Types of Business Checks | Small Business

Business checks are the medium companies use to purchase goods and supplies for their operations. Almost all businesses use some form of a business check; these checks are usually linked to a business checking account at a local bank. Business bank accounts may have more fees associated with them than a personal banking account. However, business checking accounts may also have a few more benefits than regular checking accounts, such as interest earned on daily balances or bonuses for maintaining a minimum checking account balance.

Wallet Checks

Wallet checks are similar to personal bank account checks; companies may customize their wallet checks with a business logo or name. Wallet checks are usually the quickest and cheapest way to obtain business checks since they are the most common form of check provided by banks. If the company chooses to customize their business checks, the bank will offer the company a set of starter checks until they receive the official business checks. Duplicate business checks are also available so companies can have a record of their payments made by written check. Duplicate checks help companies maintain their business and accounting records for financial or tax purposes.

Three-to-a-Page Checks

Three-to-a-page checks are another common type of manual business check. These checks usually have a business stub on the left hand side of the page of checks. The check stubs are used to record information regarding purchases made by the business owner or manager. Business owners usually turn these check stubs into accounting so the information can be recorded into the company’s accounting ledgers. Companies may also use the check stubs as proof of written payments for official business or legal purposes. While these checks are a bit more expensive than wallet checks, they offer more functionality for businesses needing to keep an accurate record of business purchases.

Computer Checks

Computer checks are used with the company’s business or accounting software. Companies may use computer checks if they have a high volume of payments each month in their business. Payment information is entered into the company’s computer system and then computer check is printed out on a local printer; this method creates multiple business checks at one time with the least effort possible. Computer business checks can also be customized to the company’s business or accounting software system and include the company’s logo or other business information. Computer checks are often found in larger businesses with large accounts payables batches or that need computer checks for processing payroll checks.

Source Article