Checkbook Register Template – (Track Your Incoming and Outgoing Funds)
A checkbook register template is a registered one that can be maintained for business and personal purposes to track incoming and outgoing funds in the bank account through checks while recording essential details like the category of inflow/outflow, check issuing parties, category of cash flow, etc.
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About the Template and How It Can be Used?
The checkbook register template is relatively simple to keep track of incoming and outgoing check transactions. All fields are input except the balance, calculated as previous balance + deposit/credit – withdrawal/payment.
It consists of the following fields:
#1 – Date
A self-explanatory field where the user will enter the date in the desired format;
#2 – Check No
The user must enter the check number for incoming and outgoing checks in this field. A check number is a unique identification of every leaf in a checkbook, and the bank keeps a record of which check numbers are issued to which customers.
Keeping track of the check number is extremely important while maintaining a checkbook register template because, without the unique identity of the check, it will be a little challenging to track the check if it is lost, damaged, or stolen. It is also a structured way to track all the checks in one place.
The user must input the check number from checks received or paid out in the field.
#3 – Bank Name
This field is irrelevant when the user puts in details of the checks he has issued from his account. When the user puts in details of checks received, it will populate this field with the name of the bank to which the check belongs. For example, if a third party has issued a check from his account in XYZ Bank while the user has his account in ABC Bank, the user will put XYZ Bank in this column. The user must leave the field blank for outgoing checks.
#4 – Issuing Party
This field is specifically relevant for incoming checks. The user puts in the name of the issuing party of the check and leaves the field blank if he enters the details of outgoing checks.
#5 – Transaction Description
This field is vital as it elaborates on the nature of transactions through checks. For example, your description could be sales, expenses, or any other business or personal incomePersonal IncomePersonal income refers to the total earnings of the individuals and households of a nation through multiple sources such as salary, wages, business profits, bonus, investment returns, dividends, rental receipts, employer contribution in provident or pension funds, etc. or expense.
One must populate this field in case of both incoming and outgoing checks. The description should be short, precise, and explanatory enough for the user to understand the nature of the transaction that took place using the checks.
#6 – Category
Every cash receiptCash ReceiptA cash receipt is a small document that works as evidence that the amount of cash received during a transaction involves transferring cash or cash equivalent. The original copy of this receipt is given to the customer, while the seller keeps the other copy for accounting purposes. or payment has a defined category mentioned in this field. The categories can be broad, like sales and expenses, or very specific, like sales from a particular city or expenses relating to specific business activity.
As a business owner, one can define the categories of his business based on the size of the business and the nature of transactions the business undertakes. However, for personal purposes, these categories can also be simple or complex based on the nature and frequency of transactions that one undertakes using checks.
#7 – Withdrawal/Payment
One must populate this column with the amounts of outgoing funds. Therefore, it will mainly be the amount of checks issued by the user.
#8 – Reconciled/Cleared
“Cleared” means that the transaction is settled at the bank. “Reconciled” means the user has verified the account against his records. Next, fill in whether the transaction reconciles or is clear.
#9 – Deposit/Credit
One must fill this space for incoming checks and credit to the user’s bank account.
#10 – Balance
It is the balance at each transaction date. The formula in the field leaves the field blank when there is no input in the withdrawal/payment and deposit/credit fields. It also uses the offset functionOffset FunctionThe OFFSET function in excel returns the value of a cell or a range (of adjacent cells) which is a particular number of rows and columns from the reference point. , which does not let any errors crop up whenever an entire row deletes.
One can calculate the balance as the beginning balance plus incoming check amounts less outgoing check amounts. However, one must note that the template will spit out a negative balance if the outgoing cash is higher than the opening balance and incoming cash combined.
Disadvantages of Checkbook Register Template
Following are a few disadvantages of using a checkbook register template:
#1 – Move Towards Digital Mode of Payments and Receipts
As information technology has evolved significantly in the last three decades, checkbook banking is becoming increasingly redundant. Most of the transactions are happening using the online mode and it is extremely easy to access records as everything is electronically stored. One can access years of data with a click, sort it, analyze it, and do many other things that will be challenging in a checkbook template.
#2 – Non Entry for Transactions that Take Place Through Other Modes of Similar Characteristics to Checks
The checkbook template does not consider transactions outside the checkbook route. Although the checkbook spreadsheets give an ending balance, this cannot be considered a final balance. The reconciliation with the bankReconciliation With The BankCustomers perform bank reconciliation to tally their records with their respective bank's statements because there may be differences between the customer's books of accounts and those of the bank. is always required, as discussed in the earlier point. It will add a host of transactions to this spreadsheet to make sense of the overall banking transactions in a given period.
A checkbook spreadsheet is useful for people or businesses who do almost all their transactions in checks. Or there could be people like retirees who receive checks periodically and need to keep track of their transactions and balances. Those kinds of users will find the template extremely useful.
This article has been a guide to Checkbook Register Template. Here we provide you with a free downloadable checkbook register table that can keep track of the incoming and outgoing transactions. Also, you can download and use this template in Excel, Google Sheets, or PDF format.
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