By Will Fleenor, CPA, Ph.D.
Partner, K2 Enterprises
If you are currently printing your checks with QuickBooks or some other accounting software product, you probably spend a lot of time making sure you have the correct pre-numbered checks loaded in the printer. This is particularly true if you have multiple bank accounts and/or multiple businesses that operate out of one office. Further, if you are using preprinted checks and have a misprint, you have to void that check number and issue another check.
In addition to wasting time, preprinted blank checks cost a lot of money. Selling pre-printed blank documents, like checks, is a profit center for many software companies. Some even make more money selling pre-printed blank documents than they make selling their software.
A less expensive, more efficient approach is to print all the check information (both the bank check information and the check payment information) in one pass on completely blank check stock. You can even print your signature on the check, all in one pass through the printer. Printing your own checks rather than using preprinted checks can not only save lots of time, it can also save $70 to $100 per 1000 checks in some situations.
Most bank checks use MICR (Magnetic Ink Character Recognition) technology to provide a secure, high-speed method of scanning and processing information. Therefore, you will need hardware and software that can print MICR checks. For most business users this is no problem. You probably already have all the hardware you need, and the additional software can cost as little as $50.
In order to print MICR checks in one pass from within an accounting software package, like QuickBooks, you will need the following:
1. A printer capable of printing MICR checks.
Many of the ink jet and most of the laser printers we currently have in our offices are capable of printing MICR checks. For example, almost all recent models of HP Laser and ink jet printers can print MICR checks.
2. A special MICR toner cartridge for your printer.
These cartridges are available for many of the printers we are currently using. HP, for example, has over 26 different models of MICR toner cartridges. Furthermore, you do not have to switch out the cartridges when not printing checks. These MICR toner cartridges often cost the same or only slightly more than regular toner cartridges, and can be used for routine printing of all types of documents as well as for printing MICR checks.
3. Blank check safety paper.
This paper is readily available in dozens of colors for as little as $25 (or less) per thousand checks. This price is significantly less than the cost of preprinted checks. Remember, there is no need to have logos or other items preprinted on the check paper because you can print whatever logos or graphics you want when you are printing your checks. You can change your graphics whenever you want and don't have to wait until you run out of checks.
4. Software to help your accounting software print MICR checks.
Most accounting software packages do not come with the ability to print MICR checks. They assume you are using the pre-printed blank checks you have purchased from them or from a competing vendor. Therefore, you will have to acquire a third party software package that works with your accounting software to be able to print the MICR checks in one pass.
The "in one pass" capability is an important feature to look for in selecting your MICR check software add-on. If you have to print in two passes (i.e. first print the blank checks and then run the check stock through the printer again to fill in the checks), you only get half the advantage of printing MICR checks. You save the cost of the pre-printed checks but don't get the time savings associated with printing everything in one pass. At the end of this article there is a listing of some of the software companies that sell software to print MICR checks.
That's all there is to it. You simply find MICR check software that works with your current accounting software package, order a MICR toner cartridge for your printer, buy some blank check safety paper and you are off and running. I guess there is one other thing. You will need to put some money in your account to cover all those checks that are now so easy to write!
Will Fleenor, CPA, Ph.D. is a partner in K2 Enterprises. K2 Enterprises provides continuing professional education (CPE) for accountants and other business professionals in the United States and Canada
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