When a bank customer receives a statement in the mail, the statement provides a list of the transactions that took place in the previous month. Transactions are both incoming and outgoing, adding up to a final total that is displayed as the current account balance for the bank’s customer’s convenience. Without the account statement, the customer would have more uncertainty about the content of the account. With the account statement, the bank customer knows how much he spent, how much he earned and what the current status is.

In fact, as soon as the bank customer starts using the money linked to the account, it kicks finance back into gear. The most recent statement is no longer up to date. One way to correct this problem is to use a checkbook register. As fancy as it may sound, it’s simply a manual accounting device that keeps track of transactions as much as the statement of account does. Except that the checkbook register remains with the customer at all times.

There are compelling reasons why one should keep track of the level of money in the bank account. Any time money is attempted to be used when there are insufficient funds, a penalty or fee may be triggered. The penalty does not only come from the bank, but can also come from the recipient of the payment. This increases transaction complexity and irritates relationships with vendors who expect prompt payment.

What types of transactions specifically incur such penalties? Writing a check for rent, for example, that is based on insufficient funds can trigger the penalty. In this case, the relationship with the owner is also at risk. This is in addition to triggering a bounced check fee in addition to a frequently issued bounced check fee. Even using an ATM as a credit card at the grocery store for a $25 bag of groceries can result in a surcharge fee when the bank covers the cost but forces the customer to pay a lot.

Checkbook registers reduce the chances of such errors occurring. For people who have trouble managing their finances but also find it too much of a burden to keep a checkbook register, there are electronic alternatives that are faster and easier to use. These are simply calculator-like devices that can be easily carried around. They have special entry keys for the different types of transactions that one can encounter in connection with the checking account.

Very recently, the US Senate implemented a series of consumer-friendly financial rules related to how banks charge overdraft fees (this fee is incurred every time a bank steps in and replenishes a customer, whether the customer wants it or not). Basically, a bank must ask a customer to opt out of their overdraft fee program. The flip side, however, is that without the overdraft fee, checks will bounce and cause other kinds of problems. So it’s even better to keep finances in check with devices like the checkbook register.