Having a business makes you should maintain your finances. Track and managing company finance has huge benefits in how everything goes. A check register would help you in these fields. Let's get to the details!
It is a tool for recording all of the transactions in your company during the accounting period. It has beneficial to calculate the balance that running on your checking account. It makes you know everything about your financial details. Let's arrange things that you can get from using this stuff:
When it comes to the check register, you have some options to record your transaction such as recording the transaction on paper manually, using a spreadsheet, and using accounting software.
In a manual way, you can prepare a book and pencil to write down all the transactions. The minus from this method is way too time-consuming. Using the spreadsheet style makes you able to state your own formulas and the balance calculation. Basic accounting software such as FreshBooks will easily help you in organizing transactions. It will keep you up to date on the running balance and also have the details about the transaction period.
Talking about the check register, it is generally known to last for six months only. However, it is still based on the type of the check itself. Some check even more than this time. Let's get to the details!
Based on the UCC (Uniform Commercial Code) laws and regulations, the banks are having no obligation to receive personal or business checks which more than 180 days or six months. From this, you know that the check is better no more than the time. However, there are some banks that are willing to accept it that already cross the eligible time.
If you already have the check, the banks will encourage you to turn it in as cash as soon as possible, especially if it's already in 180 days. Holding the check makes it your account possible to experience the risk. Your account number or routing number changing can be the cause.
When it comes to other checks, it has a regulation that is a bit different from what was mentioned before. U.S. Treasury checks are great for one year after the date on the checks. Meanwhile, the local government checks still depend on the stated law that is based on the local government agencies. The state tax fund is varied but mostly also takes 6 months until one year.
There's no wrong with writing checks manually. If you are the type of person that writes down everything, you might go with this style. Constructing a regular check might seems confusing. These steps might help you out in filling it out while also explaining the numbers preprinted for each one.
Filling up the date first. This detail commonly exists in the top right corner of your check. The United States standard will have a month, day, and year to fill up. Even the date might be a common thing, but this one is quite crucial. With this, you will able to re-check everything based on the date stated.
The recipient's name should be stated clearly. Write it down in the blank space which requires this information. It can be under a personal, organizational, or business name. Make sure you state everything in complete name.
Numerical form and expanded word. State the right dollar amount using numerical characters. Make sure it's closed to the left-hand side, so no one can change the amount. The expanded word should state the details about the numerical spelling. Write it down in small, then all the characters will fit on the form.
A signature is defining the legitimate. Sign the name on the bottom right corner of the check. Your signature also means the mandatory, which is the recipient unable to draw the cash unless it has your signature.
There is a possible case that your check was returned due to the bank refusing to honor it. It is such a bad sign, especially for your business. The primary reason is that the funds are insufficient. However, some causes are also possible.
The banks potentially reject your funds due to the invalid account and routing number, wrong format, invalid signature, and the long time since the printed date. Therefore, make sure you keep it perfect, so these kinds of problems not gonna happen. Here are some tips to have a perfect check:
This is identifying the bank of the money. Therefore, you have to make sure that it is printed on the last line in MICR-encoded font. Then, it will easily be detected by the computer.
The detail of the check number is commonly stated in the upper part. It defines each payment, and fraud minimalize, and constructs the continuity of the bookkeeping.
Stated details about your business or personal name along with the name that addresses it. Double-check it!
Make sure you include the dates and the full name along with the payee and numbers to be paid. Stated the dollar amount in numeric and words is also a must.
Double-check the valid signature, so the check is able to draw as flows of cash.