Fill out a check for the first time or sometimes for the first time? You may have questions such as where to sign a check and how to write a check with cents. Although you may not write many checks, this is an important skill. Let us answer your questions with quick instructions.
Step 1: Check the date
Write the date in the line at the top right. This step is important, so the bank and/or person you give the check to know when you wrote it.
Step 2: Who is this test for?
The next line of the check, “Pay by order,” is where you enter the name of the person or business you’d like to pay. You can also simply write the word “cash” if you do not know the exact name of the person or organization. However, keep in mind that it can be risky if a check is ever lost or stolen. Anyone can cash in or deposit a check made out in cash.
Step 3: Write the amount in numbers
There are two places in the check where you write the amount you pay. You will first need to enter the dollar amount numerically (for example, $ 260.65) in the small box to the right. Be sure to write it clearly so that the ATM and/or bank can deduct this amount exactly from your account.
Step 4: Write the amount in words
Write the dollar amount in the line below the “Pay-per-order” words to match the numeric dollar amount you entered in the box. For example, if you pay $ 260.65, you would write “two hundred and sixty-five and 65/100.” If you want to write a check with cents then you should make sure the amount of cents exceeds 100. If the dollar amount is a round number, so include “and 00/100” for added clarity. Writing the dollar amount in words is important for the bank to process the check, as it confirms the correct total amount of payments.
Step 5: Write a note
Filling in the line that says “Memo” is optional, but useful to find out why you wrote the check. If you pay a check for a monthly electricity bill or rent, you can type “Electric Bill” or “Monthly Rent” in the notes area. Often, when paying an invoice, the company will ask you to enter the account number on the check-in in the notes area.
Step 6: Sign the check
Sign your name in the bottom right corner of the line using the signature you used to open your checking account. It shows the bank that you agree to pay the specified amount and to the correct beneficiary.
Register the payment in the check register
Even if you know how to write a check, many people do not properly understand the importance of a check register.
Keeping track of your expenses is crucial to achieving healthy finances, and managing your checkbook properly is a good start.
Your check log is a record of the checks you write and can be used to track cleared checks and available balances. This will allow you to better manage your finances and avoid costly unauthorized overdraft charges on your account.
You must register each transaction in the check register immediately after writing the check, so as not to forget the details.
Here are the steps to complete your checkbook.
Step 1: Enter your opening balance in the first line. This should be the amount currently in your account’s ‘Balance’ column. Most check registers have a larger and small box, so dollars and cents should be placed separately in each box.
Step 2: In the next line, fill out the check number you wrote in the “Check Number” column.
Step 3: When working across this line, fill in the verification data in the Date column and enter the name of the person or company in the ‘Transaction Description’ column and the check amount in the ‘Payment / Debit’ column.
Step 4: You’ll then need to create a new balance in the balance sheet column by subtracting the check amount from the balance above. This balance will differ from the balance on your online account or ATM receipt, as the check has not yet been actually cleared.
Step 5: Repeat each transaction. This will help you track the activity on your checking account.
You will need to include all transactions made from this account, including ATM withdrawals, deposits, ACH payments, and more. This will help you be as accurate as possible and avoid any penalties or additional charges.
Step 6: Finally, when you receive your monthly bank statement, identify the checks and transactions that cleared your account, and add a note in the checkbox.