{"id":2496,"date":"2024-08-16T10:53:55","date_gmt":"2024-08-16T18:53:55","guid":{"rendered":"https:\/\/blog.checkworks.com\/?p=2496"},"modified":"2024-08-16T10:55:03","modified_gmt":"2024-08-16T18:55:03","slug":"using-checks-to-manage-cash-flow-for-small-businesses","status":"publish","type":"post","link":"https:\/\/blog.checkworks.com\/index.php\/using-checks-to-manage-cash-flow-for-small-businesses\/","title":{"rendered":"Using Checks to Manage Cash Flow for Small Businesses"},"content":{"rendered":"\n

Paper checks aren\u2019t going anywhere despite the rise in digital payment methods. In fact, a recent survey shows that 81% of businesses<\/a> still pay other firms using paper checks. Despite the many reasons why companies continue to accept and make payments with checks, one of the most significant advantages is that it can help them better manage their cash flows. Below, we\u2019ll explain how. <\/p>\n\n\n\n\n\n\n\n

Better Visibility into Transactions<\/h2>\n\n\n\n

Using paper checks provides a clear record of transactions, including the payment amount, dates, and recipients. This makes it easier to reconcile accounts and track expenses, adding transparency to your financial management practices.  <\/p>\n\n\n\n

If you use multiple credit cards and have automatic bank transfers paying for certain services, it can be more challenging to understand where all your funds are going. But, when you make payments with a paper check, your transaction data is consolidated and easy to track with one convenient paper trail. <\/p>\n\n\n\n

Easier Payment Timing<\/h2>\n\n\n\n

Business owners can postdate checks, meaning you write a check now with a future date posted. This can help you time outgoing payments with incoming funds to maintain consistent cash flows. <\/p>\n\n\n\n

For instance, maybe you receive a bill from the utility company with a payment due on the 30th of the month. Even if it\u2019s only the 15th, you can write and send a check with the due date instead. This way, you can ensure on-time payments but avoid an immediate cash outlay. <\/p>\n\n\n\n

In contrast, many electronic payments are processed automatically, which gives business owners little control or flexibility over when the funds leave their accounts. <\/p>\n\n\n\n

No Credit Card Fees<\/h2>\n\n\n\n

By now, you know it\u2019s beneficial to your cash flows to make payments with checks, but it can also help to accept them as a form of payment. <\/p>\n\n\n\n

According to Bankrate<\/a>, the average credit card processing fee merchants pay is 1.5-3.5%. This is an unavoidable fee that cuts into your profits if you accept credit card payments. So, accepting checks as a form of payment from customers and clients supports more robust cash flows. <\/p>\n\n\n\n

Especially if your business has low margins already, you know that every percentage point counts. This might be part of the reason why 55% of small businesses in the country don\u2019t accept credit cards, as reported by Forbes<\/a>.<\/p>\n\n\n\n

Fraud Prevention Features<\/h2>\n\n\n\n

Business checks<\/a> are often equipped with a number of security features, helping prevent the risk of fraudulent payments that could negatively impact your cash flows. For example, checks can be made with chemically sensitive paper, which prevents recipients from altering the value of checks without your knowledge. <\/p>\n\n\n\n

In addition, there may be very light micro-printing on the check that is nearly impossible to replicate accurately with a scanner or printer. This way, you can prevent fraudsters from duplicating your checks to make multiple deposits. <\/p>\n\n\n\n

In summary, checks enable businesses to accept payments at any time, anywhere, without requiring internet access or an electronic payment gateway. When using checks, business owners can have greater visibility into their spending, avoid payment fraud, and time payments as needed to support consistent cash flows. <\/p>\n\n\n\n

\n\n\n\n\n
<\/div>

MBA, MAcc, CPA<\/strong>
Chief Financial Officer and General Manager<\/strong><\/p>

Adam Blair<\/a><\/p>

Adam Blair is a certified CPA who began his career with Ernst & Young focusing on Manufacturing, Retail, and Distribution clients. He graduated from Samford University with a Master of Business Administration in Accountancy and successfully passed the Certified Public Accountancy exam. After several years in public accounting, he accepted an opportunity to work for a technology start-up, MedMined, that was later acquired by Cardinal Health.\r\n\r\nAdam has served several retail businesses as an accountant and business partner in various roles. Today, he serves as the CFO of Main Street, Inc (a parent company of CheckWorks). As the resident financial expert at the company, he believes successful businesses take great care of their customers and focus on building a team of happy employees.<\/p><\/div><\/div>","protected":false},"excerpt":{"rendered":"

Paper checks aren\u2019t going anywhere despite the rise in digital payment methods. In fact, a recent survey shows that 81% of businesses still pay other firms using paper checks. Despite the many reasons why companies continue to accept and make payments with checks, one of the most significant advantages is that it can help them […]<\/p>\n","protected":false},"author":15,"featured_media":2503,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[81,5,11,31,1],"tags":[8,177,10,38,21],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/blog.checkworks.com\/index.php\/wp-json\/wp\/v2\/posts\/2496"}],"collection":[{"href":"https:\/\/blog.checkworks.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.checkworks.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.checkworks.com\/index.php\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.checkworks.com\/index.php\/wp-json\/wp\/v2\/comments?post=2496"}],"version-history":[{"count":4,"href":"https:\/\/blog.checkworks.com\/index.php\/wp-json\/wp\/v2\/posts\/2496\/revisions"}],"predecessor-version":[{"id":2502,"href":"https:\/\/blog.checkworks.com\/index.php\/wp-json\/wp\/v2\/posts\/2496\/revisions\/2502"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.checkworks.com\/index.php\/wp-json\/wp\/v2\/media\/2503"}],"wp:attachment":[{"href":"https:\/\/blog.checkworks.com\/index.php\/wp-json\/wp\/v2\/media?parent=2496"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.checkworks.com\/index.php\/wp-json\/wp\/v2\/categories?post=2496"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.checkworks.com\/index.php\/wp-json\/wp\/v2\/tags?post=2496"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}