Before you issue a cheque, check your account

Written by; Regina Bless

Issuing a cheque may seem like a simple financial transaction, but failing to ensure that sufficient funds are available can lead to financial and other consequences associated with a dud cheque.

To avoid such situations, account holders are encouraged to take a few simple steps before signing and issuing a cheque.

First, ensure that there are sufficient funds in the account to cover the amount stated on the cheque. It is also important to check the current account balance and consider any pending transactions that could affect the available funds.

Account holders should also keep proper records of cheques they have already issued to avoid accidentally committing funds that are no longer available.

A little planning and careful account management can help prevent a cheque from being returned unpaid and reduce the risk of unnecessary financial complications.

Before you issue a cheque, check your balance, account for pending transactions and make sure the cheque will clear.