How to Balance a Checkbook Using Statements
If you have a new checking account, or if you need a refresher on how to balance your checkbook, it's easy to learn how to get and stay in balance. You may also want to refer to the related eHow article, "How to Regularly Balance Your Checkbook." If your checkbook reflects numbers out of balance for several months, and you feel hopelessly lost, this is the article for you.
Other People Are Reading
Instructions
-
Get a Working Balance in Your Checkbook
-
1
Obtain a check register. Relax and breathe. You don't have to close your account; but you do have to work at it. Sign up for online banking or get a printout of your account transactions for the past 30 days from your bank. Write everything shown in your check register. If your checkbook has been out of balance for much longer than that, disregard older transactions. You will reconcile your bank account from this point forward.
-
2
Use the spaces in your check register. In the first column, write DEP for Deposits, WD for Withdrawals, AUTO for Automatic Payments, DBT for Debit Card purchases, FEE for bank fees and check numbers for any checks you've written. Fill in dates and descriptions. Put Debits (-) and Credits (+) in the correct column. Debits include all payments, withdrawals and bank fees. Credits include Deposits and Dividends.
-
-
3
Do the math. Use a calculator to figure out the new Register Balance. Check the numbers for accuracy against the total. If you haven't totaled your checkbook for a long time, skip to Step 4.
-
4
Go through the bank statement item by item. Using red ink, place an X next to each amount that appears both on the statement and in your check register. (Mark both.) Keep your X's in a straight line. (Some registers have a column just for this purpose.) If you find any item on the statement that you forgot to write in your register, record it.
-
5
Use a highlighter dot to mark the first item that you encounter written in your register but not on the bank statement. Return to this starting point next month.
-
6
Write the bank statement balance on a clean sheet of paper. Add or subtract every item not marked by a red X. This is your Adjusted Bank Balance, and it should match the balance in your check register. If you haven't totaled your register for a long time, record the Adjusted Bank Balance as your new Register Balance and move on to Step 2, Section 2, Correct the Problem.
-
7
Still out of balance? Check your math. Take the higher balance and subtract the lower one. If the result can divide evenly by 9, it's likely a transposition error. ($9.84 instead of $8.94) If not, you may have put something in the wrong column (subtracting a deposit, for example.) Multiply and divide the discrepancy by two and look for those two numbers in your register. Fix any math error you encounter.
Correct the Problem and Find the True Balance
-
8
Draw a red line underneath the balance in your check register. If your check register balance agrees with the Adjusted Bank Balance, write BAL next to it. If not, skip a line and write "My Balance: xxx, Adjusted Bank Balance: xxx, Difference: xxx." Highlight the line. For this month only, choose the lower balance as your new register balance. Remember, this total is not accurate, but it's getting there.
-
9
Write every new transaction faithfully into your check register. Tally your balance as you go. When you get your next bank statement, repeat all the steps above, except continue using your register balance, even if it's the higher of the two. (It's still an inaccurate, transitional total. Take measures not to overdraw the account.) The difference between your Register Balance and the Adjusted Bank Balance is likely to fluctuate at first. This is normal.
-
10
Find your real balance. After about 60 days, when the bank records all previously unmarked transactions, the discrepancy between your Register Balance and the Adjusted Bank Balance becomes consistent. After three consecutive months of the exact same discrepancy, go ahead and apply it to your total. Congratulations, you're now back in balance.
-
1
Tips & Warnings
Buy duplicate checks. If you forget to write one down, the carbon copy has all the information you need.
On alternating months, mark off your transactions with a different symbol or a different color of ink. It makes tracking an error a simpler process.
During this process, you will not see accurate totals. Take care not to overdraw your account.
