Collections Insider

I always recommend making a copy of each check that you process. The reason is should your customer default at any time you now have their bank account information. Once you take a customer/debtor to court and a judgment is awarded in your favor you have the right to levy on your debtor’s bank account, with the help of a Marshal or Sheriff. This makes collecting your debt quick and easy. There are of course exemptions and differences in the collection law based on the state your judgment is entered so talk with your collection agency or attorney about the process.

No one likes to add a step to their accounting procedures, it’s time consuming enough. However I can assure you this is a very important step should your accounts wind up in collections.