Question

What is a valid system to reduce the number of manual checks that need to be written?

O Pay bills every six months instead of every month
O Accept payments from insurance companies by electronic transfer
O Use an online bill payment system
O Delay ordering new supplies until the current supply is gone

Answer 1

A valid system to reduce manual checks for payments is using an online bill payment system, which provides easy and immediate access to funds and facilitates transactions efficiently. The correct answer is option c.

Step-by-step explanation:

The question asks about valid systems to reduce the number of manual checks needed for payments. One effective method to achieve this is by using an online bill payment system. This system not only facilitates transactions but also helps maintain financial control by giving immediate access to the money through electronic transfers rather than writing manual checks. Balancing a checkbook and keeping up to date with finances are important to avoid overdrafts—a situation where withdrawals from an account exceed the available balance, leading to fees for insufficient funds.

For businesses, it is crucial to implement a reliable payment system to manage the cash flow effectively and ensure that they have enough reserves while minimizing the potential for human error as observed in the case where an employee named Noel caught a significant overpayment error. Additionally, having an emergency fund in a savings deposit bank account equivalent to several months of income is advisable for unforeseen financial needs.