While medium and large organizations can accept multiple payments like debit and credit cards, small businesses may not have the equipment to work with most of these options. If you own a small business, you probably know that the sales volume is relatively low, making it difficult to afford the processors. For that reason, writing checks prove to be the only practical option until your business expands. Although some small companies are taking steps to have digital monetary exchanges, there are still good reasons for using business checks.
Easier Accounting
One of the most important reasons to use business checks is to make your accounting and bookkeeping easier. Checks enable you to separate your personal expenses from your business expenses, helping you to stay organized. This is important as it helps enhance your bookkeeping speed and tax processes. Furthermore, staying organized and separating your accounts can be helpful in case your business gets audited.
Professional Sense
Using business checks is an excellent way to add an extra sense of professionalism to your small business. Besides enhancing your company’s feel and look, a business check will definitely impress business associates and clients. Nothing compares to the feeling of handing a business associate or potential client a check. Plus, the impression it will create with your company logo, name, and address on it is and priceless. Similarly, offering paper checks provides a sense of permanence, especially to the holders.
Make it Easier to Track Expenses
Keeping track of company expenses is the key to running a successful business regardless of its size and type. You can use business checks in tracking cash flow and paying your business expenses. Although some people overlook the importance of separating personal checks from their business checks, it is crucial to note that handling these accounts separately can help track business-related expenses more easily. When paying utility bills, employees, or suppliers using business checks, you can calculate the total cost by evaluating the banking statements and reviewing the check payments.
No Processing Charges Required
Unlike other business payment methods with limitations, business checks are universally accepted. Businesses using credit card payments often require that users pay for the processing fee; this can be challenging if you have limited resources. Furthermore, as an entrepreneur, you may want to partner with other businesses that don’t accept debit or credit cards. In this case, you might need to use business checks because of their flexibility and cost-effectiveness.
Some People Still Prefer Checks
Although many people today are inclined to digital transactions, there is a large percentage of individuals who feel safe with checks. For instance, you may have older clients who aren’t tech-savvy or customers who are not comfortable transacting online. That is why it’s vital to assess your business and understand who you are dealing with. If most of your customers prefer checks, it will help if you also provided paper checks. Besides, business checks offer efficient and quick payments without consuming too much of customers’ time in providing recipients account information.
E-checks Have Made Things More Convenient
One of the main reasons many people don’t accept check payments is the delays associated with traveling to the bank to deposit the paper check. But as technology advances, innovations seem to offer practical solutions to this problem. Banking services like electronic check support transform the old paper checks into more convenient electronic checks. This allows people to scan and send e-checks via various mobile banking apps. Upon scanning and sending, the check is instantly voided, and the money is wired to the recipient’s account digitally. This process is more effective and quick as compared to paper check payments.
