Business Checks – How to Use Registers to Detect Fraud

It is essential for every person who owns a checkbook to monitor his bank statement. You can unearth a check fraud in this manner. So how is it possible to discover a check fraud? One simple and widely used method is through the use of check registers.

Check registers are used to maintain a record of all your bank transactions. You should enter the details of all the checks that you write and deposit in the bank, in the check register. You should also save your ATM and debit card receipts and record them in your register. Ideally every time you receive your bank statement you should tally the ending balance of the bank statement with your check register. Chances are that there will be a mismatch. The reason for the mismatch is that the bank statement will reflect the balance as on the date of the statement. On the other hand, your check register will reflect the balance as on the current date.

To find out if there is a check fraud, you will need to tally the balances of bank statement and the check register. You can do this by the following method:

From the bank balance, deduct the following

oAny interest or other amounts deposited in the bank, for example salary, which has not been recorded in the check register

oChecks written by you but not presented at the bank

oThereafter, add the following

oDeposits made by you but not recorded in the bank statement

oInterest charged and bank charges

Finally match the details of withdrawals such as debit card purchases, automatic debit payment and ATM withdrawals and the checks that you have written. Through such a detailed scrutiny, you will be able to discover those checks that you have not written but were presented at the bank or any other withdrawal that you not made.

You can obtain check registers from the check company that prints your personal checks. Some check companies give complementary check registers to first time clients or those who buy personal or business checks in bulk. If you have run out of stock of your registers, you can purchase them from these check companies. By conscientiously using check registers you can prevent the occurrence of check fraud.