An insurance company has recently begun collecting its premiums electronically instead of by mailed checks.A predictable effect of this on the insurance company would be

Question

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Collecting premiums electronically would provide the insurance company with more accurate cash forecasts because the company would have immediate access to its funds, unlike with mailed checks, which could take days or even weeks to process. This would help the company better plan its finances and manage cash flow. While there may be some additional bank charges associated with electronic payments, it is a small price to pay compared to the benefits of accurate cash forecasting. Staffing expenses would not necessarily be higher since the company would not need to hire additional staff to manage electronic payments, and return items may actually decrease since electronic payments are less prone to errors and delays than mailed checks.

An Insurance Company Has Recently Begun Collecting Its Premiums Electronically