DO NOT WRITE BELOW THIS LINE Blank Endorsements Should match payee’s name Signed with endorser’s name only (endorser is payee from front of check) Can be cashed by anyone who holds the check with a blank endorsement! Don’t use blank endorsement before you are ready to cash or deposit! X Jane Doe DO NOT WRITE BELOW THIS LINE 1

Special Endorsement Juan Delgado Transfers payment of a check to someone else. Payee signs check , then writes “pay to the order of” another person Can be used to make payment on a debt Juan is payee on check Juan owes Maria money Juan transfers payment to Maria. Debt = money owed Might also endorse: Juan Delgado pay over to Maria Fernandez 2

Full Endorsement Example Transfers payment to someone else Payee signs the check over to another person to receive payment Who was payee on check? John X Pay to the order of Jane Doe John Doe DO NOT WRITE BELOW THIS LINE 3

Restrictive Endorsement Limits use of the check so it can be deposited only to endorser’s account. Safest type of endorsement Cannot be cashed by a thief or someone who finds the check Best to use when mailing a check for deposit or when using the ATM for deposit. 4

Check Writing Procedures Write information in the check register first, (ensure checks are written in numerical order) Write the date the check is written. Write the payee’s name. Write in the numerical amount of the check. Write in the amount of the check in words. Write in the purpose of the check. Sign the check. 5

How Do I Know the Amount in my Checking Account? Keep a Check Register or Check Stub Balance Subtract checks written (or debit card transactions) from balance Add deposits to balance Keep a running balance after writing checks or making deposits Check Register is YOUR documentation of how much money is in your account? What if mistakes are made? You will make corrections when you reconcile (balance) bank statement

Bank Reconciliation What is a bank reconciliation? Document that shows two equal balances Your record of your checking account The bank’s record of your account Do they have the same $ balance? Yes, or reconciliation is not complete! Reconciliation helps to find/correct any mistakes in your register! 7

Outstanding Checks What is an outstanding check? Outstanding checks are checks that have not cleared (been deducted from) the bank statement balance. Need to know items outstanding in order to reconcile statement How to know if checks are outstanding: Find out which checks /deposits are outstanding by comparing the bank statement with the checkbook register

Reconciling a Checkbook Makes sure the bank’s records agree with your records 1. Check for outstanding checks and deposits 2. Check the checks, deposits, ATM activity on the bank statement to make sure that your records are correct 3. Make adjustments to the bank statement and your records to ensure that you and the bank have the same amount of money 4. Reconcile every statement upon receipt 9

Steps in a Bank Reconciliation Obtain the monthly bank statement. Determine checks paid. Find differences between the monthly bank statement and monthly check register. Calculate the adjusted balance. If the balances do not agree, check the steps again and recalculate. Account balances must be equal! 10