Breaking Down the Anatomy of a Business Cheque

Even though online banking is the latest trend, we still choose to write a cheque for many transactions. Company owners and finance managers consider business cheques as a safe method for transactions. 

However, have you ever stopped to think about the different parts of a cheque? What do each element on the face of the cheque leaf denote? Let us have a look at these parts.

1)A drawer is a person or financial institution who makes the cheque.

2)A payee is the recipient of the money. Ensure that you have written the name correctly.

3)The date on the business cheques must be the current or future date. Verify with the bank the format of the date to avoid issues

4)The payment amount written in words. It should be the same as what is written in the box in numbers.

5)The cheque number is unique for every business cheque. You can see it at the bottom of every cheque. It helps banks to avoid occurrences of fake cheques. 

There are 4 parts to it

a.The 1st 5 is the cheque number

b.The next 5 is the transit number (home branch details)

c.The next 3 is the institution code (code for the bank)

d.The last 7-12 digits are the account number 

Conclusion:

Make sure whenever you are printing business cheques, all these parts should be included properly. This will ensure smooth transactions for the banks, the issuer, and the recipient.

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