Many companies are choosing to supply their employees with business checks rather than a company-owned credit card for their travel expenses. Business checks benefit the company financially and are convenient to use.
are checks that can be written out to local businesses in lieu of a personal check or a company-owned credit card. For example, if a company employee needs to pay for a lunch while on a business trip, they can write a check with the name and address of their employer on it, instead of paying with personal check or cash and then requesting reimbursement from their company.
Anyone who works for a company which issues business checks can make this type of payment. Most often, business checks are given to executive employees or employees who travel frequently for business.
Business checks benefit the company because they are very inexpensive to issue. They may be less expensive than supplying all employees with separate credit accounts, as the company can often print checks using their office printers. Sometimes a business can receive free checks through their bank, depending on the type of checking account they open.
Business checks are also economical for businesses to use because the only expense is the cost of the actual transaction. When using a credit card, sometimes annual fees need to be paid to the credit card company. Also, an unpaid credit card bill can accrue interest which is then added to the principal balance. If this happens periodically, credit card accounts can be much more expensive than anticipated.
Employees who use business checks are more likely to be trusted by store owners while traveling. Most of the time, businesses only accept checks from patrons who are local and can provide a local address and telephone number on their check. Personal checks from distant places are suspicious to many store owners, and presenting a reliable and verifiable business check helps to make the check more widely and graciously accepted. Because the funds are backed by a business account, there is very little danger of the account going into an overdrawn status.
Business checks are convenient for the company issuing them, as well as the employee who uses them. Some companies ask their employees to personally pay for expenses, and then be reimbursed after their business trip. This is inconvenient for the employee because they could be charged interest on their credit card while they are waiting for their company to reimburse them. This interest is often not reimbursed by the company. Business checks are convenient for the company also because it makes doing taxes and keeping track of expense accounts easier than collecting all the individual receipts for reimbursement from their employees’ business trips.
Though many companies are choosing to provide their employees with company credit cards, or simply reimbursing expenses at the end of a business trip, many are seeing the benefit of trying business checks. Business checks are both economical and convenient for employers and employees alike.