Process for electronically maintaining financial records, especially for checkbook balancing and rectification

A process for maintaining financial records, such as checkbook balances, in which a checking account user employs a hand-held calculator to record the usual checkbook data electronically. The calculator is programmed to calculate and memorize a first running balance dependent upon numeric data entered by the user. A financial institution maintains a second running balance dependent upon the user's checks and deposits and periodically provides the user with a magnetic card on which the second running balance and other data have been recorded. The card is read by the user's calculator to balance the user's checkbook.

BACKGROUND OF THE INVENTION 
This invention relates to the maintenance of financial records and is more 
particularly concerned with a process for recording, balancing, and 
rectifying data normally maintained in a checkbook. 
State-of-the-art technology exists for recording checkbook data 
electronically, and even for electronic check writing. See, for example, 
U.S. Pat. Nos. 4,222,109, issued Sept. 9, 1980; 4,308,588, issued Dec. 29, 
1981; and 3,920,979, issued Nov. 18, 1975. Personal portable terminals for 
financial transactions are also known. See, for example, U.S. Pat. No. 
4,277,837, issued July 7, 1981. It has also been proposed to substitute 
for a conventional passbook (that requires passbook printing machines) a 
"card" that is capable of providing the same functions of a passbook plus 
some features of an ordinary calculator. The "card" is coupled to a card 
reader of a separate processing unit to transfer data thereto. See 
Japanese Pat. No. 56-14369. However, despite the ready availability of 
sophisticated hardware and software for conducting a plethora of financial 
transactions, the ordinary task of monthly checkbook balancing and 
rectification remains inordinately difficult and tedious. In fact, the 
task of comparing a balance of checks and deposits as recorded on a bank 
statement with a checkbook balance is so burdensome that many users of 
checking accounts simply accept the bank statements as correct and ignore 
any discrepancies. The present invention provides a simple process for 
solving this problem. 
BRIEF DESCRIPTION OF THE INVENTION 
In a preferred embodiment of the invention, checkbook stubs are eliminated, 
and the handwritten data normally recorded therein is entered into a 
memory of a hand-held calculator. The calculator is pre-programmed to 
compute and record a first running balance from the data entered. Instead 
of sending the usual bank statements to checking account users, a bank or 
other financial institution responsible for disbursing and receiving funds 
corresponding to transactions entered in the hand-held calculator sends to 
the checking account user a machine-readable record, such as a magnetic 
card on which the usual bank statement information is recorded. The user 
inserts the card into the calculator, which is pre-programmed to compare 
the first balance in the calculator memory with a second balance on the 
card and to assist the user with the rectification of any discrepancies. 
The tedious task of balancing a checkbook and rectifying any differences 
between the checkbook balance and a bank statement balance is eliminated. 
In one of its broader aspects, the invention is a process of maintaining 
financial records, which comprises providing a user with a unit having 
data entry means, memory means, and calculating means, entering into said 
memory means, via said data entry means, machine-readable data, including 
numeric data, concerning each of a plurality of financial transactions of 
the user, calculating, via said calculating means, and storing in said 
memory means a first running balance depending upon the totality of said 
numeric data, providing data, including numeric data, concerning said 
financial transactions to a remote financial institution, providing at 
said financial institution a machine-readable record of a second running 
balance dependent upon the totality of the numeric data provided to said 
financial institution, electronically comparing, from time to time, said 
first running balance in said memory means with said second running 
balance in said record, and displaying the results of said comparing.

DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENT 
A preferred embodiment of a process in accordance with the invention will 
be described with reference to preferred apparatus for performing the 
process of the invention, particularly for the maintenance of checkbook 
financial records, but the invention has broader utility. In accordance 
with the invention, each user of a checking account is provided with a 
hand-held calculator, such as the unit 10 shown in the drawing. The 
calculator may have a set of alphanumeric keys 12 and a display 14 (such 
as an LCD display). Alphanumeric data normally entered on checkbook stubs 
to record check writing and bank deposit transactions is instead entered 
into the calculator via the keys 12, or alternatively via voice signals (a 
microphone input being indicated at 16). The hand-held calculator has 
sufficient memory to retain the entered data and the results of 
calculations to be described. The calculator is pre-programmed to record 
the data entered and to compute from the numeric data a running balance 
representing the net of check writing and bank deposit transactions. 
