Control Cash Flow

Getting a Handle on Checks

Five solutions to electronify your payments

Small and middle market businesses still send more 43 percent of their vendor payments by check1, a payment method with high costs, poor tracking and propensity for fraud. Here are five ways to shift to electronic payments and better manage the checks that remain.

1. Ramp up Online Bill Pay and ACH

  • Shift payments to online bill pay and eliminate check printing while sending all payments by electronic or paper methods as appropriate.
  • Initiate ACH payments and send electronic payments directly to vendors, payroll processors and taxing agencies without the costs of issuing and reconciling checks. Add additional fraud protection with ACH Fraud Control.

2. Replace Checks with Cards

  • Consolidate billing and expense reporting with business credit cards with pre-set limits.
  •  Issue business cards that work for all categories of expenses, especially travel and entertainment, with tighter control of authorization and expense limits.
  • Use vendor-issued purchasing cards that automate high-dollar vendor payments to reduce checks, offer precise payment timing and allow simpler exception processing.

3. Use Electronic Payroll

  • Provide direct deposit of employee checks to reduce checks volume, allow employee access to stubs, W2s and 1099s, and integrate with financial software.
  •  Deposit directly to employee-issued payroll debit cards and make funds available immediately for purchases or ATM access.

4. Control Check Fraud

  • Provide details of valid checks to the bank to control which checks are paid and avoid fraud.

5. Simplify Check Reconciliation

  • Seamlessly integrate posted account transactions and balances to accounting systems for easy and automated reconciliation.
  • View archived cancelled check images so that you can quickly research check information during reconciliation and Accounts Payable issue resolution.

Get a handle on paper checks.Let your Treasury Sales Officer or Relationship Manager conduct a payments review to reduce check volume and process your payments efficiently and with less risk of fraud.

SunTrust Research, Q4 2015

This content does not constitute legal, tax, accounting, financial or investment advice. You are encouraged to consult with competent legal, tax, accounting, financial or investment professionals based on your specific circumstances. We do not make any warranties as to accuracy or completeness of this information, do not endorse any third-party companies, products, or services described here, and take no liability for your use of this information.

Related