How do I write a cheque?

To write a cheque, you’ll need to fill out the necessary spaces on a blank cheque.

  1. Date of payment: when payment is being made – written as day/month/year.

  2. Payee: who you’re making the payment to. This can be a person or a company.

  3. Amount being paid: In the blank space next to the pound sign, write the amount being paid. If there are no pence, put two zeros. For instance one hundred and twenty three pounds would be written as 123.00. In the blank space before "pounds," write the amount being paid again, this time in words. You may like to add the word "only" at the end if there are no pence.

  4. Description of payment: for example "electricity bill." This is optional, but it helps the payee remember what the payment is for. It also helps with bank reconciliation.

  5. Signature: signing the cheque confirms the payment is under your name. Keep in mind you must use the same signature you used when you opened your bank account. You may also need a signature from the business if it's from a general business account.

     

Related terms:
What is electronic funds transfer?
What is a bank statement?

Related Xero feature: 
Accounts payable software that keeps you up to date

Related Small Business Guide: 
How to create a small business budget

Accounting Terms

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How do I write a cheque?

To write a cheque, you’ll need to fill out the necessary spaces on a blank cheque.

  1. Date of payment: when payment is being made – written as day/month/year.

  2. Payee: who you’re making the payment to. This can be a person or a company.

  3. Amount being paid: In the blank space next to the pound sign, write the amount being paid. If there are no pence, put two zeros. For instance one hundred and twenty three pounds would be written as 123.00. In the blank space before "pounds," write the amount being paid again, this time in words. You may like to add the word "only" at the end if there are no pence.

  4. Description of payment: for example "electricity bill." This is optional, but it helps the payee remember what the payment is for. It also helps with bank reconciliation.

  5. Signature: signing the cheque confirms the payment is under your name. Keep in mind you must use the same signature you used when you opened your bank account. You may also need a signature from the business if it's from a general business account.

     

Related terms:
What is electronic funds transfer?
What is a bank statement?

Related Xero feature: 
Accounts payable software that keeps you up to date

Related Small Business Guide: 
How to create a small business budget

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