Can you write a check to yourself?
Though today’s world is digital but checks are also common. Check is an effective as well as an inexpensive tool of moving money but one does not fill out a check daily or maybe one has never filled it before. Writing a check is a very simple and easy but important skill. Everyone should know how to read a check or how to write a cheque.
A six-step guide
We will let you know how to write a check step by step. There are six steps to filling out a check from the top of the check to the bottom. This will help you avoid any step’s skipping. You just need to move through these parts of a check one by one. Here is a picture is given below displaying all these six steps that will guide you on how to fill a check. Have a look at the sample check.
By following these steps, you can write a perfect check.
Step 1: Put the current date
The first step of check writing is putting the current date. You need to put the date on the top right corner. You should use today’s date that helps both the parties keep an accurate record. You can use postdate as well but post-dated cheques do not work the way one thinks they will. postdate can be problematic.
Step 2: Payee or recipient name
The second step is to write the name of the recipient or payee on the “pay to the order of”, line. The recipient is a person write his first and surname. If the recipient is a company then make sure you have the correct company name.
Step 3: Amount in numbers
The third step is to write the amount in numbers in the box on the right. The first digit of the amount should be written close to the left-hand border of the box to prevent any fraud. Fill in the amount in dollar and cents. Many people don’t know how to write cents on a check. For instance, you can write 23,010.52. No need to put the dollar sign because it is printed on the check.
Step 4: Amount in words
Write down the same amount on the next line to prevent any fraud. It will be considered the official amount. If the numeric amount and the amount in words are different then the amount in words will legally be the amount of that check. You should use CAPITAL LETTERS that prevent any fraud.
Step 5: Memo
Step 5 is to fill the memo line which is an optional one but it helps to know the reason behind writing that cheque. If you are paying an electricity bill or rent then you need to write “Electricity bill” or “Monthly rent” in the memo line. Sometimes when you pay a bill, the company will demand you to write your account number in the memo area.
Step 6: Signature
There is a line for signature on the bottom right corner. Many people don’t know how to sign a check. The answer is, “sign the check legibly”. You should use the same signature that you used while opening the account. Signing a check is essential. The check will be invalid without your signature. Your signature gives authority to the payee to draw that amount from your account. If there is a question popping up in your mind that how long is a cheque valid for? The answer is “for three months”.
Other things to do
1 Keep the record of your checkbook
You should keep a record of your checkbook in a register because you spend much money and you should have a record where you have spent your money. This check register is meant for keeping a record of your expenses and deposits. It will also help to prevent any fraud.
2 keep a record of your transactions
When you make a payment by check, you should record the check number which is found in the top right corner. It is also helpful to keep a record and ensure none of the checks is missing. It is also helpful to remind you about “reorder checks”. You should describe in the “description” column, where you made payment and for what and write the exact amount as well. Then subtract the amount of the check or add in deposits to the amount in the account from the previous transaction. You should reconcile your bank statement monthly.
While it is 2019 and most of the transactions are digital but paper checks are also common. So it is important to know how to write check correctly. Then keeping track of your checks is also a good practice. It helps you keep a record of your spending and prevent any fraud.