Information concerning the various transactions and the running balance 
can be called up by appropriate key strokes and displayed. The hand-held 
calculator has a self-contained power source, such as long-lasting or 
rechargeable batteries, or solar cells 17, and may also be energized by an 
AC to DC converter. The memory, which must have sufficient storage 
capacity as noted above, may be magnetic or semi-conductor, for example. 
The calculator has conventional hardware and software for processing and 
recording data digitally, as is well known in the art. In the preferred 
form, the calculator is also capable of reading data recorded magnetically 
on cards (so-called "magnetic cards"). One such card 18 and a slot 20 for 
receiving the same are illustrated in the drawing. Apparatus based upon 
the technology embodied in the Hewlett-Packard 71B programmable calculator 
with the 82400A Card Reader may be employed in the invention, although it 
will be apparent that the sophisticated computations of which this 
apparatus is capable are not required by the invention. Magnetic tape 
cassettes may also be employed as the memory of the calculator (and as a 
bank statement recording medium) for use with suitable recording and 
playback units, such as the Sharp EL 5500II provided with the CE-126P 
Printer/Cassette Interface and a cassette recorder. 
In the preferred embodiment the responsible financial institution maintains 
records of the checks that clear and deposits that are made and 
periodically sends to the checking account user a magnetic card 18 on 
which has been recorded the same type of information that normally would 
be provided in a bank statement. A secret personal identification number 
(PIN) may be recorded on each magnetic card so that only the corresponding 
checking account user may have access to the recorded data. 
To check the accuracy of the running balance held in memory in the 
hand-held calculator, the user inserts the magnetic card 18 into slot 20 
of the calculator 10 and instructs the calculator (by appropriate key 
strokes) to read and process the data on the card. The calculator is 
pre-programmed to compare data on the card with data previously entered by 
the user. The check number may be employed as a sort parameter. The 
calculator displays any disagreement as to check amounts, checks not 
entered or not cashed, etc., subtracts any monthly service charge, makes 
any necessary corrections to the balance, and displays the corrected 
balance. These calculations can be completed within a few seconds. If 
desired, all of the data held in the memory of the calculator, including 
the results of any calculations, may be read out to a printer through a 
conventional output port. The following is a typical flow chart which may 
be employed to implement the process of the invention. 
__________________________________________________________________________ 
KEYBOARD ENTRY MODE 
__________________________________________________________________________ 
1.PRINT "PRESS `K` FOR KEYBOARD ENTRY, `M` FOR MAGNETIC STRIP ENTRY, 
OR `R` TO REVIEW OR CORRECT ENTRIES" 
INPUT `K` 
##STR1## 
INPUT `C` INPUT `D` 
2.PRINT "ENTER CHECK NUMBER: LAST 
3.PRINT "ENTER DEPOSIT NUMBER: LAST 
##STR2## 
##STR3## 
INPUT CHECK NO. INPUT DEPOSIT NO. 
STORE CHECK NO. STORE DEPOSIT NO. 
PRINT "ENTER PAYEE" PRINT "ENTER AMOUNT" 
INPUT PAYEE INPUT AMOUNT 
STORE PAYEE STORE AMOUNT 
PRINT "ENTER AMOUNT" PRINT "ENTER DATE" 
INPUT AMOUNT INPUT DATE 
STORE AMOUNT STORE DATE 
SUBTRACT AMOUNT FROM 
CURRENT BALANCE 
PRINT "ENTER DATE" PRINT "ENTER NOTES" 
INPUT DATE INPUT NOTES 
STORE DATE STORE NOTES 
PRINT "ENTER NOTES" PRINT "ENTER FLAG" 
INPUT NOTES INPUT FLAG 
STORE NOTES STORE FLAG 
PRINT "ENTER `T` IF TAX DEDUCT- 
GOTO 1 
ABLE OR OTHER LETTER FOR 
SPECIAL FLAGS" 
INPUT FLAG 
STORE FLAG 
PRINT "ENTER `L` IF LAST CHECK" 
IF INPUT = `L` THEN GOTO 1 
GOTO 2 
__________________________________________________________________________ 
MAGNETIC STRIP ENTRY MODE 
__________________________________________________________________________ 
1.PRINT "PRESS `K` FOR KEYBOARD ENTRY, `M` FOR MAGNETIC STRIP ENTRY, 
OR `R` TO REVIEW OR CORRECT ENTRIES" 
INPUT `M` 
PRINT "INSERT MAGNETIC STRIP" 
INPUT DATA FROM MAGNETIC STRIP 
STORE DATA FROM MAGNETIC STRIP 
REM:DATA FROM MAGNETIC STRIP INCLUDES CLEARED CHECK NUMBERS, 
AMOUNTS, DATES AND SIMILAR INFORMATION ON DEPOSITS RECORDED 
BY THE BANK, SERVICE CHARGES AND THE CURRENT BALANCE. IT IS 
STORED AND LABELED AS DATA FROM THE BANK STATEMENT. 
