Prerequisites
- A bank-approved account and deposit path mapped for each named payee
- A decision on deposit method
- A daily reconciliation process
Choose a deposit method
A lockbox can improve control as well as convenience. It keeps physical checks away from the front desk, reducing theft and simplifying internal controls. Lenders may also require a controlled lockbox for a facility secured by healthcare receivables. See Working capital and AR lending.
Endorsement and entity matching
A check payable to a named entity follows the bank’s payee, endorsement, and account-eligibility rules. You cannot simply deposit a check payable to “Bluebird Dental TX, P.C.” into the Oklahoma PC’s or the DSO’s account for convenience. Any endorsement, agency, lockbox, FBO, or other collection exception must be accepted by the bank and supported by the governing documents. Post the receipt to the named payee’s ledger and retain the deposit audit trail. In a multi-entity group this means payee-specific endorsement handling and deposit instructions. Separate stamps and workflows are a straightforward control; a bank-approved centralized workflow can also work if it preserves payee identification and entity ledgers. Use a restrictive endorsement: “For Deposit Only, [Entity Legal Name], [Account Number].” It limits what can be done with a lost or stolen check. Checks endorsed by patients. A plan may pay the patient when the treating dentist is out of network. The patient may then bring you the payer’s check, signed over to the practice, or a personal check for the balance. Treat either as a patient payment, log it, and match it to the claim before posting.Joint-payee checks
🦷 Oral surgery and trauma cases: personal-injury and auto-accident settlements can produce checks payable jointly to the practice and the patient or the attorney. Follow the bank’s joint-payee endorsement requirements before deposit.Build this into the workflow: a process for obtaining the patient’s or attorney’s endorsement, a tracking log for checks awaiting endorsement, and a policy for how long you hold one before escalating. Joint-payee checks sitting in a drawer awaiting a signature are uncollected revenue and a control risk. See Oral surgery and implants.
Deposits can reverse days later
A deposited check can be returned after you have treated the funds as available.
The return arrives days later, reverses the credit, and usually carries a fee.
Mobile deposit specifically: mark or destroy the physical check after deposit per your bank’s retention guidance, so it can’t be deposited twice.
Reassociating paper to remittances
Harder than with EFT. An EFT carries the TRN trace number in its ACH addenda record; a paper check does not. The process:- Log every check on receipt, payer, check number, amount, date received
- Match to the 835 by check number where the remittance references it
- Where no 835 exists, work from the paper EOB, request an electronic remittance, or push the payer to ERA
- Never post a paper payment without knowing which claims it covers
Push payers to EFT
Paper checks create recurring handling costs. Complete EFT enrollment with each payer. Delta Dental consists of 39 separate member companies, so enrollment is handled separately with each one. And if a payer sends virtual credit cards instead of EFT, that costs you 2–3% of the payment. Enroll in EFT and ask in writing to opt out of the card program. See Paper checks and virtual credit cards.Multi-entity check operations
For each payee entity, document:- A deposit method that routes named-payee checks to an account the bank accepts for that payee
- An authorized endorsement method, whether a separate stamp or a controlled centralized workflow
- Payee-specific lockbox instructions or a bank-approved multi-payee, FBO, or other collection structure
- An outbound-refund method that follows the issuing bank’s drawer, account, and signer rules and preserves the responsible entity’s ledger
Lemma includes check deposit across entities in one interface, so a multi-PC group doesn’t need a separate deposit workflow and login per entity. Named here under our mention policy; the endorsement and reconciliation discipline above applies wherever you bank.
Verify it worked
- Deposit method chosen appropriately for volume
- Per-entity endorsement stamps, restrictive endorsement in use
- Every check follows the bank’s rules for the named payee and eligible destination account
- Joint-payee workflow defined with a tracking log
- Checks logged on receipt before deposit
- Returned-item review part of daily reconciliation
- Patient checks not posted as cleared on deposit date
- Physical checks marked or destroyed after mobile deposit
- Paper-paying payers being converted to EFT