Bank errors can be costly

The Bank is always correct: True or False?

Short answer: FALSE, mistakes are always possible.

Longer answer: read on.

In a perfect world, everything would be, well, perfect. Unfortunately, it is not always so. You might think that since you do all your banking on-line you can not have any problem, because the only transactions that post to your bank account are those that have started online.

You will not get checks from customers and customers who deposit in your bank account? There is always a possibility that the amount coded magnet (which is the amount actually used for the transaction) is entered wrong. The difference can vary from a penny on the dollar amounts.

You do not pay all your bills directly from the manufacturers' websites? Sometimes their systems go wrong and the transactions are sent to the bank two times I double posted (deducted from your balance twice).

Do you have direct deposits coming into your account? Sometimes go astray. One of my clients recently received a warning from one of its customers who had paid his bill with an electronic transfer directly into his business checking account. He assumed the money was there for him to spend.

Some months later he was notified that some checks he had written had bounced. I was asked to reconcile his account (which was not done in a while ') to see if something was wrong. I discovered that his bank deposited his electronic payment from his client in someone else's account.

It took many phone calls and a bit 'of time and energy to get the situation clarified.

It 's also possible that the transactions not authorized may cancel your account because someone broke into your bank's or have you been a victim of identity theft.

Criminals often start their business with small dollar amount items, hoping that you will not notice. If you do not, they graduate to higher amounts. That's why it's important to be able to account for every penny that goes through your bank account.

By the way, you generally have only 60 days from the date of a mistake of telling the bank about it, so it is very important that you make your reconciliations as soon as possible. If you have a large volume of transactions, I recommend you go online at least weekly to check the history of transactions for items that have posted to your account.

The first error is found, the easier it is to correct it. And you can avoid the embarrassment of bounced transactions and limit the amount of fees and charges for services discovered.

If you made the payment of bounces is likely to suffer more complications, including penalties and interest. Also, if you use a payroll service, and pay by bank employees, a single instance of insufficient funds (whether your fault or not) can lead to higher taxes and any restrictions on your account.

One of my clients had a situation just before Christmas, when there were sufficient funds to cover a check of the payroll for direct deposit. The problem was discovered after the customer's business was closed for a holiday of two weeks.

It 'was a small nightmare to get everything resolved, requires a large amount of energy and a lot of phone calls. And the substantial cost of the service.

Bank failures are not common or frequent, but can be expensive and stressful. They can happen to anyone and any business. So please, balance your bank statement regularly: it is definitely worth your time .......