Friday, February 22, 2008

Business Checks Are Professional

Once the sale is made and the bill is ready to be sent, nothing can be as beneficial to the small business as being able to accept business checks. Unfortunately, banks won’t allow an individual to deposit a check made out to a business into an individual account. That being said, in order to accept checks made out to a business, you must first set up a checking account in that business’ name.

According to the Small Business Administration, one of the Financial Six C’s that any company, regardless of size, should strive to achieve is confidence. This does not mean the business owner’s confidence in their business or business idea. It means the confidence that outsiders have in that business, especially as to that business’ ability to repay debt. Being able to use business checks can go a long way toward building a good reputation for your business, as well as cultivating confidence in your customers.

In addition to the various state, local, and federal regulations dealing with business accounting practices, businesses need to have their own separate checking accounts in order to prove financial stability. This is never truer than when a business applies for outside funding. One of the primary questions asked is whether or not the business has an account. That question is followed closely by an inquiry about banking references. Without proper business checks and a business checking account, it will be virtually impossible to establish credit in the business entity’s name.

Business Checks vs. Personal Checks

Business checks are checks used by a business to pay for bills. The same way an individual uses a personal check to pay for their electricity, car payments, and food, a business uses checks to pay their creditors.

A business check looks slightly different then a personal check. A business check is normally larger then a personal check and can be printed on a printer. The check normally has the business name and address on it, and may at times have a contact phone number. The business check normally comes in a box and the checks are printed on laser paper. This paper can easily be placed into a printer and the information can be printed on to the check easily.

A personal check normally can fit in a small checkbook, and this checkbook can easily be carried in a purse or in a wallet. The check is accepted if the person handwrites the information onto the check right in front of a cashier or similar person. A business check must be typewritten or printed before another company will accept it as payment. Business checks also cost more than personal checks due to the higher volume of checks that a company may write compared to the amount of checks an individual will write. Both checks can be cashed the same way, and this is by signing the back of the check. Nowadays, most places such as currency exchanges won’t cash a personal check, but they will be more willing to cash a business check.

Benefits of Using Business Checks

When a person has their own business, it is far better to use business checks when making purchases for the business or paying bills associated with the business. It is imperative that one keep their personal finances separate from business finances, not only to keep a close watch on the productivity of the business, but also in order to remain sufficiently organized come tax time. In truth, if a business owner is ever audited, they aren’t going to want to shuffle through thousands of personal transactions to weed out the checks associated with the business alone.

Business checks can be stored as receipts for all of your business’s purchases. Then, if you need to refer to a receipt to act on a warranty or if you should ever require a receipt for any reason, you will already have a receipt with your business’ name firmly established on the front of the check.

Of course, business checks have other advantages as well. When a business owner uses a check with the business name and logo on them, it is much like a business card. All of the business’ contact information is on the check and the recipient of the check will have the contact information and can later add it to an address book. Meanwhile, the mere fact that a business owner uses business checks makes the business owner seemingly act in a professional manner. Furthermore, if you start your series of business checks at a random number, instead of at 0001, you will find that the checks will give your business the appearance of being well established.

Business Checks

In today’s commercial environment, where competition for market share is all about survival of the fittest, having business checks can help improve the efficiency of your business. The majority of companies that make use of business checks are usually sole-proprietors and small businesses. Therefore, if you run a small company and find that you often have to write many checks by hand on a daily basis, then business checks are exactly what you need. Business checks will save you the hassle of spending valuable business time on writing and signing checks. Moreover, business checks will give your business some personality and individuality.

Business checks will help streamline all the accounting/finance operations of your business. Furthermore, if you decide that your business will benefit from using business checks, then you should consider going for laser business checks. Laser business checks have been around for a few years now, and because these types of checks are accompanied by computer technology, they are a valuable asset to any business. The computer software that comes with laser business checks allows you to keep records of the various business checks you print out. It also enables you to keep track of your check balances on your computer. This sort of business checks system also allows you to customize and design personalized business checks according to your requirements and tastes. Summarily, business checks will eliminate the bottlenecks involved with having to organize and keep track of accounting paper records. This will enable you to focus your time and energy on other areas of your business.