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?

A. • Switch to using cash for all business transactions.
B. • Assume it was a one-time problem and keep taking checks.
C. • Insist on electronic payments so there is less opportunity for error.
D. • Stop doing business with this client since the client committed a crime.

Answer 1

C. • Insist on electronic payments so there is less opportunity for error.

By using electronic payments, the business can have more control over the amount being transferred and can ensure that there are sufficient funds in the account before the payment is made. This can help prevent accounting errors and potential overdraft situations in the future.