How do I balance my checkbook?
Eight Steps to Balancing
- Record Interest Earned. …
- Record Service Charges, Etc. …
- Verify Deposit Amounts. …
- Match All Check Entries. …
- Check for Outstanding Items from Previous Statements. …
- Verify Other Debits on Statement. …
- List All Outstanding Checks. …
- Balance.
How do you balance your checkbook step by step?
How to Balance a Checkbook: Step-by-Step
- Step 1: Recording your transactions. …
- Step 2: Review your monthly bank statement. …
- Step 3: Check that your balances match. …
- Step 4: Address any errors or fraudulent activity. …
- Step 5: Draw a line in your register. …
- Step 6: File your bank statement.
Do I need to know how do you balance a checkbook?
Balancing your checkbook will help you make sure you have enough money in your account to cover all of your withdrawals and payments. It’s a way to have peace of mind knowing that your check won’t bounce or your debit card won’t be declined next time you’re at the checkout line.
Why can’t I balance my checkbook?
Even if you record all of your checking account charges, withdrawals, checks, and deposits in your checkbook, your balance may not match the amount on your bank statement. This could be due to transactions that haven’t yet registered at your bank—or it could be an error that you or the bank made.
What does it mean to balance checkbook?
Balancing your checkbook, which is also known as reconciling your account, is basically about making sure that the records you have kept for your financial transactions match those the bank lists on your statement.
How often should I balance my checkbook?
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.
What are three things you need to balance your checking account?
Here’s how you do it in five basic steps:
- Step 1: Write Down Your Transactions Often. If money comes in or out of your checking account, write it down in the check register or make a spreadsheet. …
- Step 2: Open Your Checking Account Statement. …
- Step 3: Check All Transactions. …
- Step 4: Update Your Balance. …
- Step 5: Repeat.
How long should you keep checkbook registers?
Some people recommend keeping checkbook registers for at least 12 months in case “issues” (questions about payment) arise and because some checks may take a while to clear.