Here are five amazing advantages that you can enjoy as a business owner who uses paper checks for their business expenses:
1. The Undeniable Paper Trail
Using paper checks leaves behind a paper trail and you can use this paper trail in two ways as a business owner. First, you will have an easier way to manage and keep track of your cash flow, particularly in terms of your business expenses. When you use checks to cover all your business expenses, you can use accounting software such as QuickBooks to easily and accurately track the cash flow. Whether you’re paying utilities or vendors, you will have an easier time seeing where the money is going as well as an accurate breakdown of all your expenses.
Second, you will be more secure and protected against possible instances of fraud! Custom printed checks, particularly those that are created to work with accounting software, have tons of built-in security features that will prevent check fraud. The checks are printed on special paper and with special ink, and they can only be printed by reputable, licensed printing companies.
2. Custom Business Checks Look Professional
The number one rule for SMB (small and medium business) owners is that they should keep personal and corporate bank accounts separate. Thus, paying your vendors and suppliers from a personal account looks highly unprofessional and may damage your company’s reputation.
When you use business checks with your company’s logo, on the other hand, you will be giving your checks, and by extension your company, an appearance of professionalism and legitimacy. It sends a signal that you are a responsible and business-savvy owner that knows how to keep their personal and professional finances separate and properly managed.
3. No Additional Fees
Digital banking and credit cards are convenient, but they come with a price: processing fees. Many companies that accept credit card payments use third-party companies to process these payments and in turn pass on the fees to the customers.
With checks, however, you and your vendor will avoid these fees. In general, there are no fees associated with processing checks, and if there are any fees, they are usually negligible.
4. Faster and Quicker Processing
In the past, people were hesitant to use checks because of the long processing times that were associated with using paper checks. The recipient had to physically visit their bank, wait in line, wait for the teller to verify and process the check, and then wait for the check to clear before the money could be deposited into their account.
These days, however, electronic check processing (ETC) has made the process fast, easy, and in some cases, can even be done in real time! If your vendor is using a check that’s compatible with ETC, they can simply use their mobile banking app to scan the check. The check will then be verified and the money will be deposited into their account. The whole process is done electronically, and during the process, the paper check will be voided. This means that there is also little to no chance of fraud occurring, as scanned checks will no longer be valid.
5. Some Businesses/Vendors Just Prefer Checks
In some cases, you will still encounter businesses, companies, or organizations that prefer using checks over digital or credit card payments. Generally, government offices and utility companies prefer using paper checks because of their universal acceptance. This is especially true if you’re living in rural areas where there are small, locally-based banks. In these areas, many businesses are also not equipped to handle debit or credit card payments because it is expensive to set up these payment processes.
Of course, there are also cases of old-fashioned businesses where the business owner just prefers to use checks. If you’re dealing with elderly business owners, it is a common occurrence that they want checks or straight cash.
Finally, some business owners prefer checks because they don’t want to deal with processing electronic payments.