The Differences And Similarities Of Personal Checks And Business Checks


In today’s digital environment, writing checks seem to be a thing of the past. Particularly when you can access your debit and credit cards from the ease of your mobile phone.

Are checks becoming extinct? Not exactly. In reality, paper checks are still accepted by up to 97% of small businesses. Moreover, small enterprises utilize them for payment.

What Are Business Checks?

Business checks are checks linked to a business checking account. When you establish a business checking account, through a financial institution or online banking website, you acquire a business checking account. As a result, it is not yours as an individual. Instead, it enables you to make business checks against your firm’s assets rather than your personal bank account.

For example, as an employee, you are most likely paid via paper checks every two weeks. Of course, you must deposit this kind of money into an ATM. This saves you from taking your money to a banking institution to be deposited.

However, getting a check from your company in person will always be a business check. This is due to the payment being made from a business account. Also, all of the information on the business bank check will be about your employer.

When should you utilize business checks?

The IRS advises all small businesses to keep their checking accounts separate from their personal bank accounts. You may utilize your company’s checking account to issue business checks if it has one. Payroll, insurance, utilities, stock purchases, major purchases, and other expenditures may be covered by such checks.

It makes more sense for you to have a business checking account as a small business owner. This makes the accounting procedure easier. It also recognizes your organization as a distinct legal entity. As a result, the firm’s creditors cannot come for your personal property. And, you are protected if the corporation fails to satisfy its financial responsibilities.

Moreover, by having a checking account, your company may benefit from tax breaks.

What Is a Personal Check?

A personal check is intended for your own use alone. It’s a piece of paper that orders your bank to move funds from your personal checking account to a payee’s account.

Naturally, if you’re the payee, a personal check moves money from someone else’s account to yours.

When should you utilize personal checks?

Personal checks are useful when the payee desires that you pay by check. Several small companies do not take credit cards or debit cards. Others, however, will not accept cash if the amount surpasses a certain threshold. Personal checks are used in such circumstances.

Yet, if you own a small business, you must remember that a personal check is not a security check. This implies that the payee may write a check to your company for any amount of money. They also may not have enough money in their personal bank account. Consequently, it will bounce when you attempt to cash this check at the ATM. You also risk not being reimbursed until the payee has sufficient funds in their bank account.

You may be charged an overdraft fee if you write a personal check without sufficient money in your account. You can learn more about managing your personal checks at

Personal Checks and Business Checks Have Similarities

Personal checks and company checks are more different than similar. They do, however, have a few characteristics in common. To begin, you may cash or deposit a check, whether business or personal. Since the method differs, continue reading to learn how to utilize both checks.

Another thing that personal and business checks have in common is that they both carry the same basic information. A check has a date, payee, check number, amount payable, signature line, and bank routing number.

What Are the Differences Between Personal and Commercial Checks?

As previously said, business checks and personal checks are quite different. They vary in size, design, print, price, security features, and application. A thorough analysis of the same is provided below.


Personal checks are often less comprehensive than business checks. Business checks are 8 x 3 to 5 inches in size, while personal check sizes are 5 to 6 by 2 inches.

Its big size makes business checks simpler to print if you wish to do it yourself. Personal checks, on the other hand, are smaller since they are designed to fit in wallets and hand pouches.

Branding and design

Business checks are often designed to be professional in appearance since they are part of your company’s branding. As a result, they often include your company’s name, location, emblem, and other official information.

Personal checks are less formal and more artistic, with bright pictures of animals, sports, graffiti, landscapes, etc. It all depends on what you want to be written on your check. As a result, personal checks convey personality rather than professionalism.


A personal check’s payee information is virtually always handwritten. Business checks are not like that. On the contrary, they are nearly typically completed on a computer and printed to seem more professional.

The only component of a business check that is always handwritten is the payor’s signature. If you are the company owner, your handwritten signature must be on the check to be legal.

It’s also worth mentioning that you may often leave out a few facts while filling out a personal check. This comprises the payee’s name, account number, account data, and date. When the payee is ready to deposit or cash the cheque, they complete those forms.


What is the cost of business checks? The check’s issuer determines it. Banks are often the most costly. They may charge up to 30 cents for each check. But, there are less expensive alternatives to get company checks. For example, retailers such as Costco, Walmart, and Sam’s Club provide business checks at substantially lower rates than banks.