Although electronic payments have become increasingly popular, many businesses still use paper checks that can be physically mailed when paying employees and suppliers. In fact, it is estimated that most businesses in the U.S. pay at least half of their bills by check.
With only a few exceptions, writing a business check is very similar to writing a personal check. First, the writer should determine the correct payee name by checking the invoice or by calling the person directly. Making even a slight error can hold up the payment, meaning that the payor will have to reissue the check. It’s also a good idea to write the invoice number that applies to the account in the memo area. Alternatively, if the check is a payroll check, it is crucial to provide the amount after federal, state, and local taxes. Next, the signature must match the one provided by the person who signed the account signature card. If a check requires two signatures, make sure that the other party signs before mailing.
Many business checks come attached to a stub where the payor can record issued payments by writing the amount paid, the name of the payee, and the reason for the payment. If writing a payroll check, the payor will also need to record the gross payment. Keeping these business check stubs organized can make it much easier to report business expenses when tax season rolls around.
Although mailing checks is generally safe, business owners can take additional steps to ensure that important checks arrive at their destinations safely. For instance, choosing the certified mail delivery option allows senders to track their checks or require a signature upon delivery. Business owners also have the option of using a check writing and mailing service that guarantees safe and prompt delivery.
If you find yourself too busy to write checks for payroll recipients or business expenses, you may want to consider using the services of a financial management team that has experience in issuing and mailing checks. If you have questions about the types of services we offer or just need advice on check mailing, make an appointment with a member of the CORE financial team by calling 918-209-3441 to contact our Tulsa office, 405-288-1207 to reach our Oklahoma City office, or 580-353-2376 to speak with one of our Lawton team members.