Business checks are still an important part of doing business. Checks make it easy to pay vendors, reduce reliance on credit cards and keep a business running on cash. This reduces business some risks. They are very important to run a small business in an affordable manner.
Here are some reasons why business checks are considered useful:
- Business checks provide immediate access to the account. One is able to write checks to vendors at the time of transaction rather than relying on credit cards. Check payments often allow discounts on some of the trade.
- Checks allow business owners to keep records in order. Only spending money in the account allows maintaining a positive cash flow and prevents the business getting into debt with the bank. Such fast checks provide access to funds so vendors and all the expenses can be managed.
- Checks provides an easy way to track expenses using bookkeepers. Checks can be handwritten or through the computer and printer, whichever is more suitable.
- As long as there is a good tracking process, business checks make it easy to find out who has been paid and what is remaining. Credit cards can be confusing. Bank statements take months to arrive and receipts are not always ready when needed.
- Checks are an affordable way to pay vendors. The cost of checks is nominal. Interest rates associated with credit cards can cause major problems and various charges are involved.
These are just some of the reasons business checks are still important, especially for a small business. Even so, paying with cash and check is reducing due to the popularity of credit and debit cards. There are also other forms of mobile payments. Many small brick and mortar businesses still favor the convenience of checking. According to reports, 90% of small businesses accept checks.
Check processing is now different to what it was 20 years back. There are now better processing options and solutions that involve fewer hassles and real-time authorization. Fraud is a problem no matter what method of payment is used, but at least with checks, the numbers cannot be stolen on the internet.
Business checks can be beneficial for small businesses, especially those that do not need or want to be computerized. Even so, checks are being superceded by electronic payment methods, even though direct costs are less with checks. The simple reason for that is newer methods offer more advantages. It all depends on the objectives of the business and how the business owner thinks.