The answer is yes, if your business processes a lot of checks. If your business is processing more than a hundred checks per month, then you should take advantage of electronic remote deposit. Due to recent Check 21 legislation a scanned electronic copy of a check is just as legal as an actual paper check. This allows you to turn your PC and a check scanner into a bank branch and deposit checks easily from your place of business. This is different from a check guarantee scanner that works at the retail point of sale. This is more designed for back office use for companies that deposit a large volume of checks.

Most of the large banks are offering this service to their business customers and the smaller regional banks are trying to catch up fast to compete with their lager competitors. There are some independent companies that are also offering this service to businesses that will allow you to deposit into multiple bank accounts.

This service has many advantages for the businessman that is focused on the bottom line. First, it can dramatically increase cash flow. The independent companies that are offering this service are offering next day funding to compete with the banks. Most banks will show you a "memo post" the next day, but beware this is not the same as an actual cash deposit. The funds may not be available for a day or two, so that the bank can earn interest on your money. Check with your bank to be sure. If your bank does not offer true next day funding on your electronic check deposits, then shop around for an independent company or bank that will. Having the money in the bank faster will not only increase your cash flow to help pay business expenses, but can allow you to earn interest on your money instead of the bank earning interest on your money. You can't legally earn interest on a Demand Deposit Account (DDA), which is what your business account is, however you can have your bank set up a "Sweep Account" and the funds will sweep over to an interest barring account overnight and earn interest and then sweep back into your DDA account during business hours for your normal business activities.

The second main reason that businesses are turning to electronic remote check deposits is the convenience factor. Imagine never missing a cut off at the bank because the line was too long. Not to mentioned the time and money of having an employee stand in line at the bank. Instead of having to work around your banker's hours you can now make deposits 24/7/365 while increasing employee efficiency, lowering your bank fees, and save time and effort. If you factor in transportation cost these days, you will find that this service more that pays for itself.

About The Author:

W. Edmund Dykes, II is a sales professional who works in the Tampa Bay area in Florida. He has an extensive sales background in insurance, employee benefits, investments, merchant services, payroll, and electronic fund transfers for companies.

He can be reached at WEdmund.Dykes@e-hps.com [1] or 813-802-1708.