Features of AR Automation

accounts receivable automation

Do you know the advantages of accounts receivable automation? Conventionally, a bank lockbox has been used by company Accounts Receivable departments to increase expediency.

Lockboxes have been around for many years and a lot of the traditional bank lockbox's lifespan has been utilized for capturing payment data associated with payments made by check. Mainstream offered this amenity to improve effectiveness and flow of company transactions simplifying the accounts receivables collection method.

Customers generally use the bank lockbox to receive check payments in one consistent location.

Bank lockboxes are purposefully placed in a central location to reduce mail delivery time, which also helps with lowering the business’ Days Sales Outstanding (DSO). Banks receive the paper check, process it along with the remittance data and send the information back to their customer. Because banks are processing checks and remittance this decreases the clients A/R workforce and increases their productivity. The cost of the bank lockbox is typically a monthly cost along with a per line remittance data processing cost. To process a large number of checks over time can be costly with a lockbox.

Today, we see a huge shift with Accounts Payable Departments paying electronically. This change to ePayments has revolutionized the FinTech industry with {solutions| designed with the goal of decreasing business costs of processing incoming payments.

Drawbacks of a Traditional Bank Lockbox



The lockbox is usually relatively expensive . Banks typicallyearn a monthly rate in addition to a per line rate associated withprocessing payment remittance detail . here

Lockboxes can include security issues . The standard bank lockbox still requires a decent level of manual re-keying data . With the majority of manual data entry attendance being entry level-administrative workers who are a novice to the bank or an outsourced contractor . The details from the lockbox can provide all essential components to make a fraudulent check .

Lockboxes don’t tie into your accounting program . Bank lockboxes process your payments and remittance data and thensend you the information . Your organization still must key in that information into your ERP to clear the cash .

Standard Bank Lockboxes Are Causing issues for your Customers' AP Department . Organizations are modernizing their AP Department to eradicate manual task and opting to pay their clients electronically via ACH , Credit Card or vCard . These desired methods of ePayment are producing an increase in email remittance . FinTech solution businesses have bridged the gap to servethose firms in read more an economical scalable option for automating Accounts Receivable .

Features of a FinTech Lockbox
Reduced Cost


The major objective of the FinTech Lockbox will be to lowercost per transaction and supply an Accounts Receivable automation program to alloworganizations click here to QUICKLY clear cash and facilitate use of your working capital .

Simple payment trail
It is simple to track incoming ePayments from one location. Instead of flipping through remittance emails or heading to the vendor portal to download payment information . The AR Lockbox provides you with one place to hold ALL your incoming electronic payments made for faster cash application .
Gets rid of mail float
Mail float is a term for the time required for a check to travel from the payer to the payee through the postal service . With the rise in B2B payments electronically , mail float is rapidly turning into a productof the past . The increase in electronic payments choosing FinTech Lockboxes with a primary focus on the price reduction and speed in which you clear cash and apply it to your working capital .


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