Cash Management

Jackie Wilson, manager of Expert Building Company, is a valued and trusted employee. She has been with the company from its start two years ago. Because of the demands of her job, she has not taken a vacation since she began working. She is in charge of recording collections on account, making the daily bank deposits, and reconciling the bank statement. Early this year, clients began complaining to you, the president, about incorrect statements. As president, you check into this matter. Jackie tells you there is nothing to worry about. She asserts, “The problem is due to the slow mail; customers’ payments and statements are crossing in the mail.” However, because clients were not complaining last year, you doubt that the mail is the primary reason for the problem. What might be some of the reasons for the delay? What are some other problems that might begin to occur? What can be done to remedy the problem? What should be done to make sure the problems are avoided in the future?