In today’s world where everything is based on a debit card, credit card, and online payment, a check is still in use. It is hard to believe that people still use checks. But for large transactions check is the most preferred way for payment due to its several benefits. Whether you are an old school or modern school pass out, a check is something you must learn how to write. In today’s post, we’ll be going to give step by step method to how to write a check.
Put the Date:
The most important element while filling out a check is a date. The date column is available on the top right side. As check been a legal document, make sure to put that date in the column when you have signed the check. If the date is not properly written then it may cause a problem in the near future.
Write Down The Recipient Name:
Never leave the column of the recipient blank. In the “Pay to the Order of” write down the name of a person or organization on whose name payment is to make. Even it is also advisable not to leave the “Pay to the Order of” blank as the blank space can encash the money from your account if the check gets stolen or lost. Even if you are not sure about the exact name of the person, just put “cash” word against the recipient name, but the risk is much higher in this case.
Amount in Number:
Now put the amount in number column. For example, you are making a check for $ 50 dollars then write “50.00”. The dollar and cent numeric value should be clearly visible.
Amount in Words:
Another place where you have to mention the amount in words. If you are making the payment of $50 dollar then mention “fifty dollars even” or just “fifty”. This column is directly below “pay to the order of”.
Mark a Memo:
It is not a mandatory field but it is always advisable to fill it. It helps in keeping the record of why you are making this payment. For example, if you are paying an electricity bill, then mention the electricity bill in the memo column. The memo column is available on the lower-left corner of the check with the word “memo” written.
Put the Sign:
Signature is the most important part of the check as without sign on it, it is not considered valid or complete. The signature column is available on the lower right column of the check. The signed state that you are willing to pay the said amount to the mention payee. I hope the question of how to sign a check is cleared now.
Discussed above were the steps to write a check, but even after writing a check, the following things that you need to keep in mind. Maintain the records
It is very necessary to keep track of all the check transactions by updating the check register. It is always said and advised to keep the record of the check, debit card, ATM transactions or any other payments. It will help you in analysis the exact amount you are spending and helps in plan the future too.
- In order to record the transaction details of check payment, write down the check number available on the top corner of the check. This check number will help you in blocking, missing or any other events.
- The next step in order to record the transaction details is a date. Put the right date and description in the given column of the register.
You can compare your check register with the bank reconciliation statement in order to avoid overdraft charges and frauds.
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Is all Check Clear?
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