Cheques: does anybody still use them?

[teamsaint]

There is no good reason.
making extra money for banks doesn't amount to a good reason.

[ahinton]

Finally

So you get the idea that "convenient" is relative NOT absolute

No, not "finally"; nor do imagine that cheques have anything but a limited life. People will vote with their feet on this just as they do most other things. Those who live within walking distance of a bank branch might find it convenient to receive cheques for a time, whereas those who don't and who therefore have to spend time and money either visiting such a branch (and many bank branches are now closing, so that will be more and more people) or going to a post office or mailbox won't. Most businesses have either gone or are planning to go the document imaging route for their files; what's so different about cheques? Cheques not only cost money (and trees) to produce, they have also to be retained by banks for a certain length of time; this costs money and occupies space (1bn of them must take up a fair few cubic metres).

As to business bank accounts, not only are incorporated businesses obliged by law to have separate business bank accounts (as has already been pointed out here), the same also applies to all unincorporated businesses whose trading name is different from that of the person running the business. OK, self-employed sole traders whose business name is their own name (as I presume yours to be) can indeed run a single current bank account for both business and personal transactions and, in some cases this can save on bank charges, but in most if not all such instances any such savings would likely be more than offset by the additional cost of having an accountant go through the statements to determine which entries relate to business income and expenditure and which to personal income and expenditure.

Amusing though the Jimmy Carr reference was, my way of avoiding VAT is not merely legitimate but what some might regard (though I don't) a government sponsored tax avoidance scheme in that any business whose supplies are all either zero rated or exempt or both for VAT purposes does not have to return VAT to HMRC; mine falls into that category and is not regiustered for VAT as a matter of choice - I could register it and would then be entitled to reclaim all VAT paid by the business but not have to charge or return any to its customers, so the taxpayer would effectively be funding an increase in the business profits. So why don;t I register and take advantage of this loophole presented to me by HRMC? Because it's too much bother - all the extra paperwork, the risk and inconvenience of routine inspections and the risk, inconvenience of cost of any investigations mean that the game isn;t worth the candle; it would be if the turnover and profit/turnove ration was much higher than it is and, if ever it gets to that point, I'll register like a shot, of course.

[ahinton]

I don't think anybody was expecting you to if you didn't want to; you, on the other hand, were insisting, against the evidence provided by several people, that cheques were inconvenient & shouldn't be used.

I did not and do not suggest that they shouldn't be used, I merely pointed out that they are used less than once they were, that they're expensive to produce, process and retain and that they're inconvenient for anyone who does not have easy access to a bank branch, especially at a time when many of these are closing.

[ahinton]

No one (and that includes my accountant who used to be a Tax inspector ) has given me a good reason why , given the nature of being a SOLE trader it's necessary. If the banks actually tried to support small enterprises then I might reconsider but I fail to see what is offered apart from more expense that is best avoided.
I'd do a sock under the bed if that was possible

Does anyone make socks that big?(!)...

[VodkaDilc]

I think we can conclude that cheques are like CDs, FM radio, newspapers and books - many people would like to dispatch them to history, but they have plenty of life in them to survive for some years to come. The consumer should not be dictated to - as s/he was over digital television.

[amateur51]

I think we can conclude that cheques are like CDs, FM radio, newspapers and books - many people would like to dispatch them to history, but they have plenty of life in them to survive for some years to come. The consumer should not be dictated to - as s/he was over digital television.

Nicely summarised, VodkaDilc

[MrGongGong]

OK, self-employed sole traders whose business name is their own name (as I presume yours to be) can indeed run a single current bank account for both business and personal transactions and, in some cases this can save on bank charges, but in most if not all such instances any such savings would likely be more than offset by the additional cost of having an accountant go through the statements to determine which entries relate to business income and expenditure and which to personal income and expenditure.
.

Sorry you are wrong on this
and it's rather tedious anyway
You can have as many "personal" bank accounts as you like
you can use them for different things
If you need audited accounts (which aren't always necessary) someone will go through it all anyway so no extra accountancy fees at all

You seem to be much more interested in the money thing than whatever your business is ? So I would guess it's to do with money.........
I never visit my bank "Branch" , I don't even live within 100 miles of it
and I only visit the accountant once a year ....... which leaves much more time to make funny noises

[teamsaint]

Sorry you are wrong on this
and it's rather tedious anyway
You can have as many "personal" bank accounts as you like
you can use them for different things
If you need audited accounts (which aren't always necessary) someone will go through it all anyway so no extra accountancy fees at all

You seem to be much more interested in the money thing than whatever your business is ? So I would guess it's to do with money.........
I never visit my bank "Branch" , I don't even live within 100 miles of it
and I only visit the accountant once a year ....... which leaves much more time to make funny noises

An accountant that makes funny noises is to be treasured.

[amateur51]

An accountant that makes funny noises is to be treasured.

That made me teams - many thanks

[Petrushka]

Well done Pet: I didn't anticipate over six score messages on this subject !

Nor did I! It's amazing how the most innocent subject can descend into a slanging match. It's like throwing a stone into a pond and watching the ripples.

For the record, I'm with ahinton in most of his posts that are on topic. I've been thinking of cheques as relics of another era and ripe for phasing out for quite some time.

[MrGongGong]

I've been thinking of cheques as relics of another era and ripe for phasing out for quite some time.

Like harpsichords you mean ?

[Flosshilde]

" relics of another era and ripe for phasing out"? Do you think that the not inconsiderable number of people who find cheques useful or essential for personal or business reasons are 'relics from another era'? The banks want to phase cheques out because they reduce their profits. It's another example of them 'improving' services but really reducing them.

[MrGongGong]

Come off it Flossie we ALL KNOW that history is a process of improvement
take the example of Bach and Robbie Williams

[Petrushka]

" relics of another era and ripe for phasing out"? Do you think that the not inconsiderable number of people who find cheques useful or essential for personal or business reasons are 'relics from another era'? The banks want to phase cheques out because they reduce their profits. It's another example of them 'improving' services but really reducing them.

Not at all. In my job (debt collection) it has been very noticeable how cheques have been used less and less as a means of payment for some years. Many customers (sole traders as well as big organisations) now prefer to pay our invoices by BACS or credit card. Cheques are disappearing. That coupled with the fact that I haven't as much as opened my own cheque book in more than two years has made me wonder. However, Vodkadilc does indeed sum it up nicely above in message 140.

[Nick Armstrong]

well, that must surely be the most bonkers saturday night MB exchange of all time.

Excellent work all round!

Says it all !!