Cheques are becoming less common now. But not uncommon enough. Here are 5 reasons to wean your business from the cheque addiction (for those still afflicted) …
Reason No. 1 – Con Artists
Cheque fraud is bigger than online fraud by a country mile. A cheque circulates in physical reality. Thieves can acid wash your cheque, print their name on it, and cash it.
Reason No. 2 – Cost
The Canadian online bill payment service we use is inexpensive. Yet I have had business owners balk at the price. It is about $1.50 per payment for 20 payments.
A stamp is $1.07 now. Then there is the paper and envelope.
How about the time to print, get a signature or two, and stuff the envelope?
Then your bookkeeper has to record that cheque in the accounting system.
This adds up to $20 or more per cheque.
Check out this article on the true costs of cheques:
The Hidden Cost of Check Payments
Reason No. 3 – Convenience
When you need two signatures, and one person is away what do you do?
Mail it from person to person? Yikes! With Canada Post that could take weeks. Courier? Please see reason 2 above.
Some people pre-sign cheques when they will be away to avoid this problem. This opens up fraud. Please see reason 1 above.
Reason No. 4 – Covid
With Covid, the rules of engagement have changed. Your office may be closed. Where are the cheques? Can your bookkeeper get into the office? Yes?
Great! How about the signers? Both of them? Are all three working from the same office?
You get my point…
Reason No. 5 – Controls
With a solid online bill payment service, you set an accounts payable approval matrix. Vendor bills can be routed to as many people as you like, working from as many places as you can imagine.
This makes for a great audit trail. You can see each person who approved the payment.
Oh, and a really cool feature – you can see the actual vendor bill attached for easy reference!
So, what are you waiting for?
Want to know what we use? Kindly email me, and I will let you know…