Paying Invoices by Cheque

Robin9

Just include the invoice number in the payee detail ie Silvershine 19/12345

Zanderman

Silvershine wrote: »

This seems like an option but .... If the invoice number / reference no is written on the back of the their cheque - how do we identify what the payment is for on this side (on our bank statement)?

Surely you'd know? You receive the cheque, you know who it's from and the reference, you pay in via cheque imaging on an app, you record, at the same time, on your own records, whose cheque you just paid in?

You may be able to record it in the app, but even if you can't you're doing the paying in, so you know already.

Silvershine

Yes I do know - when I deposit the cheque from them into our account - but I am getting to the point where I can no longer do this for them (the old looking after the old!) My question was rather about them depositing their own cheques into our account They say then when they pay their cheques into our account (at the bank) there is no way for them to record a reference / invoice no

Robin9

Could you supply your customers with a pre filled paying in slip as per #12 ?

Zanderman

Silvershine wrote: »

Yes I do know - when I deposit the cheque from them into our account - but I am getting to the point where I can no longer do this for them (the old looking after the old!) My question was rather about them depositing their own cheques into our account They say then when they pay their cheques into our account (at the bank) there is no way for them to record a reference / invoice no

But if they send you the cheques for you to pay them in, which you suggest has been your practice until recently, the problem won't arise. Cheque imaging, if you can't get to the bank easily, would solve the entire problem.

Having said that you do need, obviously, a bank with an app that supports cheque imaging - and not all do (yet). And a gadget - smartphone or tablet - that can run the app.

And, in my experience anyway, some patience, as cheque imaging can sometimes be very frustrating! The cheque must be flat (so folds or even a crinkle can be a real nuisance) and is best on a dark surface (I use a black clipboard). You hold the phone over this horizontally and the app provides a virtual frame within the screen in which you position the cheque. But... sometimes focusing takes time (the app does this by itself) and keeping the phone steady and exactly horizontal whilst it does this can be challenging. Practice makes perfect though - and it does save going to the bank.

Edited to add: Also I've found that some non-standard sizes of cheque (e.g the ones banks issue themselves which are often a bit squarer than personal ones) aren't accepted by the apps as they don't fit in that virtual frame. Last one I had like that was issued by Lloyds and Lloyds own app couldn't do it, I had to go branch. I did grumble a little when I got there...

J_B

Ben8282 wrote: »

What sort of business send out invoices then goes round to customers houses collecting the cheques from them? Sounds like some sort of extortion racket ….

It happens a lot in farming


The 'feed rep' calls on the customer monthly to take future orders and pick up the cheque for last month. Rep may also offer advice on animal health and nutrition ... but that is way off topic!!!


When I was a farmer and people posted us a cheque, we would post the cheque and pay-in slip to the bank for deposit ... but I suppose that does involve a trip to a post box, unless your friendly postie will take it off your hands.

robatwork

Silvershine wrote: »

This seems like an option but .... If the invoice number / reference no is written on the back of the their cheque - how do we identify what the payment is for on this side (on our bank statement)?

On Halifax you take pictures of the back and front of your cheque when "paying in" online

Motormad

Why not put a reference number on the invoice with a tear off part to return with their cheque in the post.

Flobberchops

Silvershine wrote: »

They say then when they pay their cheques into our account (at the bank) there is no way for them to record a reference / invoice no

It IS generally possible to include a reference on a cheque deposit, over the counter or at a deposit machine. Your customers may not know how to, but it's possible!


As suggested, perhaps provide them with several credit slips that you have pre-written the invoice number on, (perhaps highlighted to bring to the attention of bank staff), and ask your customers to let the bank cashiers handle entering the reference?

IanManc

Silvershine wrote: »

We are a very small company (turnover approx £15k). Many of our customers are older and have been paying us by personal cheque for many years. Some of them do not own a computer, or smartphone (to download payment apps) nor even email. We have been collecting their cheques and depositing them (on their behalf) for many years. We are "rapidly" approaching old age ourselves (in fact I am "retired") and are having quite serious mobility problems. This means we can no longer collect their cheques and "go" and deposit them.into our account. One complaint we get is that if they go to any bank to pay their cheques into our account there is nowhere on the deposit slip that they can record what they are paying i.e.a reference or an invoice number. This is causing them some anxiety. Does anyone have any advice (that I can impart to them)?

Silvershine wrote: »

Yes I do know - when I deposit the cheque from them into our account - but I am getting to the point where I can no longer do this for them (the old looking after the old!) My question was rather about them depositing their own cheques into our account They say then when they pay their cheques into our account (at the bank) there is no way for them to record a reference / invoice no

You are not paying the cheques by which you have be paid by your clients into your own account "on their behalf" or "for them". You are doing it on your own behalf, for you.

Any business which accepts cheques in payment for goods or services banks the cheques it receives, just like it banks the cash it receives.

If cheques are no longer convenient for you then don't take them in payment. If you want to keep on taking them as a means of payment then you're not doing something for someone else by banking them.