Are you using cash or personal checks for your business? Although most financial transactions can now be done digitally, it still makes sense to use business checks for business purposes. No matter how small, businesses should have checking accounts and business checks should be used for making most payments.
If you are wondering about the importance of checks for business use, here are 5 reasons why they remain critical.
1. Adds a Degree of Professionalism.
Business checks make companies look and feel more professional. It boosts the perceived value of a firm and impresses business associates and employees. Employees who receive business checks with company logos believe that they are working for a stable firm. This encourages them to work harder. Moreover, the company info and logo printed on a business check increase brand visibility.
2. Checks Are For Everyone.
There are still a lot of people who are not entirely comfortable with digital banking. Elderly individuals often prefer old-school check payments. Checks can also be given to people who have no bank accounts. Companies can easily issue bearer checks and pay these individuals. There are also several businesses that do not accept credit cards. To be able to accept credit card payments businesses need to pay a processing fee, which a lot of business owners don’t want to pay. This is the reason why a lot of local stores only accept cash or check.
3. Much Easier to Track Expenses.
Accounting becomes much easier when you use business checks. That’s because business checks enable you to separate personal expenses and business expenses. This allows you to calculate your expenses and total income when it’s time to file annual tax returns. In case your business gets audited, payments made using business checks for business-related expenses makes things a lot less complicated.
4. They Are Highly Traceable.
Computer business checks are easy to integrate with accounting software packages and you can use high quality colored envelopes to mail them to anyone with an address. From keeping tabs of printed checks to tracking mails, the entire process of sending checks is highly traceable. For example, if your business uses an accounting program, you will be able to find specific checks issued on specific dates to specific individuals. If a recipient disputes a particular payment, you can easily call the bank and have it verified. The bank verification of a check payment is legally binding and it can resolve complicated payment issues instantly or prevent them from ever happening.
5. Easiest Way to Pay When Traveling.
When it comes to making payments on the go, there is no denying the convenience of manual business checks. While electronic transactions require registering the recipient’s account number, writing checks take almost no time at all. Credit cards are also not viable payment methods when paying an individual. This is the reason why most business associates prefer carrying multiple checkbooks when traveling to meet vendors and clients.