How to Fill Out a Business Check Step-by-Step

Business checks are financial instruments that facilitate payments from a company’s bank account. They are a common method for businesses to manage cash flow, pay vendors, compensate employees, and fulfill operational expenses. Unlike personal checks, business checks often incorporate features tailored for commercial use, such as larger memo areas and enhanced security measures. This guide provides clear instructions on how to accurately complete a business check.

Before Writing Your Business Check

Before writing on a business check, gather all necessary information. This includes the recipient’s legal name, the precise numerical payment amount, the current date, and a brief description for the memo line detailing the payment’s purpose, such as an invoice number or expense category.

Familiarize yourself with the layout of a standard business check. Key areas include the date line, the “Pay to the Order of” line for the payee, the numerical amount box, the written amount line, the memo line, and the signature line. Each check also features a pre-printed check number, along with the business’s routing and account numbers, which are unique identifiers for the financial institution and the specific checking account. Always use a pen with blue or black ink, as these colors are more legible and resistant to alteration, helping to prevent fraud.

Step-by-Step Check Writing

Begin by writing the current date in the designated date line. This date indicates when the check was issued and can be cashed or deposited. Next, write the full legal name of the payee on the “Pay to the Order of” line. For businesses, use their complete registered business name.

Proceed to the numerical amount box, where you will write the payment amount in figures. Start the numbers as close to the left side of the box as possible to prevent unauthorized additions. For amounts with cents, include the decimal point and cents (e.g., “150.50”).

Following this, write out the payment amount in words on the line below the payee name. This should match the numerical figure exactly. For instance, “One hundred fifty and 50/100.” Fill any remaining space on this line with a continuous line or “only” to prevent alterations.

The memo line, usually found in the bottom left corner, is used to specify the purpose of the payment. Although this line is not legally binding for the bank, it is important for your internal record-keeping and for the payee’s accounting. Include details such as an invoice number, account number, or a brief description like “Rent for May” or “Consulting Services.”

Finally, sign the check on the signature line. Only an individual authorized by the business should provide the signature. Review all filled-in fields before signing to ensure everything is correct.

Recording and Securing Business Checks

After a business check is filled out and signed, immediately record its details in a check register or accounting software. This record should include:

• Check number
• Date
• Payee’s name
• Exact amount
• Purpose of payment

Maintaining a detailed check register provides a real-time overview of your account balance and helps track expenses, manage cash flow, and prepare for tax season.

If an error is made while writing a check, void it properly to prevent misuse. Write “VOID” in large, clear letters across the entire front of the check using blue or black ink. Record the voided check’s number in your register to maintain the sequence and note that it was voided. Properly dispose of voided checks by shredding them.

Secure storage of unused checks is important to prevent theft or unauthorized use. Treat blank checks like cash and keep them in a locked drawer or safe. Regularly reconciling your check register with your bank statements helps identify discrepancies, detect potential fraud, and ensures your internal records align with the bank’s records.