Understanding Cheques_ A Comprehensive Guide for Businesses (1).pptx

Understanding Cheques_ A Comprehensive Guide for Businesses

1. BY YUSHEN BY YUSHEN Understanding ChequesA Comprehensive Guide for Businesses

2. C ontents Importance of Cheques in Business 2. 1. Basics of Cheques

3. BY YUSHEN BY YUSHEN 01 Basics of Cheques

4. 01 A cheque is a written document instructing a bank to pay a specific amount of money from the writer's account to a designated individual or entity. What is a Cheque? 02 Cheques work by providing a safe and trackable method for individuals and businesses to transfer funds without the need for physical currency. How Cheques Work 03 Types of cheques include bearer cheques, order cheques, crossed cheques, post- dated cheques, and traveller’s cheques, each serving different purposes in financial transactions. Types of Cheques Definition and Function

5. The origin of cheques dates back to ancient banking systems where written orders were used to transfer money, significantly evolving over centuries. Origin of Cheques The modernization of cheques involved the introduction of standardized formats and regulatory frameworks to streamline their use in the financial industry. Modernization of Cheques Digital transformation in cheque processing includes electronic clearing systems and image- based cheque truncation to enhance efficiency and reduce processing times. Digital Transformation in Cheque Processing International Use of Cheques International use of cheques varies, with some countries still heavily relying on them while others have largely transitioned to electronic payment systems. History and Evolution

6. BY YUSHEN BY YUSHEN 02 Importance of Cheques in Business

7. Cheques have several security features such as watermarks, holograms, and unique serial numbers that help in preventing unauthorized access and fraud. Security Features Cheques provide a paper trail of transactions, which is crucial for the accounting and auditing processes within a business, ensuring transparency and accountability. Record Keeping Using cheques allows businesses to track payment statuses easily, confirming receipt and processing by beneficiaries, and aiding in financial management. Payment Tracking Benefits of Using Cheques

8. STEP. 01 Fraud and Forgery One of the significant risks associated with cheques is the potential for fraud and forgery, which can result in financial losses and requires stringent security measures. STEP. 02 Handling and Processing Time Cheques can take several days to clear, which may delay payment processing and cash flow. This lag can impact the liquidity and operations of a business. STEP .03 Declining Usage Trends With the rise of electronic payments, the use of cheques is declining. This shift may affect businesses that rely heavily on cheque transactions, necessitating a move to digital systems. STEP. 04 Regulatory Compliance in Different Jurisdictions Different countries have varying regulations regarding cheque usage, making it challenging for businesses operating internationally to ensure compliance with all legal requirements. Challenges and Risks

9. BY YUSHEN BY YUSHEN Edited by Shikhar Vijay Thanks