Originally published in Business Credit, The Publication For Credit And Financial Professionals, June 1995.
By David J. Cook
Customers pay your bills with checks. These checks find their way through accounting departments, accounts receivable, cash posting, and sometimes, credit departments, for posting, reconciliation, and preparation for deposit. Checks are payable to your company and certainly not your employee(s) in every case. These checks, hopefully, find their way into your bank account.
Old Rules: Depositing Bank Usually Takes Loss
Your trusted employee, such as data processing, accounts receivable, or posting clerk steals a customer check. Who bears this loss? Under these facts we’ll apply the “old rules.” We have old and new rules, and this article tells you that the old rules don’t apply and the new rules do apply.