How to Make Checks Out to Cash

Follow Good Business Practices

Making checks out to cash is a perfectly legal way to bank with others or to pay yourself, as long as proper procedures are followed. However, for safety, Internal Revenue Service audits and record keeping, it is much safer and better to write the check to a specific individual.

Things You'll Need

• Blank check

Instructions

1. Date the check, and on the line that says "Pay to the order of," write "Cash." Fill in the dollar amount with numerals. Enter the amount of the check in print on the long line. Sign the check.

2. Flip the check over and immediately write your name as the endorser.

3. Go to the bank of issue for immediate cash. Provide proper identification to the teller. You may be charged a fee if you are not a customer of the bank. Otherwise go to your own bank and deposit the check into your own account.

4. Cash checks for petty cash by writing the check immediately before depositing it. Use the company name for the party to be paid. Under "Memo" write "Petty cash." Save receipts for proof that the check proceeds were used for business purposes.

Tips & Warnings

• Make sure you enter the check number and purpose for any business check or personal check in a registry.

• It is much harder to stop a lost or stolen check written to cash, because the finder will attempt to cash the check immediately. Use checks with specific names if possible. Writing checks to cash to pay yourself rather than your own name is illegal, if you are attempting to avoid IRS disclosure. You will have to endorse the check, in either case, so your name will be attached to the check.

References

• Cashing Checks for Children

Resources

• Using Petty Cash Tips