Reporting and Operations
If a large volume of checks is received by the organization, a lockbox may be appropriate. Banks receive the checks directly and the deposit is made upon receipt. The organization receives a report from the bank of the activity along with the supporting documentation.
Cost can be factor in the decision to use a lockbox, but the time savings and additional controls provided may offset the expense.
When investigating lock boxes, also give consideration to whether the bank can process credit card payments. If not, the transaction will be sent to your organization for manual processing. In these instances a substantial delay can occur before the organization receives the information.