When it comes to counting the transaction, we need to trace all the financial flow so that a single purchasing is tracked. To do this, we actually need a check register. So, a check register can be defined as a document that can be a media to show the dates and times of payments, the check numbers, the amount of cash that we pay, and the payee names. In accounting perspective, this check register is actually a part of the general ledger. The usage of a check register is to trace and document the transactions in a form of cash.
Since we have discussed that the check register is determined as a part of the general ledger, we also need to know what a check ledger is. Actually, a check ledger is similar to a check register. It is a journal that is used to track the activity of a checking account. The other term of the check ledger is the transaction register. When it comes to using a check ledger or check register, we can utilize this, a part of the general ledger, to trace the recent activities of withdrawals and deposits that we have made. We can also use this to recur automatic transactions, such as online bill payment.
When it comes to banking or financial things that are related to accounting purposes, we may have heard about account balance. Actually, the account balance can be defined as the amount of the money that we earn in the accounts, including checking or saving accounts. The account balance is the net total that is available for us. This availability will occur when all the bills and credits are finished to be balanced with the charges or debits.
There are so many confusing terms when it comes to financial things or accounting. We actually need to manage our finances. So, accounting is here to help us. However, when we try to understand it, the terms make us confused. So, we can't understand how the function of general ledger, check, and many more. We are just distracted by the terms without knowing how those work. Actually, a checking account transaction is called a check register, just like what we have discussed before. The other term that is similar to a check register is a cash disbursement journal. This is beneficial to calculate the occurring balance in the checking account. When it comes to purchase or earn cash, we document the transaction in the check register. We can also use this to check our recent account balance.