What Is Float?
The time gap between when a payment is sent and when the funds are available to the recipient.
Detailed Explanation
Float can work for or against a business depending on whether you are paying or collecting. Managing float is key to short-term cash planning.
Example
A check mailed on Monday may have three days of float before the deposit clears.
Why It Matters
Understanding float prevents overdrafts and helps optimize payment timing.
Related Resources
Related Accounting Basics Terms
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