A checkbook register is a document that is used to record check numbers, payment dates, and names of payees and payment amounts for all check payments. The information in the register is also vital in reconciling bank details. It’ll also guide on the checks that have been issued, those that have been cleared by the bank, and those on the waiting list.
Most bookkeepers usually record check transactions on the checkbook register before these transactions are posted to the relevant ledgers. The accounts in the checkbook will depend on the company/business; for example, a manufacturer will make entries for production cost and purchase of raw materials. In the case of retail, they will make entries for account payable, inventory, and salary expenses. The register will show the accounts that are credited or debited in each case and the effect of each transaction on the entire cash balance.
Why should you use a checkbook register?
Although most businesses conduct their transactions online, each company needs to maintain a checkbook register. This is essential since your available balance may be inaccurate, besides banks do make mistakes, and you may also forget to create entries for some transactions.
A checkbook register will help you:
- Track your paid debts by amount and date.
- Spot bank mistakes
- Get rid of bounced checks and the associated expenses
- Detect identity theft and take the necessary action in time
- Track your transactions and ensure you have adequate money in your check account.
What to include in a checkbook register?
A checkbook register will typically include the following sections:
- Check number: ordinarily check numbers follow a chronological order. These numbers usually feature at the right-hand side of the checkbook register. You’re able to use the check nu be rot track your checks.
- Date: this is the day you’ve written the check. The entries in this column must be accurate to increase efficiency.
- Transactions details: These sections will include vital information about specific transactions such as the name of the payee, company, or business.
- Payment amount: the exact amount paid is entered in this section.
- Withdraw amount: in case you withdrew money for the checking account for any purpose, you should record the details in this section.
- Fee amount: any expenses associated with the transaction should be rescored accurately in this column.
- Deposit amount: any money you deposit in your checking account should be entered in this column.
- Transfer: if you’re operating two accounts, you need to record any money you’ve transferred from one account to another.
- Balance: this is one of the critical sections of your checkbook register. It shows information on the transactions you’ve made and their effect on the checking account.
Free checkbook register templates
How to create a checkbook register
Creating a checkbook register from scratch is a challenging task. If you want to make this job easier, you can download our free checkbook register templates in either Microsoft Excel or Word and personalize them according to your business. Go through our checkbook register templates and choose one that serves your needs.
A checkbook register is an essential tool that you can use to monitor activities in your checking account. It’ll help you to categorize your expenses and identify where your money goes, thus help you track your transactions. When you have records of your payments, you’re able to plan and budget better. The register will also assist in identifying bounced checks, credit card& bank errors, and other relevant information that will help you detect identity theft and take action in time.