Checking Account Management Chart
The first step is to inquire at a financial institution the process of setting up a checking account. On a separate sheet of paper, typed, and double-spaced write a report on how one would open a checking account. Be detailed in you description. Start with who, the person’s position, who you dealt with to open the account. What are the requirements to open an account? Must you maintain a certain level of balance? Is there overdraft protection? Do you have access to ATMs, other than the financial institutions? Are there fees? If so, what are they? These are only some of the questions you need to ask. Listen carefully, take notes, and be thorough.
The second step is for you to understand the Check Register of your account. You need to keep good records of deposits and debits (checks written or ATM withdrawals). Use the Check Register below and complete the balance column by subtracting debits and adding deposits. The first transaction is completed to show you how it’s done.
Date / Check No. / Transaction / Deposit Amount / Withdrawal Amount / ü /Balance
117.933/17 / 225 / Vons / 7.95 / -7.95
Snacks for party / 109.98
3/21 / 226 / Verizon / 19.95
3/22 / ATM / 20.00
Movies
3/22 / 227 / Tick-a-tron / 29.99
Twisted Sister
3/25 / 228 / US Post Office / 5.75
Stamps
3/28 / Deposit paycheck / 210.59
3/30 / ATM / 20.00
Cash
4/5 / 229 / SP Cleaners / 9.95
Dry cleaning
4/7 / Payless Shoes / 47.53
Dress shoes
4/10 / Deposit / 50.00
B-day gift from aunt
4/12 / 231 / McCoy’s / 179.03
Repairs
4/18 / Deposit paycheck / 223.76
The Bank Statement
Once a month, you will receive a bank statement that shows all the deposits credited to your account and all debits against your account. Note that the date on the statement indicates the date the check cleared the bank, not the date the check was written. Below is a sample of a bank statement.
ACCOUNT STATEMENT
CHECKING
From 3/18 to 4/17
Checking account #11111111-1 Closing balance: $243.10
DEPOSITS
Date Amount
3/28 210.59
4/10 50.00
CHECKS
Number Date Payee Amount
225 3/21 Vons 7.95
227 3/24 Tick-a-tron 29.99
229 4/7 SP Cleaners 9.95
230 4/9 Payless Shoes 47.53
ELECTRONIC TRANSACTIONS
Date Location Amount
3/22 Pacific View Mall 20.00
3/30 Santa Clara Valley Bank 20.00
Balancing You Checkbook
Use the following process to help you balance your checkbook. Complete the form on the next page.This is explained on your Account Statement each month.
Step 1: In the √ mark symbol column of your register, check off every deposit, check, and ATM transactions that appear on the bank statement.
Step 2: The remaining deposits and debits in your check register are those that had not cleared the bank at the time that the bank statement was issued. Use the form on the next page to reconcile your bank account with your check register, a process known as balancing your checkbook.
Balancing Your Checkbook Form
1. Closing balance, (from bank statement) $ ______
2. Calculate the total deposits by adding together all deposits
made since the closing date on the bank statement (all
deposits with no check marks in the √ column).
Date / Deposit AmountTotal Deposits /
+$ ______
3. Add together the closing balance and the total deposits
to get the subtotal (line 1 + line 2). =$ ______
4. Calculate the total debits by adding together all debits
(checks and ATM withdrawals) made since the closing
date on the bank statement (all debits with no check marks
in the √ column).
Date / Debit AmountTotal Debits /
-$ ______
5. Subtract total debits from the subtotal (line 3 – line 4) $ ______
This total shows the amount of money in your account according to the bank. It should match the most recent running total in your check register.
What to do if it isn’t balanced
If you have tried to balance your checkbook, and your register shows a different amount than the bank records, use this checklist to see where the problem is.
1. First, make sure that you started off with a balanced checkbook.
- Was your checkbook balance last month? If not, the problem may be with last month’s figures.
2. Then make sure that you have accounted for every deposit, check, and ATM withdrawal made on you account.
- Have you recorded every transaction in you check register? ATM withdrawals are suspect here.
- Have you overlooked any deposit or debit that has not cleared the bank since the closing date on your bank statement?
3. Then double-check your math.
4. Check with the bank. If your have double-checked everything and have found no errors, it is possible that the bank made an error in its records.