How to Manage your Checkbooks

 

Managing and balancing your checkbooks is extremely important to do, just in case there is some kind of error. Not only can you catch an error, but writing all of your debits and credits down is a good way to increase your financial literacy. Visualizing your spending and earning habits on paper can help you spot trends, whether good or bad. This is a very helpful tool to have when you are running a business. Please follow the steps below to become more informed on how to use this tool. New transactions can be entered from the checkbook registry by selecting New Transaction. Using the selector at the top of the new entry area, select whether the new transaction is a disbursement or receipt. The entry details are then entered and saved using the same process as that found in the disbursements or receipts page.

 

Table of Contents

 

 

Checkbook

Checkbook

 

The checkbook function allows users to record and track all transactions associated with the business checking account. Entries on the disbursements page that have a source of Checkbook or Bank Statement automatically update the checkbook register. Entries on the receipts page that have a source of Checkbook or Bank Statement also automatically update the checkbook register. The checkbook register functions much like a traditional checkbook. Each page brings a balance forward from the previous month and shows both receipt transactions and disbursement transactions for the current month. After each transaction, the new balance is reported. Once an item has cleared a reconciled bank statement, the check box for Cleared will be marked.

 

Entering Transactions from the Checkbook

New transactions can be entered from the checkbook registry by selecting New Transaction. Using the selector at the top of the new entry area, select whether the new transaction is a disbursement or receipt. The entry details are then entered and saved using the same process as that found in the disbursements or receipts page.

Adding_Checkbook_Entries

 

 

Reconciling Checkbook Entries

After receipt of the monthly bank statement, the Reconcile function should be executed. Follow the steps below to complete the reconcile process:

  1. Select Reconcile.
  2. Select the date of statement.
  3. Enter the ending balance according to the bank statement.
  4. Enter the amount charged for service in the Service Charge field, then select an account associated with this charge (generally Bank Service Charges).
  5. Enter the amount of interest in the Bank Interest field, then select an account associated with this transaction (generally Interest Earned).
  6. Click Insert.

The next screen will show the balance carried forward from the prior month’s reconciliation, and tracks the total amount of receipts and disbursements that have been marked as Cleared. The amounts from the initial reconciliation screen appear and are used along with the checkbook balance to generate a Difference that should be narrowed to 0. If the bank statement amounts were entered incorrectly on the initial reconciliation screen, they can be corrected in this screen by selecting Modify.

 

Completing the Reconciliation Process

Each uncleared item from the disbursements and receipts register appears on the screen. The reconciliation process is completed by marking the items that cleared. When an item is marked, the Difference changes by that amount.

If an item appears on the bank statement that has not been entered on the disbursements or receipts register, select the appropriate area (either receipts, disbursements, or checkbook) from the navigation icons and enter the new item. Then from the checkbook page choose Reconcile again to return to the reconciliation process. The data completed to that point will remain intact.

Once the Difference equals 0, select Reconcile. The Service Charge and Interest amounts will be posted to the checkbook balance and the cleared items will be marked as cleared in all registers.

If the reconciliation cannot be completed at this time, choose Cancel.