How to Deposit a Business Check

Effectively managing business finances requires accurate and prompt deposit of checks. A methodical approach helps maintain clear financial records and ensures funds are available for operations. Proper procedures for depositing checks reduce the likelihood of errors and potential delays in accessing funds. Understanding the steps involved in preparing and depositing business checks is important for any business owner or financial manager.

Preparing Your Business Check

Before depositing a business check, proper preparation is essential. Properly endorsing the check is a primary requirement; this involves writing “For Deposit Only,” followed by your business name and bank account number, on the back within the endorsement area. This restrictive endorsement ensures the check can only be deposited into your specified account, protecting funds if lost or stolen.

Verify the check’s details. Confirm the payee name matches your business’s legal name. Check the date to ensure it is current and not post-dated or stale-dated, as banks may not accept checks older than six months. Finally, confirm the numerical and written amounts are identical to avoid processing discrepancies. If using a physical deposit slip, accurately fill in the date, your business account number, and itemize each check by amount.

Depositing Your Business Check

Once your business check is prepared, you can deposit it using several methods. For an in-person deposit at a bank branch, present the endorsed check along with a completed deposit slip to a teller. Obtain a printed receipt for your records.

Depositing via an Automated Teller Machine (ATM) involves selecting the “deposit” option, inserting the endorsed check, and following on-screen prompts. Many ATMs also require a deposit envelope, though newer models may not. Always retrieve and retain the ATM receipt as proof of the transaction.

Mobile deposit through your bank’s smartphone application offers convenience. This method requires opening the app, navigating to the deposit feature, and taking clear photos of both the front and back of the endorsed check. Ensure all four corners are visible and the image is not blurry. Input the check amount and select the correct business account for the deposit before submitting. Some mobile deposit systems require writing “For Mobile Deposit Only” along with the endorsement.

For mail deposits, place the endorsed check and a completed deposit slip into a secure envelope. Mail it to the bank’s designated deposit-by-mail address, found on your bank statements or website. For high-value checks, consider using a trackable mail service for added security.

Confirming Deposits and Accessing Funds

After depositing a business check, verify that the funds have been credited to your account. You can confirm the deposit by checking your business’s online banking portal or mobile application. Retaining all physical receipts from in-person or ATM deposits, or digital confirmations from mobile deposits, provides a record for reconciliation.

Understanding when deposited funds become available is important. Banks operate under the Expedited Funds Availability Act, which sets guidelines for how quickly funds must be made available. While some funds might be available the next business day, larger amounts or checks from different banks may be subject to longer holds. Banks are required to disclose their specific funds availability policies.

Maintain detailed records of all deposited checks, including the amount, date received, date deposited, and payor. These records are useful for reconciling bank statements, preparing for tax filings, and internal auditing. Consider scanning or photocopying checks before depositing them to create digital backups.