This guide outlines why using checks with a business logo still has advantages in the digital age.
Even though a lot of business owners prefer to use their credit cards or online money transfers to make business payments, some owners still favor the use of checks, particularly as it allows them the option of extra marketing by creating a logo.
The reason for their continued use is that there are many added advantages of using them as a payment method such as creating a logo on them that reinforces your branding. Many retailers also accept them as a form of payment for customers, as it gives the customer a choice of an additional payment method.
Senior customers and business associates prefer checks because they are familiar and comfortable with check transactions. Businesses often have to pay a fee when they accept payments via debit or credit cards, which is not the case for accepting check payments. Here are a few more advantages of using company checks with logo over other forms of payments.
Easier to track expenses
One of the most necessary factors for a prosperous business is the proper management and accountability of expenses. These days most accounting software packages have an option to enter check details or scan checks. That helps a business to keep a better track of payments and expenses. That’s why it is better to use company checks rather than personal checks for making payments related to the business, such as paying vendors, employee salaries, and bills for utilities.
While calculating total expenses, the accounts department needs to use the check related filters in the software to sort out the details of the payments made by checks as well as the total amount paid. Use of business checks also aid in keeping personal, and business expenses separate, which make it easier to calculate taxes. In case of an unfortunate tax audit of your business, using company checks for making payments can help in giving a clear picture to auditors and thus reduce the headaches.
Sense of professionalism
No matter how big or small the business is, it is always in the best interest of owners to make their businesses look professional with a logo. Using personal checks for making payments can add a professional outlook for the firm. Even though many people might consider it a matter of perspective, business checks have the potential to create a positive impression in the eyes of a client.
The presence of a logo with the business details can convey a message of seriousness for the business. The logo will also enable your checks to serve the function of a marketing tool in the hands of a prospective customer or business associate.
Processing charges
As we had pointed out earlier, businesses have to pay a processing charge when they accept payments via debit or credit cards. Similar deductions are also applicable at times when vendors or business associates accept payments from the company. Most of the time these charges are transferred over to the vendor.
However, paying by company checks can help you save your vendor from these additional and undue expenditures. They are not only accepted by all kinds of financial institutions, but they are also very cheap compared to the charges associated with electronic forms of money transfers.
E-Checks are Faster
In the earlier days, paper-checks used to take a lot of time to be processed, which is why they were not preferred or accepted by many businesses. Not only did they need to be deposited physically, but there was also a delay in the transfer of funds from one account into the other. However, those days are long gone, and now every bank has a mobile app with provision to turn any check into an electronic check.
The recipient of the checks needs to scan it through the mobile apps, which turn the paper check into an e-check, and the payment is electronically transferred from the payer’s account into the payee’s account.
Checks are still preferred
A lot of baby boomers and gen-x people are still not entirely comfortable using the technologically advanced forms of money transfers. They still prefer to use cash and checks. Having business checks gives an advantage when making payments to such individuals. In some cases, making a payment this way is even faster than electronic methods, since one can save the time needed to enter the account details of the recipient.
Using them for business purposes might seem to be an old school method, but in certain situations, checks can prove to have many more advantages than any of the new age payment methods. As they say, there’s no school like the old school.
