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?

Question

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?

• 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.

Answer 1

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 can help ensure that there are sufficient funds in the account before a transaction is processed, reducing the chances of an accounting error causing a check to bounce. This also provides a more secure and efficient way of conducting business transactions.