Cheque Reconciliation Service is a good upgrade to our cheque system because it is meant to provide companies to better manage and secure their outgoing cheques. The implementation of this service will not change our existing infrastructure of the chequeing system. Cheques are still going to be issued, printed and mailed. The security feature it provides will enable us to identify any exceptions when it first occurs, and we have the choice of paying it or not. In addition, the reports it produces include either weekly or monthly paid item and outstanding cheque list in an upload able data format. The accounting team can import the file to the accounting system, so that no cheque sorting has to be done, and no data entering has to be done to tick out the cheques paid manually either. Instead, TD bank will send us a CD with images of cheques cashed so that we can access the cheque data much quicker and easier.
Bank reconciliation is expected to be done fairly quickly under this options and we estimate this can save the accountant 8 hours per month, which roughly translate to $150/month. It also makes the bank reconciliation more accurate because it would be easy to import the bank reconciliation into the accounting software.
Electronic Funds Transfer is beneficial because it can decrease overall costs of cheque production, delivery and reconciliation. It can also reduce the amount of paperwork that the cheque brings itself, which can reduce theft and increase security. By reducing the paperwork, it can reduce clerical work and errors through automation. Instead of the delay in sending the cheques, electronic funds transfer would provide instant collection and sending of money. On the other hand, this new service will require us to re-vamp the way we send funds (via cheques),