Basics And Components Of A Wealth Management System
Without the right kind of planning, it is only too easy to splurge, lose track of debt and default on bills. More and more people are now turning to financial planning tools like checkbook registers in order to keep track of their income and expenditure in an organized manner.
What is a checkbook register?
A …show more content…
Components of a checkbook register
Before you understand How to fill out a checkbook register, you need to understand the components of the checkbook register. While these pre-formatted checkbook register templates are completely customizable, they are available with the standard formatting of a checkbook register that includes these seven components in separate columns:
Date: This records the date of the transaction. So that you know when you made or received a payment.
Transaction code: This refers to the unique code allotted to every transaction. It may also refer to a cheque number.
Description: This will help you remember where you got money from and where you spent it. It helps you to avoid double payments and slip-ups in case you cannot remember whether or not you paid a particular bill.
Withdrawal: This column keeps track of all debits so you know how much money you have taken out of your account.
Deposit: These account for all credits to your account.
Balance: This will give you the running balance after every transaction so that you know exactly how much money you have …show more content…
How to balance a checkbook
Now that you know How to fill out a checkbook register use the following tips to understand How to balance a checkbook accurately every time:
Ensure you have recorded every transaction. Include cash transactions, ATM withdrawals, online payments, debit card payments, bank fees, EMIs and every other small detail you can think of. Don’t forget to account for any debts, dues or interest.
Use these online Printable check register template to keep track of your transactions or make your check register.
Label all transactions in your checkbook register so that you can clearly identify the source of the income or expenditure.
Calculate your new running balance after every transaction.
Understand the maths. The current balance after your last transaction is the opening balance before your next.
All deposits are credits and all withdrawals are debits. So you must subtract your debits from your opening balance and add your credits to it in order to calculate your current