Paper checks are becoming less common in the world of finance. More people are using credit and debit cards and online payment apps to pay for goods and services. However, a restaurant should use paper checks for these six specific purposes.
1. Vendor Payments
While most vendors accept payments via mobile banking apps and credit and debit cards, some still prefer paper checks. In fact, paper checks provide restaurant owners and vendors alike with a physical document that serves as proof of payment.
Mobile apps and banking websites sometimes crash or go down for hours at a time. Hackers and identity thieves steal online records. Rather than risk conflict about whether or not a vendor received payment, a restaurant owner should use a paper check to pay for supplies and inventory.
2. Employee Payroll
Many businesses today also increasingly pay their employees via direct deposit. However, as with banking and mobile payment apps, direct deposits are vulnerable to glitches and hacking.
Direct deposit also costs employers money to use to pay employees. Restaurant owners can save time and hassle by using paper checks for their employee payrolls.
3. Rent or Lease Payments
A paper check likewise serves as a physical record of a restaurant owner paying the landlord for that month’s rent. Lost online records or glitches with mobile apps leave restaurant owners vulnerable to late fees and possible evictions. Rather than risk any question over whether or not they paid their rent, they can use paper checks for their lease or rent payments.
4. Large or One-Time Payments
Large purchases, such as those for new kitchen equipment or furniture, call for the use of paper checks. If restaurant owners use debit or credit cards, they could risk having a hold put on their bank or credit accounts.
They must then wait for the payments to clear before they can secure the needed large ticket item. Rather than wait for a hold to clear, they can write paper checks for large and one-time purchases.
5. Refunds or Reimbursements
If restaurant owners owe customers, vendors, or employees refunds or reimbursements, they should use paper checks for this purpose. Again, the paper check serves as a physical record that the restaurant owner paid that obligation. It eliminates the possibility of the owed person coming back and saying they never received payment, especially if that person already endorsed and deposited or cashed the check.
6. Government or Tax Payments
Paper checks likewise eliminate any confusion or question about whether or not the restaurant owner paid their quarterly taxes on time. While the federal government accepts credit and debit card payments, it is often better to write and mail a check. There is less risk of the payment getting caught up in a system glitch and the restaurant owner’s account not being credited.
These six purposes are some for which restaurant owners should write paper checks. The checks provide physical proof that the owners issued payments. They also minimize the risk of payments getting lost or delayed because of glitches or hacking. No matter why you decide, every restaurant should have some paper checks on hand.