Does GFOA recommend that governments discontinue using paper checks?

The Government Finance Officers Association (GFOA) emphasizes the importance of streamlining financial processes while enhancing security and reducing the risk of fraud. Hence, recommending the discontinuation of paper checks outright is not aligned with their guidance. Instead, GFOA advocates for governments to explore electronic checks and methods, which can provide increased efficiency and security compared to traditional paper checks.

Utilizing electronic payments can help simplify the payment process, reduce administrative burdens, and minimize the potential for check fraud, which is a significant concern with paper checks. By moving towards electronic solutions, governments can also reduce costs associated with printing, postage, and data entry associated with paper checks. This recommendation is particularly relevant in the context of evolving technology, where electronic transactions can often be processed faster and with more traceability compared to paper methods.

Therefore, the focus is on enhancing the payment systems through modernization rather than a blanket recommendation to stop using paper checks entirely. This approach allows for a more balanced consideration of both security and practical operational needs in public finance.