Here's What You Can Do with Paystand's Smart Lockbox for Sage Intacct

Sep 23, 2022 by Sage Thee

Get ready to fully digitize your paper check payments and speed up your time to cash

As the pioneer behind payments-as-a-service, Paystand believes that cash cycles should be fully digitized. That means businesses everywhere should have access to payments that are cashless, feeless, intuitive, and fully integrated into their trusted ERP systems. To date, we have over 500,000 payers transacting on our blockchain-enabled bank-to-bank network, making us the leading digital payments platform for midsize and enterprise companies.

When it comes to our integration for Sage Intacct, we’re focused on creating a solution that makes it easier for businesses to accept payments online, automate essential AR tasks, and help finance organizations where it matters most: saving time and money.

Now, for the first time, we’re making it possible for Sage Intacct users to ditch paper check payments for good with our Smart Lockbox. Here’s everything you need to know about how Smart Lockbox works and how you can use it to change the game for your finance team:

Paper checks are costing your finance organization more than you realize…

Today, over 50% of all B2B payments are made via paper check, and yet, this payment method is highly susceptible to fraud – in fact, B2B payments made via paper check become a target of [fraud 74% of the time]('s face it%2C the traditional,fraud 3%25 of the time.). On top of that, paper checks are riddled with hidden costs: for a standard business, it can cost anywhere between $4 and $20 to process a single paper check. That means, for a business that processes 5,000 paper checks per month, it will inevitably end up spending $1.3k daily, $40k monthly, and $480k annually – just to accept payments from its customers and bring in mission-critical revenue.

As a result, paper checks end up robbing the economy of anywhere between $550B and $1T in errors, delays, and soft costs each year.

In addition to the fact that paper check payments drain revenue away from enterprises, they also require lockbox services in order to be processed securely. However, lockboxes have their own set of drawbacks. They can be relatively costly because businesses are usually required to pay a fixed amount on top of monthly fees in order to secure a proper service.

They also don’t automatically integrate into your native ERP system, which means your AR team has to work overtime to keep track of each separate paper check payment. Traditional lockboxes can extend your DSO because they require checks to be sent through the mail and force a member of your team to drive to the bank to pick them up. Finally, traditional lockboxes are tied to complex processes that have a tendency to slow down your entire finance organization. Here’s what that looks like:

  • Customers send in their payments to a lockbox
  • Bank couriers drive to the bank and pick up the payments
  • The checks are scanned and the data is sent to your AR team
  • Your AR team is left to do data entry, remittance matching, and reconciliation of deposits by hand

Clearly, paper check payments are a less-than-optimal option for AR teams. What’s worse is that they can act as an invisible drag on your bottom line.

But Smart Lockbox is designed to transform the paper check payment process

Paystand built Smart Lockbox as an alternative to traditional lockbox services, and now, for the first time, it’s officially available for all Sage Intacct users.

Smart Lockbox gives AR teams the keys to a fully paperless cash cycle from payer to merchant – one that incentivizes customers to move to a digitized payment model that eliminates manual tasks and lowers operational costs for finance teams.

Here’s a breakdown of how the check payment cycle works with Smart Lockbox:

  • Customers have the option of paying via a “pay now” button or sending a paper check
  • Checks are sent to the lockbox and subsequently scanned; then, the data is automatically sent to Paystand
  • Paystand’s Smart Lockbox receives a check payment, matches it to the corresponding invoice information, and deposits the payment into your bank
  • Check information and transaction details are fully integrated into your Paystand reports and dashboard
  • Paystand sends all transaction details to Sage Intacct and updates your reconciliation status; you’ll also get automated data entry and remittance matching as part of the process

And, here’s Smart Lockbox’s features that can help accelerate your cash cycle and eliminate paper check payments for good:

Receiving funds

Smart Lockbox offers seamless, automated payment acceptance that includes the following:

  • Matching algorithms that ensure accurate, automated processing
  • The ability to receive images digitally, so no paper processing is required
  • A more efficient collections process that reduces DSO

Cash application

When it comes to cash application, cash flow transparency is essential. That’s why Smart Lockbox was built to enable essential features and functions that can help you AR team get a leg up:

  • Integration of digital and paper payments into a single data file to simplify posting
  • Payment data displayed as it comes in, giving you immediate visibility to your cash flow
  • A centralized collections process and a reduction in receivables risk with 24/7 payment tracking

Sage Intacct integration

Automatic ERP reconciliation is important for AR teams that want to save countless hours on manual tasks. Smart Lockbox helps your finance organization cut down on time-wasting operations by doing the following:

  • Enabling touchless check processing that shares data with Sage Intacct
  • Speeding up the matching of transactions from bank statements
  • Scaling AR with less friction, manpower, and overhead

Bank reconciliation

You can also leverage your existing investments with Smart Lockbox. More specifically, Smart Lockbox’s features allow your AR team to access the following:

  • Touchless check processing that automatically shares data with Sage Intacct
  • The ability to speed up the matching of transactions from bank statements
  • A way to scale AR with less friction, manpower, and overhead

On top of all that, Smart Lockbox compiles unmatched payments in real time so you can quickly apply outstanding payments to invoices, match checks to open invoices, and determine overpayments and match them to multiple invoices. It also fully digitizes the paper check payment cycle and ensures that these payments all go to one place: Sage Intacct.

Now, you can change the game for your AR team for good

Paystand is committed to offering digital alternatives to help you shift your customers to zero-fee payment options and faster settlement times. We’re the only company out there with end-to-end tools that can digitize and centralize the entire AR process under a single roof.

Smart Lockbox is a critical component of our vision, and it’s designed to offer a process that’s digital-first and entirely automated, giving your AR team a way to completely outsource the time spent collecting and processing paper check payments.

Our software natively integrates with Sage Intacct to simplify your payment process and reconciliations, and gives you increased visibility into every transaction – ensuring your AR processes can be streamlined and fully digitized.

If you’re ready to transform paper check payments into a seamless, automated experience and decrease your DSO by as much as 80%, you can schedule a demo with one of our payment experts here.