Reconciling your bank statement with your checkbook is not as difficult as it appears. Simple addition and subtraction math skills are all that you need.
Reconciling a bank statement is the process of verifying the accuracy of the check register (list of entries) by comparing entries in the register with the entries in the bank statement.
Add all of your checking account deposits together. Some bank statements list the total deposits as total credits. See if your total is the same as the bank statement's total credits. Add the deposit total to your previous bank balance from your prior bank statement.
Add all your withdrawals and checks together, and then subtract the total from the prior balance just obtained. This should be the same as the bank statement balance.
Discrepancies in your bank balance can help identify which deposits or withdrawals are missing. A discrepancy may include a combination of missing or inaccurate entries. To determine the combination, all you need is addition and subtraction skills.
People often forget to record interest earned or service fees. Also, because banks often charge $30 per check on overdrawn accounts, it is important to keep an accurate account. Be certain to record in your check register any direct withdrawals and fees from your account as they occur.
- Photo Credit Creatas Images/Creatas/Getty Images
What Is the Purpose of a Bank Reconciliation Statement?
Bank account reconciliations are both practical and critical cash control procedures. Completing one for each of your checking and saving accounts is...
How Is Math Used in Paralegal Studies?
Math used by paralegals ranges from simple to complex, but it is used in every practice area. Here are some examples of...
Bank to Book Reconciliation
One method of reconciling a checkbook or accounting records is called bank to book reconciliation. It begins with the bank's balance according...
How to Reconcile a Bank Statement
Monthly bank account reconciliations are vital for protecting both your money and your business. A typical statement lists transactions and the bank...
Jobs That Involve Simple Math
There are a wide array of jobs and career positions that involve the use of simple mathematics such as addition, subtraction, multiplication...
Advanced Bank Math Game in Montessori
Get your preschooler ahead with math games. Learn to play a bank math game in this free educational video clip about Montessori...
How Does Banking Relate to Math?
Banking is a world of numbers, and math is used in the way accounts are handled, for calculating interest rates and for...
What Is the Definition of Bank Reconciliation Statement?
A bank reconciliation statement means that a person is carefully tracking the cash flows in and out of their business compared to...