Most personal checks provided by American banks are the size of currency notes. They come in a variety of styles and colors, depending on the bank. These checks can also get personalized with colors and images according to the preferences of the user. Most people fill up personal checks by hand, although some people prefer printing the details.

Business checks are larger than personal checks even though that is not a legal requirement. They are seldom handwritten. Most businesses print the details on the checks. However, the size and the method of printing the payment details are not the only differences between personal and business checks. In this article, we are going to talk about the other prominent differences that entrepreneurs must be aware of.

Professional Looks

While personal checks can have cartoons and graffiti on them, business checks must look professional. So unless you own a toy store or a comic book shop, a business check must look elegant and in line with the other aspects of your business. Your clients and stakeholders will see business checks as a reflection of your company.

Therefore the design of the checks should be simple and elegant. Several companies prefer buying custom business checks online because they can include their company's logo and elements related to the brand's image. Incorporating these aspects on your business checks will make them look professional and enhance your company's image in the eyes of the recipient.

Better Security

Business checks are more susceptible to fraud than personal checks. Therefore business checks come with enhanced security features that cannot be found on most personal checks. The security features on business checks can include the following:

• 3D hologram

• Fluorescent fibers

• Watermarks

• Heat sensitive ink

Criminals use various methods to forge business checks, such as copying or washing the checks to edit the details. These security measures get placed to ensure that the chances of forgery get minimized. Premium quality business checks have laser security features, such as:

• Chemically reactive paper

• Prismatic background

• High-resolution border

• Security weave on the back

These security features are often invisible to the naked eye and can only get viewed under a laser. When you get your business checks, ensure that they have some of these security measures in place.

Check Conversion

Businesses can decide whenever they want their checks to get converted into an electronic form or not. Some companies may want to make their checks convertible into electronic payment through ACH networks. There are several advantages of making business checks electronically convertible. Some of them are:

• Lessens the cost of check processing

• Makes the administrative work easier

• Better visibility into the expenses

Merchants can decide not to make their business checks convertible into electronic form if they do not want the money to get debited from their accounts on the same day. Business checks need to have an identification that makes them ineligible for ACH conversions. They must have an "Auxiliary On-Us" field in the same line where the MICR gets printed on the check.

Added Features

There are several other features found on business checks that are not there on personal checks. Business checks have larger memo lines than personal checks. They also have a larger area to print the payee name and address. The size is matched with the size of a regular envelope to make it easy for the address to show up at the window.

Business owners often get business checks with multiple signature lines for different signatories in the company. There are some additional lines added for any remarks that need to get included with the check.

There are some other aspects that business owners must be aware of when it comes to business checks.

It is a good business practice to have separate checking accounts for business and personal finances. The difference in the size of business checks can be a useful factor in keeping the expenses separate for personal and business transactions. Keeping the finances separate can also help you to protect your personal funds legally if your company has to declare bankruptcy due to unavoidable circumstances.

Keeping separate checking accounts will help you to maintain your finances better and abide by the tax laws efficiently. When it is time to pay your taxes, you will not have to sort through your finances to compile the financial reports. It will also save you from having to explain to the IRS which expenses are business and which are personal.

There are several differences between personal and business checks, and they are there for the benefit of the business owner. While some of them are to create visual differences, others have a technical purpose behind them. You can customize your business checks with the features that are most suitable to you and your business.