A checking account is a bank account in which a company deposits money and can subsequently withdraw the money by writing a check, by using a debit card, arranging for electronic transfers, etc. Except for the uncollected funds associated with recently deposited checks, the money in a checking account is available on demand. (Hence, a bank will refer to the amounts in its customers' checking accounts as demand deposits.)
The balances in checking accounts are considered to be money and will be reported as part of a company's current asset cash. (The bank will report its customers' checking account balances as a current liability.)
As part of its internal controls, a company should reconcile its checking account balance with the balance in the bank's records. This process is known as the bank reconciliation.