How to Balance a Checking Account With Microsoft Money

Balancing your checkbook regularly helps keep you from overdrawing your account, but it can be a chore. Microsoft Money makes it easier to track all of your assets with its account recording and managing features, including help to balance your checkbook.

Difficulty: Moderately Easy

Instructions

Things You'll Need:

• Microsoft Money account
• Current bank statement

Creating a Money Checking Account

1. Get your most recent bank statement or a copy of your checkbook register.

2. Select "Account Setup" from Microsoft Money's "Accounts and Bills" menu. Choose "Add a New Account" to display the "New Account" wizard. You also may access the wizard by selecting "New" from the "File" menu, then selecting "New Account…" from the submenu.

3. Enter the name of your financial institution or select an already-entered institution if the account is held there and click "Next." Match it to one of the listed financial institution names or select "Not Listed" if it does not match and click "Next."

4. Choose "Checking" when asked what kind of account to set up, click "Next," give the account a descriptive name and click "Next" again.

5. Enter the account number and account balance on successive screens. (You can add the account number and correct your account balance later, if needed.) Use the date you opened the account, the start of the current tax year or the statement date as the starting date for the account. Click "Next."

6. Indicate if you wish to set up other accounts held at this institution and click "Next."

7. Click "Finish." Enter deposits and withdrawals from your bank statement(s) or checkbook register as appropriate.

Balancing Your Account in Money

8. Select "Account List" from the "Accounts & Bills" menu and your account from under "Pick an account to use." You also may select your account from the "Favorite Accounts" section of the "My Money Home" page.

9. Click "Balance This Account" under "Common Tasks" on the left pane.

10. Enter your bank statement date and ending balance in the appropriate fields. Enter the starting balance if this is your first time balancing the account; otherwise, it should be the same as the ending balance from the last time you balanced the account.

11. Input any service charges and interest earned not already downloaded into the appropriate fields and click "Next."

12. Compare your statement transactions against those in Money's account register and click the "C" (for "cleared") field of those that match. Click on any incorrectly entered transactions and enter the correct amounts.

13. Input any transactions on your statement not in your account register by clicking "New," entering the details and then clicking the "C" column.

14. Look at the differences between your cleared account register balance and your bank statement balance. When this difference is zero, your account is balanced. If the figures don't match, repeat Steps 5 and 6 using Auto Reconcile or entering an adjustment amount.

Balancing Your Account Manually With Money

15. Enter checks in your Money account register as you write them.

16. Input outstanding bank charges, deposits and interest earned from your statement into your account register.

17. Write down the ending balance from your bank statement and any deposits and withdrawals from your Money account register not found on your statement.

18. Choose "Calculator…" from the "Tools" menu. Add all outstanding deposits to your ending bank statement balance and subtract the total of outstanding withdrawals from it.

19. Compare the result to the account balance in your Money account register. If they're the same, you've balanced your checkbook. If not, recheck your entries and your math.

Tips & Warnings

• Keep your paper checkbook register even after setting up your Money account register. This provides a backup should your computer crash and disciplines you to keep track of what you spend by recording your checks.
• Use carbon checks that create copies when you write them so you have a record of your expenses if you forget to record them in your checkbook register or Money account register.