While there are a number of tools available to make and receive payments, there is something timeless about a paper check that makes it an effective part of today's economy. If you have a smaller business, checks may actually be more affordable to use than other tools as there are typically few or no fees associated with using them. Here are four reasons why checks are a necessity for a business to have on hand.
1- Keep Track of Your Transactions
One of the best reasons to use a paper check is that it gives you an opportunity to keep track of each transaction that you make in real-time. Whenever you write a check, you'll need to put it on your ledger to ensure that have an accurate tally of how much is in your account. When you receive a payment, you can also record it by hand to ensure that you're engaged with your business account. Of course, your bank or credit union will also keep track of how much is in your account immediately after a payment is received.
2- The Checks Themselves Are Easier to Keep Track Of
A paper check may actually be easier to keep track of than your debit card or other tools that you use to complete transactions. This is because it will usually come bound with other checks in a small book that you can carry in your briefcase or purse. Therefore, your checkbook is less likely to be lost or stolen without you realizing that anything is amiss. Of course, as with a debit card, any funds that are taken from a checking account via a forged or otherwise illegitimate check could be lost forever.
3- Keep a Paper Trail If a Dispute Arises
If a customer, employee, or other party claims that payment was never received, you can use your checkbook as evidence that payment was issued. In fact, it may be possible to use a copy of the check that you wrote as evidence that payment was made. At worst, you may be required to write another check if it can be shown that the original was lost or otherwise not cashed. However, you wouldn't be out any money because the first check would be voided or canceled, which means that it can't be cashed.
4- Checks Can Be an Easy and Powerful Branding Tool
Most banks or financial institutions that issue checks will allow you to customize their overall look and feel. This means that you can make branded payments that include your name, address, and logo. Including brand information on your checks may be especially effective if you are a contractor who works mostly with private clients as it gives you a subtle way to keep your company in their mind.
The use of paper checks can be a great of ensuring that payments are made in a timely and affordable manner. Whether you are a sole proprietor who uses checks to pay for goods related to side hustle projects or a seasoned professional, they can make it easy to stay on top of your business finances.
