Not Just for Big Business Anymore
These lesser-known banking services can make it easier to run your company
By: Jennifer Kendel

Almost all businesses use traditional banking services like checking accounts and loans, but there’s a good chance that your bank offers an array of lesser- known services that can make running your business much easier and more convenient. These products and services are generally referred to under the broad headings of “treasury services,” “cash management,” and “electronic banking,” and although sophisticated in nature, they have evolved to the point where they are very easy to use.

Historically, these services were meant to be used by large businesses, but because of advances in technology and increased demand, many of the products available today were designed to be used by businesses of all sizes. A good example is commercial online banking. While most people are familiar with personal online banking, many are unaware that banks offer online services for businesses. Commercial online banking can provide a means for you to calculate your daily cash position, and then decrease idle balances by allowing you to transfer money between deposit accounts and investments. Control over the reconciliation process is improved, and you don’t have to spend valuable time calling your bank when you want to transfer money between accounts or banks, place a stop-payment on an item, or verify funds in your account.

Another very useful, time-saving cash management service is called account reconciliation. As the name implies, this service speeds the process of reconciling your accounts by matching the checks you’ve issued to the checks which have been presented to your bank. Account reconciliation services offered by some banks include a check fraud prevention feature whereby the checks and other debits being presented to the bank for payment are compared to a list of items that your business legitimately issued. The bank informs you of any exceptions, and you can decide whether those items should be paid or returned.

If you don’t like the hassle of storing cancelled checks, you can convert to a check-imaging system. Using this system, all of your checks are imaged, front and back, and sent to you monthly on a CD. Whether you have dozens of checks or thousands, this system will save you storage space and research time as well. You can simply load the CD for the month in question, search by account number, check number or dollar amount, and then print a copy of the check you need.

If your company receives a high volume of checks through the mail, you might be interested in a receivables management service known as a lockbox. Using this service, the payments you receive from your customers are sent directly to a mailbox, which is controlled by your bank. Most banks that offer this service have multiple mail pickups during the day and night, and on weekends and holidays, which means your receipts are processed faster and converted into usable cash more aggressively. Information regarding which of your customers made a payment, and in what amount, is captured and transmitted electronically on a daily basis to your accounts receivables system. A lockbox service will not only increase the availability of your funds, it will also help free-up time in your office for you and your staff to perform other important tasks.

Would you like to avoid having to rush to the bank each day to get your deposit in before the cutoff time? Or, do you have more than one store or office location, causing you to have multiple checking accounts? If you answered yes to either or both of those questions, you might be interested in a relatively new service offered by many banks called remote deposit service. If your business has a single location, you can use this service to deposit items received at your store or office into your checking account without having to go to the bank. If your business has multiple store or office locations, you can deposit items physically received at any of your locations into a single checking account, regardless of where your stores or offices are located, again without anyone having to visit the bank. Usually, the cutoff time for this type of deposit is several hours later than the one for deposits physically made at the bank, so in addition to the added convenience and/or elimination of the cost of maintaining multiple checking accounts, your business should enjoy improved cash flow and funds availability if this service is used.

With the fast pace of the world today and the number of commitments we all have, it only makes sense that we use all of the tools available to us. Banks can provide a growing list of less traditional services which can be great tools. Help your banker help you. Ask which of these services make sense for your business.