How to use the Checkbook Register

The parts of the checkbook register

Checkbook registers (also known as transaction registers) are an important part of money management and personal budget control. Flip to the beginning of your checkbook and take a look at the components of the checkbook register. There will be multiple columns with the details differing from checkbook to checkbook. The first is usually some sort of check number or transaction number. The second and third are the amounts of debit and credit (or reversed). The fourth is blank space for describing the entry. The fifth is a column for the incurred fee associated with the transaction.

Software to simplify things

One can always use free personal finance software to deal with such personal money matters. There are a number of excellent and best personal finance software with different kinds of functionality, but the paper version does go a long way to much of the basic functionality.

The check ID number

The first column of the transaction register is the check ID number. All checks have an identification number usually printed on the upper right hand corner. The number is picked by the customer and should be chosen in a way to minimize confusion between successive checkbooks. For example if your current booklet starts with numbering from 500 (and you can pick whatever you would like), then make sure the next booklet starts from a higher number to reflect the temporal sequence of check usage. When the check is issued by you, the writer, you enter its identification number in the first column. For other transactions like ATM withdrawals there will be a transaction identification number on the receipt.

The debit or credit amount

The next column in the checkbook register is the credit (in the case of deposits) or debit (in the case of withdrawals or charges) associated with the transaction. Enter this number in the column with the dollar and cents value. For the sake of proper money management ensure the value is correct as mistakes will propagate from the entry to other parts of the register.

Description of transaction

The next thing to record in the transaction register is a description. Every transaction serves some purpose that should be described. For example a monthly rent check or mortgage payment should have the words written in this area describing it respectively as "rent check" or "mortgage". It would be even better if the check recipient were noted such as the landlord company or mortgage underwriting bank's name. These notes are crucial for resolving disputes with both the payee and also the bank which sometimes makes mistakes. Yes, banks are run by humans who make mistakes even in this age of computers!

Fees

It is useful to note applicable fees in the transaction register. For most transactions there are no fees but sometimes it is unavoidable when using specialized services of a bank. For example when making a cashier's check to pay for products from companies that do not accept personal checks, the bank usually charges exhorbitant amounts around $5-$10! Therefore not only is money coming out of your account but there is a bit extra that you must pay the bank for this service. Of course, not all banks charge the same rate and some may even do it cheaply but this is something to be arranged before even opening an account. Calculate the fees as part of your personal budget.