PRINT "BANK STATEMENT LOADED: ENTER `B` TO BALANCE" 
INPUT `B` 
COME BANK STATEMENT CHECK AND DEPOSIT AMOUNTS WITH KEYBOARD 
ENTERED AMOUNTS 
STORE DISCREPANCIES 
ADD DISCREPANCIES 
ADD UNCLEARED CHECKS 
SUBTRACT DISCREPANCIES AND UNCLEARED CHECKS FROM 
CURRENT KEYBOARD BALANCE TO GET TRIAL BALANCE 
COME TRIAL BALANCE WITH BANK STATEMENT BALANCE 
STORE BALANCE DISCREPANCY 
IF BANK BALANCE&gt;TRIAL BALANCE PRINT "BANK OVER $XX.XX" 
IF BANK BALANCE&lt;TRIAL BALANCE PRINT "CHECKBOOK OVER $XX.XX" 
IF BALANCE DISCREPANCY=.0. PRINT "PERFECT BALANCE" 
PAUSE 
PRINT "SERVICE CHARGE IS $XX.XX" 
PAUSE 
REM: A MESSAGE FROM THE BANK MIGHT BE PRINTED HERE. 
PAUSE 
##STR4## 
INPUT `D` INPUT `C` 
PRINT DISCREPANCIES 4.ADD BALANCE DISCREPANCY TO 
REM:THE `S` KEY MAY BE USED TO 
CURRENT CHECKBOOK BALANCE 
THE SCROLL DISPLAY AFTER STORE CORRECTED CHECKBOOK 
READOUT BALANCE 
PRINT "ENTER `C` TO CORRECT 
GOTO 1 
CURRENT CHECKBOOK BALANCE 
OR `R` TO REVIEW OR 
CORRECT CHECKBOOK ENTRIES 
OR POWER OFF" 
INPUT `C` OR `R` 
IF INPUT=`C` GOTO 4 
GOTO 5 
__________________________________________________________________________ 
REVIEW OR CORRECT MODE 
__________________________________________________________________________ 
##STR5## 
INPUT `R` INPUT `C` 
PRINT"ENTER STARTING DATE (XX/XX/XX) 
PRINT "ENTER DATE (XX/XX/XX) 
OR NUMBER(XXXX)" OR NUMBER (XXXX)" 
INPUT DATE OR NO. INPUT DATE OR NO. 
PRINT "ENTER `C` FOR CHECKBOOK OR 
PRINT "ENTER `C` FOR CHECK 
`B` FOR BANK" OR `D` FOR DEPOSIT" 
INPUT `C` OR `B` INPUT `C` OR `D` 
PRINT "ENTER `C` FOR CHECKS OR `D` 
`D` FOR DEPOSITS" 
INPUT `C` OR `D` 
IF INPUT=`C` THEN PRINT CHECK 
PRINT "ENTER `A` TO CORRECT 
DATA FROM START DATE/NO. AMOUNT,`D` TO CORRECT 
FROM CHECKBOOK OR BANK 
IF INPUT=`D` THEN PRINT DEPOSIT 
DATE, `M` TO CORRECT 
DATA FROM START DATE/NO. MESS. OR `F` TO CORR 
FROM CHECKBOOK OR BANK ECT FLAG" 
GOTO 1 PRINT "ENTER NEW VALUE" 
INPUT VALUE 
STORE VALUE 
GOTO 1 
__________________________________________________________________________ 
While a preferred embodiment of the invention has been shown and described, 
it will be apparent to those skilled in the art that changes can be made 
in this embodiment without departing from the principles and spirit of the 
invention, the scope of which is defined in the appended claims. For 
example, the "check stub" data may be recorded on magnetic cards by the 
hand-held calculator, and the cards may be transported to the responsible 
financial institution, as by mailing the card to a bank office or carrying 
the card to an automatic teller machine, at which the card is read and 
calculations performed electronically for checking account balancing and 
rectification.