It's almost old fashioned to use the term "balancing your checkbook," but it's still the best way to make sure you don't end up paying unnecessary fees.
The principle of balancing what the bank claims you have compared to what you think you have is the same whether you compare your check/debit register balance to the bank balance from your monthly paper statement or from the internet.
Before you begin, make sure you have recorded in your register every cent that went into or out of the account.
Go back to your deposit receipts and sales receipts and make sure they are all recorded.
Complete your running total, and you're ready to begin.
Put the bank balance and your register balance side-by-side on a piece of paper or in a spreadsheet.
This is where you begin your comparison.
If the bank balance is higher than your register balance, either you haven't recorded a deposit, or a check hasn't cleared.
If none of these adjustments work after you've gone through all the steps, it's possible the bank has made a mistake.
Make sure you have the documents necessary to clear it up, and talk to your banker.
Going through your register monthly is an important part of tracking your money, and will pay dividends in the end.
If you happen to own a small business, make sure you look at the bank statement before handing it to your bookkeeper to be certain all cleared checks were signed by you.
The principle of balancing what the bank claims you have compared to what you think you have is the same whether you compare your check/debit register balance to the bank balance from your monthly paper statement or from the internet.
Before you begin, make sure you have recorded in your register every cent that went into or out of the account.
Go back to your deposit receipts and sales receipts and make sure they are all recorded.
Complete your running total, and you're ready to begin.
Put the bank balance and your register balance side-by-side on a piece of paper or in a spreadsheet.
This is where you begin your comparison.
If the bank balance is higher than your register balance, either you haven't recorded a deposit, or a check hasn't cleared.
- Look down the list of the bank deposits and compare with your deposit receipts, confirm the extra deposit is correct, and add it to your side of the paper.
- If any checks you wrote are not listed in the cleared checks, subtract them from the bank balance.
- If your register balance is higher than the bank balance, maybe you forgot to record a check or debit transaction, there were fees charged to you, or the bank has not recorded a deposit you made.
- It's easy to forget to record a check or debit purchase; cross check with your sales receipts to be certain the amount the bank took from your account was correct.
- Fees seem to be constant with most banks; know the fees you are required to pay, and record them in your register.
- If a deposit is missing in the bank listing, make sure you have a deposit receipt as proof.
If none of these adjustments work after you've gone through all the steps, it's possible the bank has made a mistake.
Make sure you have the documents necessary to clear it up, and talk to your banker.
Going through your register monthly is an important part of tracking your money, and will pay dividends in the end.
If you happen to own a small business, make sure you look at the bank statement before handing it to your bookkeeper to be certain all cleared checks were signed by you.