22 Nov Make Deposits Regularly
Posted at 06:12h in
Make Deposits Regularly
There are many reasons why bank deposits should be made regularly. Some of them include:
- Safeguarding of assets – checks cannot be lost if they have been taken to the bank
- Accurate accounting records – if checks are sitting in a drawer and have not been entered yet, the accounting records do not reflect the correct balances. Even if the procedure is to make the deposit once a week, be sure to make the deposit on the last day of each period.
- Historical balances – several decisions may be made on historical bank account balances. For example, if excess cash is typically kept in the bank account, additional services may be available at no charge, when a bank or other lender is considering extending credit, the average balance in the checking account may help sway them one direction or the other, etc.
Have procedures in place that state how quickly a bank deposit should be made. For example, every day, when the deposit exceeds $500, within 2 working days of receipt of the payment, each Friday, etc.