Cheque Register

A company issues a supplier cheque today, but the supplier deposits it next week, so the bank balance may still include that money until clearing. A cheque register shows the pending obligation so cash planning does not mistake it for free funds.

Record each cheque number, bank account, issue or receipt date, amount, payer or payee and purpose, and add a due or presentation date for post-dated items so that someone can see whether the cheque was held, deposited, cleared, returned or cancelled. AccountingTools describes a check register as an internal record of payment dates, numbers, amounts and payees, separate from the external bank statement.

Some systems include deposits and electronic payments in the same account register, so define whether your report is cheque-only or a wider cash ledger. Use the bank statement to confirm clearing, because a cheque marked as handed to a supplier is not necessarily paid, and record the clearing date and reference after bank reconciliation.

An outstanding issued cheque is one recorded by the company but not yet cleared by the bank, and it is a reconciling item when comparing book and bank balances. A simple outstanding value equals issued cheques not yet cleared, adjusted for documented cancellations.

If $120,000 of cheques was issued and $95,000 cleared, $25,000 remains only if both totals cover the same period and population, and aged items should be reviewed rather than assumed deposited. Post-dated cheques need separate visibility, because a future date affects when presentation is expected, though legal and accounting treatment can vary.

The register helps forecast the likely cash movement without replacing a cash flow forecast. For received cheques, track custody and deposit responsibility, since a cheque in a drawer is not cash in the account; record who received it, where it is held and when it was sent to the bank.

Returned cheques need timely follow-up: note the bank reason, contact the counterparty through the appropriate process and do not mark a receivable as settled merely because a cheque was initially received. Security cheques can have different commercial purposes from ordinary payment cheques, so record the underlying agreement and the conditions for presentation or return rather than treating them as immediate income or a normal payable.

A replacement cheque should be linked to the original cancelled instrument, otherwise the register may overstate obligations or leave an old cheque apparently active. Cheque books need controls: keep unused leaves secure, reconcile sequence gaps and restrict signing authority, so that an unexplained missing number becomes visible.

A signer should check supporting invoices or approved obligations before issuing a cheque, because the register documents the payment instrument and does not prove the purchase was valid. Match bank account details to the actual cheque book, review stale items with the payee and bank rather than deleting them, and include cheque obligations in the short-term cash view with an allowance for timing uncertainty.