Business Account Authorized Signers Cashing Checks

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Question:

What are your thoughts on allowing any authorized signer on any type of business account (SP, Partnerships, Corporations, Non-profit) to cash checks made payable to the business (without making a deposit) and/or make deposits with cash back?

Answer:

My thoughts on this are very few and they all center on the phrase "Don't do it!"

I've opined before that it might be OK to cash (or allow cash back) for an SP, but even that practice is considered a bad idea by many.

Doing either for any other form of business is just playing with fire!

First published on BankersOnline.com 06/16/03