How to Balance Your Checkbook

Learn how to finally balance your checking account every month. From finding errors in your check register to accounting for bank charges you will always know where you stand with your cash flow.

Instructions

Difficulty: Moderately Easy

Things You’ll Need:

• Your Checkbook
• Your Bank Statement
• Calculator
• Red & Blue Pens
• Scratch Paper

1. Using your BLUE PEN enter any bank charges, fees or interest(such as maintenance fees, overdraft charges, ATM fees or interest paid to you) into your checkbook and check them off. Re-total your checkbook. Check these off of your bank statement also.
2. Using your BLUE PEN check off all the checks (or electronic payments, transfers out or ATM withdrawls) in your checkbook that are listed on your bank statement (add any entries from your bank statement that are not listed in your checkbook and re-total your checkbook) Check these off of your bank statement also.
3. Using your BLUE PEN check off all the deposits (or electronic transfers in) in your checkbook that are listed on your bank statement (add any entries from your bank statement that are not listed in your checkbook and re-total your checkbook) Check these off of your bank statement also.
4. Make a list of ALL the checks (including bank fees, ATM withdrawls, tranfers out, electronic payments etc)that are not checked off in your checkbook. Total these checks.
5. Make a list of ALL the deposits (including interest paid to you, transfers in, etc) that have not been checked off in your checkbook. Total these deposits.
6. Find the ENDING BALANCE on your bank statement. Add to this ending balance the total of the deposits on your list (step 5) AND subtract the total of the checks on your list (step 4). This net amount should match the last balance in your checkbook.
7. If these amounts do not match double check that you have entered all the bank charges and fees and also double check that you have checked off everything on your bank statement. If you still have items on your bank statement that have not been checked off either find the items in your checkbook or add them now. (don't forget to re-total your checkbook)
8. If you have not yet found the error, find the difference between the two amounts by subtracting your calculated balance (step 6) from the balance in your checkbook.
   
   Check to see if this difference is the same amount as one of your checks or deposits.
   You might have a duplicate entry.
   If the difference is divisible by nine you may have switched the numbers in one of your entries. For example you might have entered $48.73 in your checkbook but the amount for the item appears as $48.37 on your bank statement.
   
   Use your RED PEN to check each check, deposit and bank fee again to find any errors. This time double check that each amount is EXACTLY the same.