Forecasting daily outflows from a bank account

This paper is concerned with forecasting the total dollar amounts of checks presented for payment against a company bank account. Checks are issued each day against the account and mailed to parties located in different parts of the country. The mail lag for each check is taken into account explicitly given that data on this variable are readily available from external sources. Based on the distribution of time until clearance of each check after its receipt, the probability distribution of the total amount presented for payment on each day between consecutive bank statements can be readily computed one day ahead. A procedure for implementation of this forecasting scheme is suggested.