How to write a business check: A step-by-step guide

As a business owner, you have a few options for making payments. One of the most reliable is writing a check that directly withdraws funds from your business bank account. Business checks are a great way to track the money going in and out of your account. On top of that, checks are more secure than paying with cash and can add a professional touch to your business transactions. 

If you’re new to writing business checks, here’s a step-by-step guide to help you understand the key parts of the process and how to properly fill out a business check.

What you’ll learn:

• Business checks include information like your business name and address, the financial institution associated with your account, and the account and routing numbers. 

• Several parts of a business check need to be filled out, including the payee information, payment amount and signature line. 

• Using checks to manage business payments can help you keep accurate financial records for your company.

Business checks can be used to manage expenses like payroll or payments to vendors and suppliers. Checks can be especially useful when paying vendors or suppliers that don’t accept credit cards or digital payments. 

If you’ve used personal checks before, you’ll see that business checks have a similar format. The important parts of a business check include:

1. Business name and address: Usually found in the top left corner, this includes your business’s name and address and sometimes its phone or fax number.

2. Check number: Displayed in the top right corner, the check number helps you keep track of payments.

3. Date: Typically near the top right corner, this is where you’ll write out the date you issue the check.

4. Payee line: Usually shown as the “Pay to the Order of” field, this is where you’ll write out the name of the business or individual receiving the payment.

5. Payment amount line: Just under the payee line, the payment amount line is the spot where you’ll need to write out the payment amount in words.

6. Dollar box: This is the area where you’ll write out the payment amount in numbers. The dollar box is located next to or below the payee line.

7. Financial institution information: The name and address of the bank or financial institution where your business account is held typically appear near the bottom of the check, under the payment amount line.

8. Memo line: This line, located in the bottom left corner of the check, can be used to note the payment purpose, invoice number or any other relevant information. 

9. Signature line: To authorize the payment, you’ll need to sign the check on the line in the bottom right corner.

10. Routing and account numbers: At the bottom of the check, you’ll see the routing and account numbers of your business bank account. 

11. Check number: The check number appears again, usually in the lower right-hand corner after the routing and account numbers.

Although writing a business check only takes a few steps, keep in mind that it usually requires more information than a personal check. After gathering the necessary payee information, here’s how to fill out a business check:

Start at the top of the check by filling in the current date. In some cases, you might choose to post-date the check by providing a later date, such as the date an invoice is due. This way, the payee knows not to cash or deposit the check until that specific date.

Make sure to include the complete business name or the individual’s name, spelled correctly. Write this name in the field where it says “Pay to the Order of.”

Write the payment amount in words on the payment line, then enter the numeric amount in the dollar box. For example, if you’re paying a vendor $1,706.93, write “One thousand seven hundred six dollars and 93/100” on the payment line and “$1,706.93” in the dollar box.

It’s optional, but the memo line can be handy for including notes like the invoice number or descriptions of the services—anything that helps both the payee and your records.

After double-checking that all the information is correct and nothing is missing, sign the check on the signature line. Make sure your signature matches the one your financial institution has on file. Some business owners might choose to use a signature stamp to simplify this step.

Be sure to properly log the payment in your financial records to keep track of the money leaving your account once the payee deposits it. You can use a business check register, accounting software or any system that helps you accurately manage your business expenses and cash flow.

Writing a business check is a great way to make payments—it’s trackable, secure and looks professional. Once you understand the key components and how to write a business check properly, it’s an easy approach to keeping your financial records organized.

Using a credit card for business payments also has its advantages, like cash back or travel rewards. If you’re interested in another option to pay vendors and make purchases for your company, compare business credit cards from Capital One. You can see if you’re pre-approved without impacting your credit.