How to Print Checks for Small Business

Printing checks in-house offers small businesses greater control and efficiency in financial operations. This approach provides immediate access to checks, reduces reliance on external services, and can lead to cost savings for businesses with consistent payment volumes. In-house printing streamlines payment processes, offering more flexibility than ordering pre-printed checks or relying solely on electronic methods. It integrates directly with a business’s accounting workflow, allowing for on-demand check generation.

Essential Components for Check Printing

Establishing an in-house check printing capability requires several specific components to ensure compliance and security. A business needs specialized software, a compatible printer, the correct toner, and secure check stock.

Software

Accounting software or dedicated check printing solutions form the core of an in-house system. Many popular accounting platforms include check printing functionalities, allowing for seamless integration with existing financial records. When evaluating software, consider features like banking integration, comprehensive payee management, and options for customizing check templates. Some software offers advanced features such as positive pay integration or batch printing capabilities for high-volume needs.

Printer

A laser printer is necessary for check printing, as opposed to an inkjet printer. Laser printers are compatible with Magnetic Ink Character Recognition (MICR) toner, which is crucial for printing the unique characters at the bottom of checks. The durability and precision of laser printing help ensure printed checks meet banking standards for processing.

MICR Toner

MICR toner contains iron oxide particles, making the printed characters magnetic. This magnetic property allows high-speed bank readers to accurately process routing, account, and check numbers. Without MICR toner, checks may be rejected by bank processing systems, potentially incurring fees or delays.

Blank Check Stock

Blank check stock includes various security features to deter fraud. These features can include watermarks, microprinting, chemical-reactive paper, toner grip technology, and security borders. Using high-security blank stock helps protect against alterations and counterfeiting. The stock is typically available in formats that allow for a check, and often a voucher or stub, to be printed on a single sheet.

Bank Account and Routing Numbers

Accurate bank account and routing numbers are fundamental to the entire process. These numbers must be precisely entered into the printing software. These details are printed in the MICR line and are essential for banks to identify the originating account and facilitate proper fund transfer.

Setting Up Your Check Printing System

Configuring a check printing system involves several preparatory steps within the software and hardware to ensure accurate output. Proper setup prevents errors and streamlines the printing process.

Software Installation and Bank Details

Install your chosen accounting or check printing software. Input your bank account details, including the routing and account numbers, into the designated fields. This information is fundamental for the software to correctly generate the MICR line on each check. Some software allows for managing multiple bank accounts, requiring careful selection of the correct account for each payment.

Printer Configuration

Configure your printer settings to optimize for check stock. This involves selecting the appropriate paper type, such as “check paper” or heavy cardstock, and specifying the correct paper tray. Adjusting orientation settings, such as portrait or landscape, ensures the check prints correctly on the stock. Proper printer configuration is essential for accurate alignment of all printed elements on the check.

Check Template Customization

Customize the check template within your software to align with your blank check stock. Software usually provides various templates; select one that matches your stock’s layout. This customization involves adjusting the positioning of fields like the payee name, amount, date, and memo to ensure they print precisely within the designated areas on the check. Some software allows for adding company logos or other branding elements.

Test Prints

Before printing on valuable check stock, perform test prints on plain paper or inexpensive blank stock. This step allows you to verify that all elements, including the MICR line, payee information, and dollar amount, align correctly. Hold the test print up to a light with a blank check to check for precise alignment. Adjustments to alignment can be made within the software’s printer setup or alignment utility until the test print is perfect.

The Check Printing Process

The check printing process involves a series of sequential actions within the configured system, culminating in the physical production of the check. Each step ensures the accuracy and validity of the payment instrument.

Entering Payment Details

Enter the payment details into the software’s interface. This includes the payee’s full name, the exact payment amount, the date of the check, and any relevant information for the memo line. Accuracy at this stage is important, as these details directly populate the check and form the basis of the transaction record.

Selecting Bank Account

If your business manages multiple bank accounts within the software, select the specific bank account from which the check will be drawn. This step is important to ensure the correct routing and account numbers are used for the payment. Confirming the source account prevents misdirected payments or reconciliation issues.

Previewing the Check

Before initiating the print command, utilize the software’s preview function to visually inspect the check. This preview provides an opportunity to confirm that all entered details are accurate and that the information aligns correctly on the virtual check template. A thorough review at this stage can identify potential errors, such as misspellings or incorrect amounts, before physical printing.

Printing the Check

Once satisfied with the preview, send the check to the printer. Ensure the correct blank check stock is loaded into the designated printer tray. The software then transmits the data to the printer, which uses the MICR toner to print the magnetic ink characters and standard ink for other details.

Troubleshooting Common Issues

Should common issues arise during printing, such as misalignment or blank checks, address them systematically. For misalignment, re-check the printer’s paper tray settings and the software’s alignment configurations, adjusting in small increments. If checks are blank, verify the printer has sufficient toner and that the paper is loaded correctly. Most software includes troubleshooting tools or guidance for these situations.

Managing Printed Checks and Records

Proper management of printed checks and associated records encompasses administrative and security protocols. These practices ensure financial integrity, aid in reconciliation, and protect against fraud. Consistent adherence to these guidelines is important for a business’s financial health.

Recording Checks

Accurately recording each printed check in your accounting software or ledger is a fundamental practice. This involves documenting the check number, date, payee, amount, and the purpose of the payment. Maintaining detailed records ensures that all transactions are traceable and provides the necessary data for financial reporting and analysis.

Reconciliation

Reconciliation is the process of comparing your internal records of printed checks with your bank statements. This monthly activity verifies that all issued checks have cleared the bank, identifies any outstanding checks, and helps detect discrepancies or unauthorized transactions. Regular reconciliation is a cornerstone of sound financial management, ensuring the accuracy of cash balances.

Secure Storage

Secure storage of both blank check stock and printed, unsigned checks is paramount to prevent theft or misuse. Blank stock should be stored in a locked cabinet or secure location with restricted access, akin to safeguarding cash. Similarly, printed but unsigned checks should be kept in a controlled environment until they are signed and distributed. This minimizes the risk of unauthorized check issuance.

Voiding Procedures

Should an error occur or a check become unnecessary, proper voiding procedures must be followed. This typically involves physically marking the check with “VOID” across its face to prevent it from being cashed. Additionally, the check must be recorded as voided in the accounting system, noting the reason for voiding. This ensures the check number is accounted for and maintains an accurate audit trail of all issued and unissued checks.