This should be all items you didn’t place a check next to in step one. Next, list out all of the checks, deposits, and other transactions that are on your checkbook register, but not on the bank statement. Take a blank sheet of lined paper and write down your bank statement ending balance. The second step is to determine what your bank doesn’t know. Step Two: Note What the Bank Doesn’t Know Your register should now be up-to-date with all of the items that your bank is aware of. If there are items on your statement (checks, deposits, ATM withdrawals, and debit card purchases) that you neglected to write in your register, then do so now. Place a checkmark next to all of the items in your register that are on your statement. The first step is to record all of the transactions from the bank statement. Step One: Record Transactions from Your Bank Statement your own record) and the bank statement (i.e. Remember, this is all you are doing: accounting for the differences between your checkbook (i.e. Okay, now that we have a completed checkbook to work with, break out your latest checking account statement, and let’s reconcile the two. Total it up and you now have a checkbook balance. Now take those receipts and carbon copies and make a note of each transaction. Simply take the ending balance from last month’s bank statement and jot it down as the beginning balance on your register. If you didn’t keep track, but you have all of your debit card receipts, deposit receipts, and carbon copies of your checks, then you can play catch-up and get your checkbook register up to speed. If you aren’t doing this, and you want to be able to balance your checkbook at the end of the month, then you need to start keeping track. It goes without saying that to balance your checkbook, you need to have a checkbook register with a running balance. Here’s how to balance a checkbook… Get Ready: Preparing Your Checkbook Register Everyone should be able to perform this simple financial exercise. Next, you can simply keep your debit card receipts and deposit receipts and periodically check them against your bank records using your online account access.īut I’m not here to explain why this isn’t a good idea. I would argue that we can achieve the three goals above using a simpler method.įirst, you can simply keep a sizable cushion in your checking account so that you’ll never have to worry about an overdraft. Since we don’t write as many checks these days, there isn’t much of a worry that we’ll not have enough money to cover a check that’s still out there. Today, however, we can understand our money situation in easier ways: by logging on to our bank’s online account access page, by viewing our bank’s mobile phone app, or by seeing all of our accounts at one time using a service like Empower. Is Balancing a Checkbook Still Necessary? …so that you don’t write a check for more than you have in your account. identify your errors (more likely), and.If your latest statement with the bank says that you have $1,000 in your account, and your running checkbook says that you have $1,100, then you need to reconcile the two amounts and determine what’s causing the difference.īalancing your checkbook helps you achieve three goals: When you balance a checkbook, what you are doing is reconciling the balance that you have in your checkbook with the bank’s balance. What Does it Mean to Balance a Checkbook? This is definitely one of those skills everyone should have, regardless of the fact that many of us don’t write more than one check each month. One of the first money lessons my Dad taught me was how to balance my checkbook (i.e.
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