The best strategy for avoiding this problem in the future would be to insist on electronic payments so there is less opportunity for error. Electronic payments are typically processed instantly and can provide more visibility and control over cash flow, reducing the risk of overdrafts or bouncing checks due to accounting errors. Additionally, implementing regular reconciliations and monitoring account balances can further assist in preventing such issues.
A business writes a check to a supplier. However, there is an accounting error that the business owner is unaware of and there is not enough money in the account to cover the check. What is the best strategy for avoiding this problem in the future?
Responses
Switch to using cash for all business transactions.
Assume it was a one-time problem and keep taking checks.
Insist on electronic payments so there is less opportunity for error.
Stop doing business with this client since the client committed a crime.
1 answer
1 answer