Business Checks

Most people starting small businesses find in beneficial to purchase accounting software.  Whatever accounting software you decide on, you will start to have more organization and increased finance tracking.

No matter where you are in your business, you need a program that will grow with your business.  In the beginning you may be the only one looking at the finances, but if your accounting software has the option of multiple users, all the better.

Check Clearing for the 21st Century Act

Frequently Asked Questions about Check 21

General

1. What is Check 21 and what is its basic purpose?

Check 21 is a federal law that is designed to enable banks to handle more personal checks, and business checks electronically, which should make check processing faster and more efficient. Today, banks often must physically move original paper checks from the bank where the checks are deposited to the bank that pays them. This transportation can be inefficient and costly. Check 21 became effective on October 28, 2004.

2. How will Check 21 make check processing more efficient?

Instead of physically moving paper checks from one bank to another, Check 21 will allow banks to process more checks electronically. Banks can capture a picture of the front and back of the check along with the associated payment information and transmit this information electronically. If a receiving bank or its customer requires a paper check, the bank can use the electronic picture and payment information to create a paper “substitute check.” This process enables banks to reduce the cost of physically handling and transporting original paper checks, which can be very expensive.