Monday, November 7, 2011
If you own a small business, then you need to use custom business checks as a method to manage your financial needs
and make payments for business expenses. There are many advantages to using business checks that you should consider. Legitimacy Even if your small business is a sole proprietor entity, using business checks can help lend your business an air of legitimacy that personal checks do not. When conducting business transactions, many companies and people prefer to work with businesses that have all the marks of being a real business and not someone’s hobby. These days, people are also highly suspicious of potential “scam” businesses. Using business checks provides one more layer of legitimacy that you will not have if you only use personal checks for financial transactions. Appropriate Financial Practices Another benefit to using business checks is that a business checking account allows you to keep your personal expenses separated from business expenses. Even if your business is a sole proprietorship, best financial business practices are that you keep business finances separated from personal finances. This makes bookkeeping and accounting much easier. Also, it makes tax reporting much more simple. A Business check also gives you the ability to provide more information for business transactions than personal checks. Pay stubs allow you to be able to provide information such as employee payroll details, invoice numbers, order numbers, purchase order information and even contact information for transactions. Providing detailed payment information on check stubs can make financial transactions much more simple and easy to track, both for your business and for the vendor or employee you are paying. For tax purposes, business checks can also be extremely helpful. Not only can they provide you with a paper trail for your deductions and financial transactions, but they can also work in conjunction with many popular business accounting software programs. As a result, when you issue a check, it is not only deducted from your business checking account, but the transaction is also correctly posted to the correct business account. This allows you to keep your books balanced much more easily than doing it by hand or mixing your business financial transactions with your personal finances. Security One advantage of using business checks is that they are much more secure than personal checks. Checks for business accounts do not have your personal account information or contact information on them. Everything that is on the financial document is related to your business. Often, there are even stronger security measures built into checks than are available for personal checks. Frequently, other businesses and financial institutions insist that checks from businesses must be computer-printed or typed instead of handwritten. This additional layer of security can protect you from counterfeit check-writers or from anyone attempting to steal money from your business bank account. There are many benefits and advantages to using business checking. No matter how you look at it, if you own a small business, then it is crucial that you use business checks for your financial transactions.