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#1935957 - 06/26/14 09:23 PM Personal Checks into business accounts
BSAmic Offline
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BSAmic
Joined: Apr 2014
Posts: 6
Illinois
Where I've worked previously it was always a big NO-NO to deposit personal checks into a business account unless that account was a sole prop. Now I'm seeing one particular account where the customers used to write checks payable to the business and have begun making them payable to the signer himself. The checks are then deposited in the business account, not a personal account. I seem to be the only one here who has an issue with it. Can anyone site any useful articles or docs for my point?

Thanks!
Last edited by BSAmic; 06/26/14 09:24 PM.
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#1935999 - 06/27/14 11:32 AM Re: Personal Checks into business accounts BSAmic
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 80,370
Galveston, TX
What is to cite? Call the customer and ask them why they are doing this. It might be that he dissolved the formal business entity.

It is up to the bank whether or not to accept these for deposit. Each check however should be properly endorsed over to the business entity prior to deposit.
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#1936002 - 06/27/14 11:47 AM Re: Personal Checks into business accounts BSAmic
Elwood P. Dowd Offline
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Elwood P. Dowd
Joined: Aug 2001
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Next to Harvey
Quote:
it was always a big NO-NO to deposit personal checks into a business account unless that account was a sole prop


The larger concern is when someone wants to deposit "business" checks into a personal account. It's possible to endorse a personal check over to a business entity without raising any red flags. However, it may not make a lot of sense unless a client has mistakenly issued a check to a principal rather than the entity; i.e. it should not be routine.
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#1936041 - 06/27/14 01:36 PM Re: Personal Checks into business accounts BSAmic
BSAmic Offline
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BSAmic
Joined: Apr 2014
Posts: 6
Illinois
Thank you both for the input. I believe we will reach out for further explanation. I appreciate the help!
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