You may not know it but checks are still one of the best payment options for most businesses. Business checks provide an ideal way of settling financial dues including paying vendors and giving salaries. In this day and age of online banking and credit cards, business checks continue to hold their ground. Here are few reasons why.
Actual Paper Trail
Whether issuing manual or computer business checks, a banking record is created which includes the full details of the payment. These include the name of the recipient, the amount paid, and the date when the payment was cleared. A business owner can, therefore, review the date when the check was cleared as well as the person who signed it. This paper trail enables a business or company to maintain a robust financial record. For records keeping purposes, companies can also save copies of the issued checks. This empowers businesses to refer back to this paper evidence when resolving a dispute.
Greater Payment Control
Business checks allow greater control over the payments. Companies can hold a payment by calling the bank and stopping the check. This can be done when a vendor does not deliver the promised goods or services. Checks can also be post-dated to ensure the money is released at a particular time. This buys companies crucial time to ensure their accounts are sufficiently funded.
Enhanced Security Features
When it comes to cashing a check, only the authorized recipient is allowed to receive the payment. If a particular recipient does not acknowledge receiving a payment, businesses can seek verification from the bank and ask for the details of the person who presented that check. This is why business checks make resolving discrepancies a lot easier. Each business check comes with a unique number. When browsing a checkbook, a missing page can thus be easily detected and tracked. To top it off, business checks also reduce cash transactions, which are unsecured and untraceable.
More Money in the Bank
The time that passes from the point a check is printed till the money leaves the bank account can give companies a few days extra to earn interest. It may not sound much, but for a large corporation issuing hundreds of checks to vendors and employees, these few days of interest can really be substantial.
Businesses often rely on check printing companies instead of banks to order business checks in bulk. A good business checks printing service allows companies to buy checks at discounted rates and thus save more money.
Allows Expense Management for Filing Tax Returns
Business checks are linked to business checking accounts. A checking account enables business owners to easily submit their taxes returns. All they need to do is check their account statement to figure out their business expenses and income to file an accurate tax return. This is crucial for any business as failing to do so can lead to severe penalties.
Figuring out the total expenses of a business becomes easier when payments are made using checks. Companies can track all the check payments by reviewing banking statements to quickly figure out their actual business expenses and thus calculate their total income.