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.Tags: Cash Flow - Finances
Categorized in: Cash Flow - Finances