While some people think of business checks as an outdated method of payment, they actually bring with them a wealth of benefits. Yes, debit and credit cards, bank transfers and cash may seem like the easiest option at first, but when it comes to it, checks can be just as simple.
We’re going to reveal so of the ways using business checks can benefit your company.
1. Checks Are Safer
A check adds an extra layer of security. Not only can they only be deposited by the person the check is made out to, but they have a range of different security measures in place to make them extra secure. Some of the most secure checks include these great features:
- Heat sensitive icons to prevent photocopying and duplication
- Watermark is present to protect against forgery
- A special coating can be applied to block tampering with your check details
- A security hologram is present to make your check virtually impossible to counterfeit.
2. Business Checks Give You a Paper Trail
As checks are a physical, hard copy form of payment you have a paper trail. This not only makes it easier for you to track your spending, but it can also be useful when you file your taxes. If you want to keep your finances organised, checks are essential as they are one of the best payment methods when it comes to keeping documentation.
3. They Integrate With Your Accounting Software
One of the biggest advantages of using business checks is that they can integrate seamlessly with your accounting software. If your checks and system are compatible with each other, you can scan the check and the system will input all of the information for you, making the financial side of your business much more simplified.
4. Checks Take Time Before They’re Deposited
Another advantage of using checks is that they aren’t deposited straight away. It usually takes a couple of business days to clear from when it has been deposited. This means you have time to check if you have the funds to cover it. You shouldn’t rely on this as how long a check takes to clear can vary, but it’s an option if you’re in an emergency and you know the funds will be available within 24 hours.
5. You Know Who Has Cashed Them
If you need to send a payment to someone in the post, a check is the safest option. There are many reasons why checks can benefit a business, but the biggest and possibly the most attractive reason is because of the data which follows them.
As we have mentioned earlier, checks can only be cashed by the person named (unless it has been signed over to someone else) meaning you know who is cashing it. If the check happens to get lost in the mail, the chance of it getting deposited by a person it wasn’t intended for is very low.