Check Cashing: Cash Back For Sole Proprietor Accounts

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Question:

Is it an okay practice to give a customer "less cash" from a deposit on a Sole Proprietor account. That should still establish an audit trail if the checks and the less cash is listed on the deposit slip.

Answer:

For the audit trail to be efficient, the check should be deposited and then a check drawn on the account to cash. But on a sole proprietor account, if they choose "cash back" it's their problem, not yours.

First published on BankersOnline.com 12/3/01