Thursday, September 5, 2013, AM | Leave Comment
If you’re wondering why cooperate firms needs personal checks, well there are many reasons for it, and if you’re into this kind of business, it’s essential you know all the facts because it can save you a lot of trouble later on. During this time when it seems like almost all transactions are being done online, is there still room for checks?
The answer is yes, there is room for checks, chiefly because not all transactions are done online, no matter how much they’re being played up by the media. As the following will show, there are many cases where checks are more sensible.
Keep Transactions Smooth and Clear
One of the reasons why checks are preferable is it helps keep your transaction clear and clutter free. You can for instance, keep separate records for your personal and business checks, giving you a bird’s eye view of how your spending is going with regards to business and personal expenses. By keeping your financial records in a checkbook, you’ll be able to keep track of your finances.
To look at it another way, having a record of all your personal checks will make it easy during tax season to sort out all the details. Having hard copies of everything will make it easier for you to prove your point in case there’s a problem or misunderstanding concerning your tax records, bank statements or a business transaction.
This is very difficult to do if you pay for everything via credit card, and it also goes without saying that keeping track of your finances is harder because of the “buy now, pay later” setup. While that seems very convenient, it makes financial record keeping difficult.
Checks are a Hallmark of Professionalism
Personal checks have been around for a long time, and they’re more widely accepted than other payment methods like credit or debit cards. Whether it’s a personal or business check, using it to pay for something, making it part of the financial transaction, will be taken as a sign of professionalism. When you pay for items using your own check, it goes to show that you’re flexible and not overly dependent on the Internet or credit cards.
Easy Finance Management
As your firm grows, the need to better closely manage your finances increases. The fact of the matter is, the profits pulled in have to be handled separately from other income sources that you may have. By issuing checks and using a checkbook, you’ll have no trouble keeping track of your business expenses, and you can also use a checkbook to assess your spending habits.
It’s true you can also do this online, but it is far more convenient to use checkbooks because depending too much on the Internet can have disastrous consequences if for example, you need to access your records and you can’t get online.
Other Reasons Why Checks are Essential
As any businessman will tell you, checks are much safer to send by mail compared to cash. Unlike cash, you can wrap a check in paper and conceal it, and it isn’t as conspicuous as cash. Another thing that should be noted is that it’s far easier to register and compare records of purchases when made with checks than credit card. Credit cards, while “faster”, doesn’t make it easy for you to scrutinize the details.
And finally, it should be pointed out that checks serve as your “proof” that you did indeed pay for this and that, and you just need to show the check from your bank statement. As these facts show, checks can and are still being used, and you can get them at Cheap Checks Plus Checks Online.
Randy P. Cheatham has been working in the banking and finance industry for more than 25 years, and has written extensively about why cooperate firms need to use personal checks. Randy has his own blog where he writes business and finance tips. He lives in Dallas, Texas.