All charges and payments to your account must be written in your checkbook register. When you write a check, deposit money, withdraw cash, use ATM cashing, or incur a fee, record the details in your register. This money management tool, helps you track your cash balances.
Things You'll Need
- Banking Account
- Check Book & Register
The register makes it possible for you to know how much money you have available to spend at all times. Record the payment information in the register. Subrtract the amount from your balance. When making deposits, record it in the description of deposit, and add it to your balance.
The checkbook register example in the diagram above shows the steps needed to record successfully.
Within the diagram you will learn how to:
List transactions that charge money from your account in the "Payment" column.
List transactions that add money to your account in the "Deposit" column.
Calculate the "Balance Forward" column by subtraction charges or adding deposits
Organize and develop a simple key that will work for you. You will have to remember these details from month to month.
Suggested Entry Keys
DEB - Transactions made with your debit card.
CR - Credit If for instance one of your payments have been fully refunded, you can write a credit for that particular charge.
DW - Draft Withdrawal An amount you agree to is automatically withdrawn from your account on a set day of the month.
D - Deposit Balance forward will increase as you add a check received for working.
C - Withdrawal of cash You need cash on hand, and decide to withdraw an amount from your account. Your balance forward will deducted.
TF - Transfer fee.
Banks charge a fee for transfers made under a set amount.
T - Transfer When you transfer money from one account to another, such as from your checking account to a money market account.
I - Interest Interest earned on your account through an annual percentage yield.
ADJ - Adjustments When balancing your checkbook, make an adjustments for bank and personal recording errors.
ATM - Transactions made through you ATM card
SC - Service Charge Banks charge a fee for maintaing your accounts.