Checkbook Register Template – (Track Your Incoming and Outgoing Funds)
A checkbook register template is a registered one can maintain for business and personal purposes to keep track of incoming and outgoing funds in the bank account through checks, while also recording important details like the category of inflow/outflow, check issuing parties, category of cash flow, etc.
About the Template and How It Can be Used?
The checkbook register template is a fairly simple template to keep track of incoming and outgoing check transactions. All fields are input fields except the Balance, which is 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.:
In this field, the user needs to put in the check number for both incoming and outgoing checks. 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 a track of check number is extremely important while maintaining a checkbook register template because without the unique identity of the check it will be a little difficult to track the check-in case it is lost, damaged or stolen. It is also a structured way to track all the checks in one place.
The user needs to input the check number from checks received or paid out in the field.
#3 – Bank Name
This field is irrelevant when the user is putting in details of the checks that he has issued from his own account. When the user is putting in the details of the checks he has received, this field will be populated with the name of the bank that check belongs to. For example, 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 in case he is entering details of outgoing checks.
#5 – Transaction Description
This is an extremely important field as it elaborates on the nature of transactions happening through the checks. Your description could be sales, expenses or any other business or personal income or expense.
This field has to be populated in case of both, incoming as well as outgoing checks. The description should be short and precise and should be explanatory enough for the user to understand the nature of the transaction that took place using the checks.
#6 – Category
Every cash receipt or payment has a defined category, which is mentioned in this field. The categories can be broad like sales and expenses or can be very specific like sales from a particular city of expense relating to particular business activity.
As a business owner, one can define the categories of his businesses based on the size of the business and the nature of transactions the business undertakes. 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
This column has to be populated with the amounts of outgoing funds. This will mainly be amounts of the checks issued by the user.
#8 – Reconciled/Cleared
“Cleared” means that the transaction is settled at the bank. “Reconciled” means that the user has verified the account against his records. Fill in whether the transaction is reconciled or cleared.
#9 – Deposit/Credit
This space has to be filled in for incoming checks and will be a credit in the user’s bank account.
#10 – Balance
This is the balance at each transaction date. The formula used in the field leaves the field blank when there is no input in the withdrawal/payment and deposit/credit field. It also uses the offset function which does not let any errors crop up whenever an entire row is deleted.
The balance is calculated as beginning balance plus incoming check amounts less outgoing check amounts. 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 quite significantly in the last three decades, checkbook banking is becoming increasingly redundant. Most of the transactions are happening using the online mode and is extremely easy to access records there, as everything is electronically stored. One can access years of data in click, sort it, analyze it and do a whole lot of other things which will be difficult to do 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 take into account the transactions that happen outside the checkbook route. Though the checkbook spreadsheets do give an ending balance, this can not be considered a final balance and a reconciliation with the bank are always required and as discussed in the earlier point, there will be a host of transactions to be added 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 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 in PDF format.
You can also take a look at our other useful articles-