Personal & Business Record Keeping Concept 3

LEQ 1 What are the basics of record keeping for personal and business accounts?

Personal & Business Record Keeping Checking Accounts - A written order requiring the bank to pay previously deposited money to a 3 rd party When you write a check your identification should be requested When you cash or deposit a check you must endorse it You should reconcile your account each month

Personal & Business Record Keeping Loans – Business must clearly state purpose of loan and provide financial evidence that they can repay the loan Collateral Property a borrower pledges to assure repayment Unsecured loan Not backed by collateral Secured loan Backed by collateral Mortgage Agreement between bank and customer for purchase of a house

Personal & Business Record Keeping Interest Rates – this is the way banks earn money; when loaning money they charge interest for the life of the loan Rates are based on supply &demand for the money at the time of the loan Rates can change daily Prime Rate is the lowest rate at which banks loan money and is given to people with the best credit on large sums of money

Personal & Business Record Keeping Direct Deposits – is an EFT of a paycheck directly from the employer’s bank to the employee’s bank Allows immediate use of funds No waiting in line to cash or deposit checks Still will receive a hard copy of your check with your tax info. Present

Personal & Business Record Keeping ATM Transactions – Automated Teller Machine; a computer terminal that enables customers to deposit, withdraw, or transfer funds with your card They are usually located in convenient places for use at any time They also help banks lower their operating expenses by reducing the number of employees needed Sometimes a withdrawal fee may apply

Personal & Business Record Keeping LEQ 1: What are the basics of record keeping for personal and business accounts?