Definition: A check ledger, also known as a cash disbursement book, is the document used to record all checks, cash transfers, and cash outlays over a period of accounting. Will I need to keep a check register? A: The short response is yes, you certainly need to update your test list. Here's the explanation. So long as you use checks, you do not know the true balance in your account until you enter the unchecked checks that you wrote against that account. The use of a log allows you to capture errors.
It's much easier to evaluate your revenue and expenditures, particularly at tax time. It will back up your savings goals. Routinely monitoring your checking account balance could help you save money on banking fees and prevent fraudulent transactions from wrecking your account.
A check register is a ledger in which all check payment dates, check numbers, payment amounts, and payeee names are recorded. ... Also, the report can be used as part of the bank reconciliation process, to decide which checks released have not yet cleared the bank, and thus reconcile objects.
Some people recommend keeping checkbook records in case "issues" (payment questions) occur for at least 12 months and because some checks may take a while to clear.
Despite their steady decline in use, however, checks have not become extinct altogether. We are still keeping our money in checking accounts, we are still juggling our checkbooks, and new banking innovations are being implemented (for example, mobile check imaging) to boost the process of paying by check.