How to Write Manual Checks & Balance a Business Check Book

Balancing a business checkbook can help to avoid overdrafts and embarassment

Checks were originally used as a way to transfer money to someone without having to carry a large amount of gold or cash. Although still widely used, checks are often printed by computers and manually writing checks is becoming a lost art. However, knowing how to write a check is still a very important skill. If using checks in a business, it is even more important to know how to balance a business checkbook.

Instructions

Write Manual Checks

1. Write the current date on the first empty line, normally located near the top of the check. Do not write a future date on the check, also known as post-dating.

2. Enter the name of the person or company to which you wish to give the money. This should be written on the line next to "Pay to the order of."

3. Mark the dollar amount of the check in words on the line next to "Dollars." Write the amount starting as far left as possible. Cents should be written as xx/100. The word dollars does not need to be written, as it is always printed on the check. After you finish writing the dollar amount, draw a line from the end of the words you wrote to the end of the line. As an example, $75.62 would be written as seventy five and 62/100.

4. Write the numeric form of the amount of the check next to the dollar symbol ($) on the check.

5. Jot down the reason for the check on the line next to "Memo" or "For". For example, gas bill, rent, gift, etc. This line is optional but can help you to remember the check in the future when it comes time to balance your check book.

6. Sign your name on the last line of the check. This step should always be done last in order to prevent someone from stealing the check and filling out the rest of the check for you.

Balance a Business Checkbook

1. Enter the amount of the check, check number, date and transaction description in the business check register each time a check is written. Subtract the amount of the check from the current account balance to keep the account balance up to date.

2. Record all deposits made into the checking account, including the date, transaction description and deposit amount. Add the amount of the deposit to the current account balance to keep the account up to date.

3. Subtract bank fees and add bank interest earned on the checking account from the current account balance.

4. Compare the bank statement to the business check register. Put a check next to all items in the business check register that also appear on the bank statement.

5. Add all the deposits entered on the business check register that do not appear in the bank statement to the account total on the bank statement.

6. Subtract all checks and withdrawals that appear on the business check register but are not on the bank statement from the subtotal calculated in step five above. This calculated total of the true balance should equal the balance on the business check register.

References

• State Farm; How to Balance Your Checkbook in 10 Easy Steps
• Enchanted Learning; Checks and Checkbooks