Definition: A log you keep of all the activity regarding your bank account, By adding the deposits and subtracting checks and fees, you know the amount that is in your account. The register is usually a small booklet the size of a typical check, allowing it to be conveniently kept alongside one’s checkbook.
Example: At the grocery store Mabel writes a check to pay for today’s purchase. In separate pre-defined columns in her checkbook register, she writes the check number, date, business paid (formally called the *payee*), a description of the purchase (perhaps to host a party for a family member), and the amount. If she really wants to be conscientious, she can subtract the amount from the last balance shown to calculate what’ll be left in her account when the grocery store deposits the check.
Investeach explains: It is critical that all activity affecting your account be recorded in the register. This includes purchases made using your debit card and cash withdrawals you make at an ATM machine. Therefore, it is best that you keep your register with you and update it on-the-spot!
Some activity, such as interest earned or service charges, will only become known to you when you receive and analyze your bank statement (or when you go on-line and log into your account). They should be recorded in your register as soon as you become aware of them.
When you receive your bank statement each month, the balance your register shows will probably not equal the balance the statement shows. This is not cause for alarm. There are things the statement already reflects, such as the above-mentioned interest and fees, that you are only now finding out about. On the flip side, there may be checks you’ve written that haven’t made their way to the bank. See Account reconciliation for how to bring the different balances together.
Finally, some people prefer to use computer software to keep their register. These people bring home receipts reflecting purchases, withdrawals, and deposits, using them to make accurate entries in the computerized register. Computerized registers are handy in that they can be used to quickly analyze how money is being spent. They also make account reconciliation easier. Taking this even further, applications exist for today’s smart phones which allow people to keep a register and update account activity wherever and whenever it takes place!
Riddle me this:
1. Why is it important to maintain a checkbook register?
2. What type of account activity should be recorded in the register?
3. How do the banks make it easy for us to carry our register around?
4. How soon after an addition to or subtraction from our account takes place should we record it in the register?
5. What can cause the balance shown in our register to be different than the balance the bank statement shows?
6. What are the advantages of keeping a computer-based register?
7. What advantage do smart-phone register applications have over computer-based ones?