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Manual vs Computerized Checks: Pros And Cons For Small Businesses

A black woman holding a computerized tablet in front of a sign that says open.

With more and more businesses entering the digital age, there’s increased demand for digital accounting.

However, is this necessary for small businesses and worth the investment?

Let's look at the pros and cons of manual and computerized checks for small businesses.

What is a business check?

Business checks are a popular form of payment used by businesses of all sizes. These can be both manually written and computerized. Business Checks aren't going out of style; over half of companies still use checks to make business-to-business transactions. 

Ensuring checks are paid on time and correctly is important for any company, ensuring businesses can run smoothly due to making payments promptly. This is where computerized statements are adequate as they can be done automatically and electronically, providing no disruptions are caused, which could avoid loss of revenue or reputational damage.


While using computerized checks for smaller businesses has pros and cons, some companies may need help to afford accounting software. However, companies that use manual checks may need someone to ensure their books are in order. Using computerized checks alleviates the need for this as they can do this themselves. 

Accounting software can range from $5 to $50 per month depending on your chosen level. As the business grows, you can change the level you see fit.

When writing manual checks, there’s a higher risk of errors being made, which could lead to financial losses; using computerized assessments avoids this issue as they’re produced automatically.

Ease of use

Using accounting software allows businesses to integrate tasks such as filing invoices, issuing pay slips, and linking to their online banking, meaning more time can be spent on running your business. Manual check users must complete all these tasks individually, meaning more time is taken away from the company or additional costs to hire someone to achieve these.

Businesses that have been using manual checks for a long time may be hesitant to change how the company operates and move to an entirely new accounting system. They may feel if manual checks have worked for them all this time, why is there a need to change now?


It’s essential to remember staff will need training on any new system to avoid any errors or mistakes; this will need to be planned into the business's schedule and budget.

Record keeping

Having everything kept in one place online ensures easy access to historical documents; this avoids any potential risk of documents being lost or damaged, which may be needed in the future. Paper records also take up space and can easily be misplaced or lost. As more businesses operate remotely, this only increases the need to have all documents in one place stored online for easy access.


With security being a top priority for customers, having all checks stored in one place online can be a point of worry for businesses as the potential for hacking is an ever-present threat. With manual reviews, these can’t be hacked and, as such, avoid these concerns. Good cyber security measures can alleviate these risks, ensuring your systems remain secure.

On the whole, there are clear pros and cons for both electronic and manual checks.

What's right for one business may not be for another, and the business's needs should be considered before making a decision. For small businesses struggling with day-to-day costs, this may be a luxury they can’t afford. However, there are clear long-term benefits to digital checks, such as better record keeping and reduced risk of errors, which could lead to further costs.

Computerized checks will only be for some; however, the long-term benefits may outweigh the short-term costs. We are in the digital age, so utilizing technology may be wise.

Frequently Asked Questions

What are the benefits of computerized checks?
Computerized checks offer numerous benefits like time efficiency, error minimization, and better record keeping.

What are the drawbacks of computerized checks?
The drawbacks include potential cybersecurity threats, the need for training, and the costs associated with accounting software.

Do manual checks still hold relevance in the digital age?
Yes, manual checks are still relevant for businesses that prefer a tangible form of payment and have concerns about digital security.

How can a small business transition from manual to computerized checks?
The transition involves investing in accounting software, training staff, and integrating the new system with existing operations.

Is the transition from manual to computerized checks costly?
Yes, costs are associated with buying accounting software, training staff, and potential risks related to digital data.

What should I consider when choosing between manual and computerized checks?
When choosing, consider factors such as your budget, staff's ability to adapt to new technology, efficiency and accuracy, and the importance of cybersecurity in your business.

Are there any hidden costs when transitioning to computerized checks?
The main costs are the purchase of software and staff training. However, there might be additional costs for ongoing software updates, maintenance, and potential cybersecurity measures.

Can I use both manual and computerized checks in my business?
Yes, many businesses use a combination of both to meet different needs and preferences, providing flexibility in their financial operations.

How does using computerized checks improve efficiency?
Computerized checks can automate many tasks such as issuing pay slips, linking to online banking, and recording transactions, saving businesses time and reducing the risk of errors.

How secure are computerized checks?
While computerized checks can be susceptible to hacking, suitable cybersecurity measures can significantly reduce this risk and protect your financial data.

Would you like me to train my staff when transitioning to computerized checks?
Staff training is crucial when introducing any new system to ensure everyone understands how to use it effectively and avoid errors.

Can computerized checks integrate with my existing accounting software?
Most modern check-writing software can integrate with popular accounting software, but it's best to check compatibility before making a purchase.

Are there affordable options for small businesses transitioning to computerized checks?
Yes, several affordable software solutions are available, and many offer tiered pricing based on the size and needs of your business.

How can computerized checks help with record keeping?
Computerized checks create automatic digital records of every transaction, making tracking and managing your financial history easy.

Are there any environmental benefits to using computerized checks?
Yes, computerized checks reduce the need for paper, contributing to environmental sustainability.

What happens if my business loses internet access?
Do you think I can still issue computerized checks? Most computerized check systems require internet access. However, some plans may allow offline work, which can be synced once the connection is restored.

Do I need to completely phase out manual checks if I opt for computerized assessments?
No, the choice is yours. You can retain manual checks for certain transactions or as a backup option.

How quickly can a small business transition from manual to computerized checks?
The transition period varies depending on the size of the business, the chosen software, and staff adaptability. Generally, it can take a few weeks to a few months.

Can using computerized checks impact my business's credit score?
No, computerized checks do not directly impact your business's credit score. However, efficient management of payments can indirectly contribute to a good credit history.

Can I customize computerized checks to match my business's branding?
Yes, most computerized check software allows customization, enabling you to add your logo, business details, and other branding elements to your checks.

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