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Using personal bank ac for lodging cheques?

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  • 25-10-2005 12:15pm
    #1
    heggie
    Closed Accounts Posts: 1,879 ✭✭✭


    if i had a cheque made out to my registered business name, can i cash that in a personal bank account, or do i need to register a busienss bank ac ?
    thanks in advance.


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    #2
    Jonathan McCoy
    Closed Accounts Posts: 7 ✭Jonathan McCoy


    You can only lodge the cheque in the account of the person or business entity it is made out to. You cant lodge a cheque made out to XYZ Ltd in the account of John Doe. If you have a registered business name and you are trading, you should really open a seperate bank account for your business activities, as mixing your personal and business finances can have a bad effect when it comes to making a tax return. I hope this helps.


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    #3
    CCOVICH
    Closed Accounts Posts: 240 ✭✭CCOVICH


    AFAIK, you can lodge ANY cheque to your own acccount as long as it is appropriately endorsed.

    The only excpetion I can think of is where the cheque is crossed "A/c payee only", in which case the cheque must be lodged to the account of the payee.

    As the previous poster suggested, it might not be the best idea to mix business finances with personal finances.


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    #4
    heggie
    Closed Accounts Posts: 1,879 ✭✭✭heggie


    ok thanks, basically i have a reg biz name, and was going to open a 2nd 'personal/standard' bank ac, and use that for business, but then it dawned on me that I wouldnt be able to lodge cheques made out to my business name (at least i think i wont). if I have to open a business account, anyone know what i'd need to do so? and who are the best banks to go with for the least amount of hassle? thanks


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    #5
    nlgbbbblth
    Closed Accounts Posts: 5,668 ✭✭✭nlgbbbblth


    CCOVICH wrote:
    AFAIK, you can lodge ANY cheque to your own acccount as long as it is appropriately endorsed.

    The only excpetion I can think of is where the cheque is crossed "A/c payee only", in which case the cheque must be lodged to the account of the payee.

    Not true.

    The Cheques Act 1959 states that cheques with the following crossings ARE endorsable to a third party.
    - Two lines / /
    - & Co
    - 'Account payee only'

    The following crossings make the cheque NOT endorsable
    - 'Not negotiable'
    - 'Account payee only - not negotiable'

    In practice any cheque can be lodged to any account. At the end of the day a cheque is just a piece of paper. It does not have any special or magical powers that could make it burst into flames/disintegrate into powder/disappear if it is being lodged inappropriately. The encoding machines that read cheques are not intelligent enough to refuse to process it either.

    However if the cheque is returned unpaid and procedures have not been followed then problems can arise and the bank may have no protection.


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