3 Invoices how many cheques? - The Book-keepers Forum (UK)

Noola · Senior Member

3 Invoices how many cheques?

Peasie · Expert

One cheque for all three invoices. It's likely they'll have to pay extra bank charges if you send three cheques (a charge for the pay-in, maybe 50p and a charge for each cheque, maybe 20p). Not much in your instance but multiply it by every customer and it soon adds up.

Send a remittance advice along with the cheque or even just write the invoice numbers on the back of the cheque to let them know which invoices are being paid.

bookkeepertim · Member

Agreed - one cheque...or even better, one payment using online banking.

Then: lower/ no bank charges, no stamp, no envelope, no trip to the post box AND the bookkeeping is simpler for you because the name of the supplier will appear on the face of the bank statement (rather than the cheque number).

Put the invoice numbers in the "reference" box so that the supplier knows who you have paid. This detail will also appear on your bank statement.

Noola · Senior Member

Thanks for your replies :)

HendyPhilhendy · Guru

Still can't believe how many people insist on paying by cheque! Bonkers.

Shamus · Forum Moderator & Expert

Hi Phil,

Money stays in your account rather than your clients. You don't make a lot of interest nowadays on positive balances but where you have an overdraft it can be serious money saved in interest so the cost of the goods / service for which the cheque is paying could be considered discounted by that much.

So, all in all, can't believe how many people don't pay by cheque or just pay by cheque too early. (actually, I'm normally guilty of that latter one).

Banks are working on doing away with cheque's as it's in their interest rather than the clients. However, they've hit serious brick walls with getting clients (especially charities) to sign up to the idea.

One alternative put forwards is a piece of paper that looks just like a cheque and comes in a book like a cheque but you also have to put the bank account details of the account that the money is going into.

To me that's just a cheque with two more fields on it.

Expect banks to make it progressively more difficult to use cheques in a bid to ween us off their use. However, for now, god bless cheques.

All the best,

Shaun.

Peasie · Expert

I'm the opposite of you Shaun, I hate cheques and will be glad to see the back of them.
Seven or eight years and they'll be gone. I'd be happy pay everything electronically or by card. Even to the point where my bank statement shows the exact time and location of every transaction. That will never happen.

And when coins and notes are done away with I'll be even happier still.

The downside to cheques being done away with is like Shaun says when you have an overdrawn balance and you won't be able to get away with the "cheque's in the post" excuse.

HendyPhilhendy · Guru

I agree with Peasie. I prefer my clients to pay me electronically, either by standing order or direct transfer. Saves me the hassle of going to the bank to pay it in, which costs me fuel and parking costs (I live in the sticks!).

Paying online also means I don't have to go to the post box down the road. It also leaves an audit trail on my bank statement rather than a cheque reference. How many clients have you had that lose a cheque book!

Don't get me wrong, I like to get out

The timing of it and interest for me is not really an issue, you should only really send a cheque if you have the funds for it to clear!

RSBookkeeping · Veteran Member

One cheque for all 3 invoices, along with a remittance

As my main job is credit control, with a bit of accounts payable, I can see if from both sides of the coin. We prefer to be paid directly into the bank because it saves on bank charges with cheques, but if we pay via cheque it means we keep the money for longer. I guess it's down to whatever suits you best.

semsley · Guru

If you aim to pay a cheque in order for it to meet the due payment date it is makes little difference to your bank balance.

I like internet banking for all the reasons above and the fact that you can set a date for a payment to be made (therefore it no leaving you bank straight away) which is great for when you are on holiday. I also prefer to be paid direct as I never have the time to go to the bank to pay cheques in (I usually post them which means writing a letter, using an envelope and paying for a stamp).

Dalbir · Senior Member

I have a dislike to cheques, they have a habit of bouncing.

Not only annoying for your cashflow but also makes your Sales ledger look messy when it comes to allocating and finding receipts matched to specific invoices.

Dalbir

Noola · Senior Member

I'm all for coins being done away with. However I hate the delays for payments showing up on your bank statement when you pay by card and the money not coming out straight away. Same as cheques I suppose but surely banks can be a bit quicker with this.

On a personal level, after many purcahses I forget how much I've spent and never know how much is really in the bank.

Peasie · Expert

Noola wrote:
On a personal level, after many purcahses I forget how much I've spent and never know how much is really in the bank.

If just for your personal banking and you have a smartphone there are many apps you can use to track your spending and bank accounts. Takes about 20 seconds to put in a transaction. After a while you can then see how much you are spending on various items. Or how much you are spending in various shops.

I personally use Account Tracker by Graham Haley

http://grahamhaley.co.uk/accounts/

bookkeepertim · Member

Noola wrote:

I'm all for coins being done away with. However I hate the delays for payments showing up on your bank statement when you pay by card and the money not coming out straight away. Same as cheques I suppose but surely banks can be a bit quicker with this.

You may be interested to know there is a new method of payment coming our way!

"Contactless cards" are debit cards that you touch onto a contact point next to a till, and payment is taken without the need to enter your pin. The process will work on transactions up to £15. It sounds pretty good, I think. I have done a blog on the subject, if you are interested in knowing a little more...

BudgetB · Guru

I'm with Peasie and Phil on this one. Nothing more annoying than having a piece of paper in your hand that you then have to take to the bank and then wait another week to get your money!!