A detailed record of financial transactions relating to a checking account is maintained in a dedicated log. This log documents all deposits, withdrawals, checks written, electronic transfers, and any associated fees. Each entry typically includes the date of the transaction, a description of the transaction, and the amount debited or credited to the account. An updated balance is calculated after each entry to provide a running total of available funds. For instance, if a check for \$50 is written from an account with a previous balance of \$500, the log would reflect the check, the \$50 debit, and a new balance of \$450.
Meticulous record-keeping offers numerous advantages for personal and business finance management. It enables accurate tracking of income and expenses, facilitates reconciliation with bank statements, helps identify errors or fraudulent activity, and provides a clear audit trail for tax purposes. Historically, these logs were physical booklets, but increasingly, digital versions are utilized through online banking platforms or spreadsheet software, offering greater convenience and accessibility.
