Net float

Net float is the combination of the mail float, processing float, and availability float, and so represents the full duration of all types of check payment float. The net float is important when a business makes payments and receives payments primarily with checks. It is not an issue when electronic payments are used instead.

The aggregate amount of net float in a bank account related to both outgoing and incoming cash flows can be calculated by subtracting paid funds not yet deducted from the account from funds deposited but not yet cleared.

Related Courses

Corporate Cash Management 
Payables Management