Hassle-free handling of uncashed checks

Most companies view their accounts payable process as a neat, closed-loop system. Services and goods are purchased, invoices are received and entered, payments are sent, and accounts are reconciled. But what happens when those checks aren’t cashed?

And what about claim systems that issue thousands of checks each month? A percentage of these from every check run will never hit the bank.

Uncashed checks can present real and unexpected problems for many companies. Each state in which you do business has its own requirements for handling “escheatage,” or unclaimed property. These requirements concern, among other things, the due diligence that must be performed for each check and the elapsed time before payments must be turned over to the state.

Navigating State Waters

PayPilot’s Escheat Processing module is your compass for navigating these complicated state requirements. A special table in the PayPilot database allows you to capture all the due diligence regulations for each state. This table is then used to scan your outstanding checks and create an export file for payments meeting each state’s parameters. These export files can be used to generate letters and/or to feed into a third-party escheatage processing application.

Correctly handling uncashed checks can become more than a nuisance for any business. It is an expensive, time-consuming, compliance hassle. But not if you stay on top of the problem with automated assistance from PayPilot.