profit Growth Strategy #2 For Virtual Assisants
  How You Can Improve Cash Management
  Outsourcing Accounting: Easy Accounting Outsourcing to India for Small Businesses in USA

Article Tags: bank deposits on the internet, depositing checks in quickbooks, free quickbooks tips, remote deposit capture, remote terminal



Related Forum Posts
Re: Trade Show Success Strategies - As a frequent attendee and participant in trade shows, I've found the following tips to be useful: 1) Staff in the booth must be trained to listen to the needs of the visitor, record those interests and if appropriate, commit to getting back to that person within a short time frame. Capture those leads and act on them! 2) The booth needs to be 'busy' - hustle is eye catching and generates interest 3) Homogeneity (common dress) facilitates the visitor to find someone to speak to 4) 'Freebees' need to be selectively handed out and when they are, there must be a personal conection to them (e.g. "You'd like one of our 'whatevers' - we're running a little short right now but here, please take mine")
Seek Venture Capital & Funding - Hello, Greetings from India. I am Seeking Venture Capital for Offshore Software Company Start-up. Need advise along with Business Model Sample. I have a basic outline for an offshore company. 1. Technology - like Microsoft Dot Net, Java, LAMP 2. Talent Team - Found Good Technology Developers. 3. Where I can get the leads/potential customers - Leads have been identified who are willing to move forward offshore projects. 4. I do not have resources like funding. It is a very critical factor to me Industries: Manufacturing, Real Estate, Retail, Insurance, Distribution & Logistics, Healthcare, Industry Associations and Software Product Development, Agricultural Industries and Etc. Services: Offshore Software Development Company. Offices to be located: Hyderabad, Andhra Pradesh, India and USA. Products/Services/Applications in areas like POS & Billing, Sales & Distribution, Production Planning, Material Management, Inventory Control, Plant Maintenance, Purchasing, Accounting and Logistics. Dynamic Web Programming with Database Driven Content Management Systems, Online Stores for E-Commerce, B2B Solutions, Community Portals, Website Redesign and Development, Custom ERP with Enterprise Wide Functional Modules such as Marketing, CRM, Accounting, Inventory Control, Sales & Distribution, Production Planning, Purchase & Stores, Logistics and Supply Chain. Seek your further questions and help. Thank you, Best Regards, Jayapratap.
Wearing different hats in Business - I have a business that produces beautiful custom rugs for home and business environments. Different hats that I'm wearing... Rug Fabrication - 10 [i:21cr28m8](partially outsourced to an outfit here in the US)[/i:21cr28m8] Customer Service / Sales - 8-10 Bookkeeping - 1 Marketing - 6 Website development - 5 [i:21cr28m8](mainly outsourced)[/i:21cr28m8] SEO, SEM - 6-8 Accounting - [i:21cr28m8](outsourced)[/i:21cr28m8]
Kevin's Case Study #5 - Different "hats" you wear - To help all entrepreneurs (especially aspiring new ones), I'd like to ask: 1.) What is your small business? 2.) Then list the numerous "hats" you're required to wear in order to succeed. Moreover, go on to rate each job function on a scale of "1 = generalist" to "10 = expert" and even which tasks you outsource. Perhaps this post will act as a decisive factor on whether a person should pursue a specific business idea or not. [i:exdr7mc8]For example, if I owned my own bakery, I'd create my list as follows: 1.) Professional Baker 2.) Different hats I'm required to wear: -Dessert making (8-10) -Customer service/Sales (7) - Job function is outsourced -Accounting (5) - Job function is outsourced -Marketing (4) - Job function is outsourced -etc...[/i:exdr7mc8]
the BDC - Hi Renee, the BDC is a great lender to many Canadian businesses. I've heard many horror stories from businesses that have had problems with the BDC, but I think it all depends on which account manager you deal with (that's the case with most lenders). Anyways, I have a great relationship with the BDC Toronto office, and was successful earlier this year in getting two service based companies loans under the BDC Innovation financing program ($100,000 and $150,000, both for marketing and growth initiatives). Here's an article I wrote about the BDC late last year for an Accounting Firm's newsletter: The Business Development Bank of Canada is a financial institution belonging to the Government of Canada, with the mandate: “to encourage innovation and stimulate the growth of small and medium-size Canadian companies.” The BDC usually looks for companies with a sound management team that possess solid growth potential. The BDC can provide working capital solutions to complement traditional bank financing. The BDC’s lending practices are somewhat different from the traditional chartered banks. With the BDC, borrowers receive a guaranteed term, meaning that financing cannot be recalled without due cause. As opposed to the chartered banks, where facilities are typically demand loans and can be recalled at any time. The BDC has very flexible repayment terms, including deferring principal payments, amortizing loans for up to an 8 year term, or offering seasonal and/or progressive payment options. This allows businesses to structure their cash flow accordingly. The BDC is willing to lend to companies that are more leveraged than traditional banks would consider. As well the BDC is willing to finance higher loan-to-value ratios than the chartered banks max out on. The BDC also offers subordinated debt, where they will postpone their claim to a chartered bank. Sub-debt can be very advantageous to many companies, because the BDC ties the repayment terms to the company’s cash flow projections. The pricing model can be setup as normal interest payments, royalties on sales, bonus interest based on milestones, warrants or some combination of these items. The BDC lends sub-debt to businesses based on historical cash flow, management and growth potential. The innovation financing program provides small businesses with funds to carry out marketing and/or growth plans, increase inventory, and/or develop new products. The BDC funds all types of businesses including start-ups, however will not fund any business that earns 50% or more of their profits from alcohol sales or gambling. The cost of borrowing from the BDC is generally higher than the chartered banks. The BDC’s base rate generally starts at two points above regular bank prime, and then the risk premium is applied to these rates based on each project's potential and the amount of risk involved. The BDC may not be ideal for all businesses, but as an alternative and/or complement to traditional bank financing, the BDC could be a very attractive solution.


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Tweet

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

Steps For Starting A Small Business

African Technology Development

Emotional Energy is Our Engine

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.