Do You Use Duplicate Checks?

On September 20th, 2012, posted in: Accounting, Security by 0 Comment

Several years ago I met with a contractor that needed his accounting processed for the prior year. He wanted us to set up QuickBooks for him and enter all the banking activity. Normally, no problem! This time, big problem! Like many people, he used duplicate checks. He figured that would work for him instead of a check register to track his expenses. The logic says, if I have a copy of the check, I don’t need to keep a register.

This logic has two flaws:

  • Without using a register, how do you know what the balance in the account is?
  • Duplicate checks aren’t permanent documents; they fade over time.

When the contractor showed me his checkbook, which he kept in his truck year-round in the Arizona heat, the first dozen pages were fine. Then writing started to fade until about 20 pages into his check book the pages were totally blank!

There are a couple of solutions to this problem:

  • Start using a check register ; then you can save money getting regular checks.
  • Request copies of your checks with your bank statement.

Usually there’s a small monthly charge for the second solution, but it would be worth it to have the documentation you would need if you’re ever audited. Using regular checks and a check register is probably the least expensive way.

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