Is Really Worth Spending Money on Business Checks?

Yes! A business owner needs to know how to separate his company’s business from his personalized business.

A business owner’s employees know that they can only use business checks for company use. Even sole ownership or a small staffed company requires a way to differentiate from tracking their company’s income (earnings) and outcome (e.g. staff’s salaries); and of one’s personalized income and outcome (e.g. spendings, bills, groceries, and educational needs). They, therefore, maintain a clear delineation between a personal and business image.  

What are the differences between personal checks and business checks?

In basic terms, personalized checks are connected to the individual’s bank account, and business checks are connected to the business’s bank account. Separate your finances in order to organize your different life expenses. Business checks also demonstrate their communal, professional image. Personalized checks are the size of US paper currency, and business checks are larger. Personalized checks usually have cute designs or with a special statement. Business checks usually have a design that is simple, functional, and in keeping with a company’s professional image. The business check’s larger size allows them to display the company logo. Businesses are required to protect their documents, company, and clients from fraud, and the business checks will often have security measures, such as watermarks, void indication, chemical removing fiber, etc. Business checks can provide larger space and more lines to put company information or additional information messages; these aren’t often on personalized checks. Personalized and business checks require clear delineation between their different uses and representations. 

Why are business checks essential?

For a modern company, business checks are essential to the office and to present professional representation and legitimacy for the company. A business needs to start branding with its company name, address, and logo (which they can post their logo on their business check!) for a professional persona to their vendors and clients. It will help when they work with a bookkeeping company when tax season comes around, and to protect their company security from fraud.

What happens if the business owner uses the business earnings for their personalized expenses? 

If a business owner uses a business checking account for personal use as the sole owner of the company, it is not a crime. If their company becomes a partnership company, it can be a bad idea to use company funds for personal expenses, because you might be using your partner’s share of the profits and then ultimately dissolve the partnership.

During tax season, separate checks and bank accounts will make filing much easier. If you don’t have a separate business account, you may have difficulty persuading the IRS which are your business expenses versus your personalized expenses. The bank accounts need to be kept separate because two separate checking accounts will prevent intermingling your finances.

When can business issues become personal?

Sole ownership or a partnership business will render you and your business legally one and the same, where your business debts become your debts as well. Your partner’s and employee’s negligence will put you and your assets at risk. 

A Limited Liability Company (LLC) limits blame against you because you don’t own the company. Outside of you are the LLC’s responsibility of debt, and your assets (e.g. home and bank account) can’t be touched used to collect on business debts. Your assets are then also protected if an employee, business partner (e.g. fraud), or the business itself (e.g. bankruptcy) is sued for negligence. 

What kind of business check should I order?

To choose which type of business check you should order, you as the business owner must define the kind of company that you have and take stock of how the business works daily. For example, a business owner may need executive deskbook checks for seamless transactions and security features to protect client and company confidentiality. If someone needs a traditional handwriting check and more space for information on their checks for the company’s information, they need manual checks. For a business owner always on the go, they may need a pocketbook that offers less space, a professional protected checkbook cover, and deposit slips. Buying checks for business use requires more research from the business owner.

In conclusion, successful personal finance precedes improved business finance and a professional world of business checks. As an entrepreneur, a business check will keep your expenses recorded and finances organized, and this will save you time and stress down the road.