How to Balance a Checkbook: 14 Steps with Pictures

There are several actions that could trigger this block including submitting a certain word or phrase, a SQL command or malformed data. When you’re creating new goals, Gomez notes that you shouldn’t feel like you’re constantly depriving yourself through a budget. If Step 1 doesn’t solve the issue, you can determine where errors may lie with simple division. Banking services provided by Community Federal Savings Bank, Member FDIC. Experian websites have been designed to support modern, up-to-date internet browsers.

Step 6: Check for Previous Months’ Outstanding Items

Pick a time of the day when you’re free every day and log into your online banking. Compare your checkbook register to the day’s transactions and check off those that show as completed in your account. Leave and uncleared transactions in your check register unchecked. With today’s smartphones, we basically carry computers everywhere we go, so checking our checking account balance is as easy as logging onto our bank’s mobile app or online banking website. Budgeting apps are another option for managing checking account activity.

What are the different types of checking accounts?

You may prefer online and mobile banking for checkbook balancing if you don’t write paper checks or only write a few each month. Keep in mind that checks won’t show up in your transaction history until the transaction has been posted, so you still need to keep track of those amounts when calculating your current balance. In decades past, “balancing your checkbook” was a much more literal term. It involved writing down individual transactions in a check register as you spent and deposited funds throughout the month, tracking your ending balance at all times. Before debit cards, these transactions were usually made in the form of paper checks.

1. Your credit union or bank will issue a regular account statement, typically once a month.
2. So, how do you balance a checkbook, particularly if you don’t write checks or simply don’t want to use a paper register to track transactions?
3. Include the date of the transaction, a description of the transaction, and the amount.
4. If you’ve combed through your account statements and still can’t get your checkbook to balance, you should call your bank to ask about any pending debit or credit charges you may have overlooked.
5. Relying on these apps alone to balance your checkbook can be problematic, however, if you’re not keeping a close eye on each account individually.

Daily Check-Ins

Add all your outstanding deposits to your statement ending balance, then subtract all outstanding debits. These steps help you keep your checkbook balance up to date so you always know exactly how much money you have in your checking account and there are no unrecognized transactions. Reconcile it against the information that’s listed in your check register. This simply means going through your statement and your checkbook register line by line and matching up transactions. Balancing your checkbook is one of those crucial life skills that you need to know.

Keep track of your transactions in a register — a checkbook register, a notebook or a spreadsheet on your computer can all work equally well. This list should include your purchases, withdrawals, deposits and bank charges. Nearly 40% of Americans rely on mobile banking to manage their money.

If you come up with the same discrepancy a second or third time, consider whether you made a math mistake or if there’s another issue. See NerdWallet’s picks for the best high-yield online savings accounts. If you find a discrepancy here, make the necessary changes and rebalance your checkbook. Offer pros and cons are determined by our editorial team, based on independent research. The banks, lenders, and credit card companies are not responsible for any content posted on this site and do not endorse or guarantee any reviews.

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. Writing down transactions in a checkbook register is one way to keep track of them, but there are also options for balancing your checkbook digitally.

This will be your actual balance, which is a better picture of how much you have to spend because it includes payments that might not have hit your bank account yet. In this case, you can usually spot the issue by going through your online transaction history and locating the missed charge. You may also want to https://www.kelleysbookkeeping.com/ double check that your autopay transactions are processed for the amount you expected, and that your bill didn’t increase from one month to the next. 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.

Verify the amount you entered in the check register matches the debit amount on your statement. Place check marks on your check register and statement next to all matching transactions. Pull out previous statements with uncleared outstanding transactions, such as checks and deposits. Look through your statement to see if these outstanding standard deduction vs itemized deductions items cleared on this statement. Make note of the dates, descriptions, and amounts of any deposits showing in your check register but not on your statement. First, balancing your checkbook helps you know exactly how much money you have remaining, including any pending or outstanding checks that haven’t been cashed or deposited yet.

You’ll likely find that there is a bit of a lag between your purchase and when it posts to your account, but checking your bank’s mobile app or current statement log is a great way to double-check your records. If you’re having trouble balancing your checkbook, it may be because you have transactions that are unaccounted for, either on your statement or in your checkbook register. Double-checking transactions or calling the bank could help you find an overlooked credit or debit. You can also review your register for mathematical errors that would result in an incorrect balance. Using a spreadsheet or ledger can also help you stay on top of your checking account balance. With a spreadsheet, you can record deposits and withdrawals while creating formulas that automatically repopulate your current account balance.

It’s useful for paying bills, depositing paychecks, sending money, and making purchases using a linked debit card. If you’re one of them, it’s important to understand how to balance a checkbook to keep track of debit and credit transactions. Balancing your checkbook https://www.kelleysbookkeeping.com/is-it-m-for-thousand-and-mm-for-million-or-k-for/ helps you track your cash flow and identify any errors or signs of fraud. To balance a checkbook, you’ll need to choose your recording method, log your beginning balance, add account transactions and compare your check register to your bank statement.

Before using the checkbook balance calculator be sure any interest and other automatic deposits or withdrawals in your bank statement have been included in your checkbook balance. To reconcile your transactions, go through your bank statement line by line. You’re looking to match up the “cleared” charges that are on your bank statement (meaning charges that hit your account and have been paid) with charges that you’ve listed in your register. Transactions you don’t recognize, duplicate transactions, or incorrect charge amounts can all raise red flags. If you find one such charge, you may need to dispute the transaction with the merchant, alert your bank to a potential issue, and even freeze your account and/or debit card until it’s resolved.