How to Balance a Checkbook: 14 Steps with Pictures

If you still can’t find the problem with your checkbook being imbalanced, contact your bank for further assistance reconciling your checkbook. Perhaps there’s a discrepancy in a pending transaction or a hold on your account that you’re unaware of that’s preventing you from having a balanced checkbook. If an outstanding transaction hasn’t cleared your statement in 60 days, contact the person or company you paid to see if there breakeven point bep definition is an issue. If the person or company lost or never received the check, call your bank to stop payment. Reviewing your bank statements and comparing them with your own records regularly will help verify that you and your bank are on the same page. If you’d like the accountability of recording your own transactions but need a little more structure, you might consider using an accounting program, such as Quicken or YNAB.

If I use online banking, do I still need to balance my checkbook?

Record any pending transactions in your checkbook register, including both debits and credits, as well as checks you’ve written that have not cleared yet. Include the date of the transaction, a description of the transaction, and the amount. Some people like to use duplicate copy checks so they always have a record of who they issued a check to and for what amount. If you want to match your current account balance to the balance showing on your bank statement, you can do that by factoring in transactions posted after the statement date. Once you add back withdrawals or subtract deposits, your current balance and statement balance should be the same. Reconcile it against the information that’s listed in your check register.

Compare the balance in your checkbook register vs. bank statement

Commit to balancing your checkbook on a weekly basis, which may be easier than trying to do it once a month or less often. Recording transactions daily, then balancing at the end of the week, can help keep the system as simple and error-free as possible. If there is a problem at some point, it’s much more difficult to wade https://www.quick-bookkeeping.net/the-goodwill-value-calculation-of-a-retail-store/ through months of transactions to figure it out. If you’ve balanced your checkbook every month, the most you’ll ever have to do is look at the most recent month’s transactions. Sometimes people make such a mess of their checkbook by not regularly balancing that they have to close out their account and open another one.

Don’t Write Checks? It’s Still Good to Balance Your Checkbook

You may use your checkbook ledger, the back of your bank statement, a notebook, or a spreadsheet. There is also no shortage of financial apps and software to help with balancing your checkbook. In this case, compare all clarity on the classification of account your canceled checks and receipts to your check register to find the transposed number. As with your outstanding payments, there may be a space on the back of your monthly statement to note these outstanding debits.

Step 5: Verify All Check Payments

The checkbook register, also known as your checkbook ledger, is a little booklet in your checkbook where you’ll record details about checks you’ve written out. Do you faithfully balance your checkbook to the penny each month? Balancing your checkbook is one of the most basic habits for good money management, yet millions of Americans don’t do it on a regular basis.

Setting up text or email notifications can make it easier to keep track of new credit and debit transactions without having to log in to your account. This can happen due to a math error, a transposed number, an unrecorded transaction, or possibly a misapplied debit or credit. Despite this convenience, the balance you see on your bank’s app may not be accurate. Not all transactions clear immediately, especially if you write a check. What you probably have at all times, however, is your cell phone.

1. You may prefer using a budgeting app if you have multiple bank accounts or credit cards, as it’s easier to see them all in one place.
2. Make note of the dates, descriptions, and amounts of any check, debit, or ACH payments listed in your check register but not on your statement — the ones without checkmarks.
3. Compare your checkbook register to the day’s transactions and check off those that show as completed in your account.
4. In this scenario, gather backup to prove your case for why it’s an error and contact the bank for instructions on how to fix the issue.

There may be a space on the back of your statement to note outstanding deposits. Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page. If you’ve tried all these and the balances still aren’t matching up, try taking a break for a while.

If you miss this transaction and fail to balance your checkbook at the end of the month, you could overdraft your bank account and end up with a large overdraft fee. Apps like Mint, Personal Capital, You Need A Budget (YNAB), and others link with your checking account and track your transactions. You often must log in and categorize these transactions, which will be the perfect time to also check these transactions off in your check register. Be careful of unfamiliar charges, such as overdraft fees, on your statement that you hadn’t noted in your register. If you still can’t balance the figures, you can ask your bank for an extensive review of your transactions — but note that it may charge an account research fee of about $25 an hour. If your bank or credit union offers online banking, you can see an up-to-date list of your transactions online.

Emily Guy Birken is a former educator, lifelong money nerd, and a Plutus Award-winning freelance writer who specializes in the scientific research behind irrational money behaviors. Her background in education allows her to make complex financial topics relatable and easily understood by the layperson. She is the author of four books, including End Financial Stress Now and The Five Years Before You Retire. Here’s what you need to know about how to balance a checkbook in a paperless world.

Starting with the first transaction you enter, subtract the amount from your available balance—in the case of a deposit, add it to the balance. It’s true that fintech can make managing your money easier but there are still very good reasons to make balancing your checkbook part of your financial routine. Assuming all the transactions from your statement and your register match, the end balance showing for each one should also be the same.

If you no longer receive paper statements, log on to your online banking system and print out the current statement. The old-school method of checkbook balancing assumed that you would carry a paper check register with you everywhere you went, and that you would record your transactions by hand. It also assumed that your transactions consisted https://www.quick-bookkeeping.net/ primarily of paper checks going into and out of your account. When you’re done reconciling your transactions, add up the cleared charges on your checkbook register or spending tracker. For example, if you have $1,000 in your checking account and spend $50 on food, you’ll adjust your balance to $950 after you enter it in your register.

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