Cheque Clearance Tracking

[Former Member]

Hello all,

I have a general question about tracking uncleared cheques, both incoming and outgoing.

I would be interested in hearing other peoples ideas about coping with the following scenarios in the most efficient way:

Incoming:

Once a cheques date becomes current and is deposited to the bank, tracking the cleared status during the 4/5 working days it takes for the bank to clear a cheque. We presently do not do this at all, it just goes straight into the account as normal funds.

Outgoing:

Tracking the cheques cleared status between us issuing it and the funds leaving our account. Again, we presently just credit the bank account straight away and if the client holds the cheque for weeks before cashing it, we spot it during reconciliation.

Our business has grown from a very small operation and have outgrown some of our accounting practices. I would be very appreciative to hear other ideas about how to best deal with this situations in B1.

Thanking you in advance.

[Former Member]

In my opinion, there is no need for uniform solution to this process since all businesses are different. Depending on the percentage of Cheque Clearance problems, the efficiency will take lead. Whatever is good for business, it should be adopted. Any controls in the business process have to get benefit over the cost.

Thanks,

Gordon

[Former Member]

Just to bring this good question up as nobody has replied...