Some small businesses still prefer to use their personal checkbook to write checks for business expenses. Other small businesses don’t even write checks when they are handling different business expenses.
Much of the reason for the lack of utilizing checks is because so many transactions can be more easily and quickly done digitally. The ability to automatically track transactions and pay expenses out digitally and not have to spend the time actually writing checks and mailing or personally hand them out seems more efficient.
Additionally, some people just do not like doing it simply because it seems old-fashioned.
However, there are some marked benefits for having a specialized business checking account from which you can write actual checks to your business partners or for your business expenses.
Why Should I Use Business Checks?
The act of writing and distributing material checks may seem much too time-consuming and not really up-to-date with the modern era, but there are so many benefits that can be gained from doing this old school method that cannot be gained by using digital transactions only in your business.
It Shows Professionalism
Especially if you are a fledgling company or are even if you are a struggling business that needs an image revitalization, checks can give the appearance of professionalism more than doing business digitally.
Potential clients and other business acquaintances’ perceptions can be raised by utilizing this more formal way of transferring funds. In business, the impression you make is everything.
The check gives the recipient of a host of professional information. It can legitimize your company in a way that a digital funds transfer cannot. Your name, logo, and address will be first and foremost in the mind of who you are doing business with.
These physical checks can also be used as amazing marketing tools that will physically be remembered in an age where digital branding can easily be forgotten.
Also, if you have been using personal checks rather than business checks for business transactions, this may give the impression of a lack of knowledge of how business is done and may decrease the legitimacy of whatever transaction or deal you are completing.
Know Your Client Base
Younger business associates that you interact with may have no problems with you using personal checks or exclusively digital transactions. However, a large market share of business owners and customers have so much higher respect for the tactile nature and professionalism of business checks.
Also, many businesses don’t even offer the option of supporting business transactions or customer payments with physical checks. Giving that option may open you up to a higher variety of business.
It can also establish an undefined trust between you and your business associates that digital and personal check transactions cannot engender.
Business checks can also make your accounting much more streamlined. If you are trying to account for a mix of personal expenses and business expenses the accounting process can be complex and frustrating. However, if you have only business expenses paid out of your designated business account, your bookkeeping will be speedy and organized.
Not only will the organization be a huge benefit, but if you are ever audited the process will be much easier if you have organized and easy to account for transactions.
Accounting software typically favors payments paid out in checks as well. A program such as QuickBooks can more easily receive check information into its software than other kinds of digital ledgers.