Banks are very important to businesses, providing a convenient and secure place to keep funds and also a source of financing when a business is short of cash. In this chapter you have seen how cheques, standing orders and direct debits as well as debit cards are useful ways to pay for goods and services. In addition, credit and charge cards are convenient payment devices too.

Generally most transactions are completed correctly and the cash, cheques, credit card vouchers and so on can be paid into the business bank account using appropriate forms. However, an awareness of problems which can occur may help to identify and avoid potential problems at an early stage. For example, if a cheque is received from a customer, it should be reviewed to ensure that it is complete (e.g. properly prepared, signed and dated, with the amount in words and figures agreed) before it is processed and banked, to avoid having to deal with a cheque returned by the bank.

All transfers of cash, cheques and so on within a business and in transit to the bank need to be handled with care and with appropriate security to avoid loss, theft or destruction and to provide a transaction trail.