When you operate your own business, you need to have plenty of financial accountability. You probably use QuickBooks as your accounting software. But how exactly do the checks fit into this system? Checks are an essential part of any accounting system because they help you keep track of exactly how much money you have at any given point. They also prevent someone from stealing from the company, which is always a good thing! Here are some reasons why using QuickBooks compatible checks is so important for your business:
You Can Track Your Cash Flow with Checks
One of the main reasons for using checks is to keep track of your cash flow. If you have a lot of cash in the bank, you can simply write a check to pay the bills. But if you don’t have a lot of cash in the bank, you need to keep track of the bills you are paying so you can record them in your accounting system. This way, you can see if you need to find more cash to pay the bills or if you’re caught up on what you owe.
Checks Help Prevent Fraud
In addition to tracking your cash flow, checks also help prevent fraud. If someone is trying to steal money from your company, they are likely to commit fraud. Fraud is commonly committed by employees or contractors who want to steal money from a company. With checks, you can keep track of exactly who has money from the company at any given time. If someone tries to get around this and give themselves extra money, you can see it right away because the check won’t clear. This makes it much more difficult for people to steal from your company.
You Can Integrate Checks with Your Accounting Software
When you choose compatible checks, you can often integrate them with your accounting software. This means that you can simply scan the check into your software and it will record the payment. It is much easier to enter this information in your accounting software than it is to write down each payment by hand. Once you integrate checks with QuickBooks, you can also create reports based on this data. This allows you to easily see how much you have paid each vendor and how much is still owed. You can also see how much money you have spent overall on any given project.
Checks Allow You to Pay Vendors in a Secure Way
When you write a check, you make a promise to pay the amount on that check. This means that you have to have the money in your account at the time of the check. If you write a check for $500 today, but don’t have the money in the bank, your check will bounce, which will hurt your company’s reputation. When you use a check to pay a vendor, the check is a promise to pay the vendor by writing the full amount on the check and the date. If you don’t have the money in your account when the check is due, you can simply void the check so the vendor doesn’t get the money.
Summing Up
Compatible checks are an essential part of any accounting system. They help you track your cash flow and prevent fraud. You can also integrate them with your accounting software to make your life easier. Checks also allow you to pay vendors in a secure way.
