More on Float – Red Alert!

Under the rubric of Homeland Security, banks now have the authority, as of October 28, 2004, to send you a “substitute check,” which is a printed copy of your check after it has been imaged. Thus, clearing of checks (and withdrawal of funds from your account) no long depends on transporting a physical piece of paper from one location to another. The theory is that commerce can continue irrespective of attacks on our country.

From a management perspective, this is a “red flag” alert. While your revenue will come in later than the date billed, your expenses will go out almost immediately upon mailing/delivering your check.


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