How to Reconcile Bank Accounts

Reconciling a bank account may sound intimidating, but does not require special accounting skills. However, to properly reconcile a checking account requires stringent record keeping and faithful comparison of documents such as debit card receipts and monthly banking statements. Fortunately, record keeping can be made a lot easier through online banking and typewritten or handwritten information. Properly reconciling a bank account will help you avoid unwanted returned checks and overdraft fees, and can be done in a small amount of time.

Instructions

1. Write down every single check you wrote and debit card purchase made. The easiest way is to write the withdrawal transactions, also known as debits, into your checking account register. However, there are some alternatives. You could get checks that make duplicate carbon copies for each document written, type the information into a Microsoft Word or Excel file, or even write the data in a small handheld notepad.

2. Write down every deposit made into your account, whether through an in-person or ATM transaction, or direct deposit from your employer.

3. Add together all of your credits.

4. Subtract the sum of all pending debits from your total credits, which will create your true checking account balance. Remember to take into account any regularly scheduled bill payments, electronic bill payments and applicable fees that your bank might assess.

5. Compare your monthly bank statement (whether you get it online or through postal mail) with your information. If something seems wrong, make sure it is not from improper record keeping. If you are certain an unauthorized transaction went through, immediately visit or call your bank.

Tips & Warnings

• Consider getting online banking if it is available and reconciling your bank account each week instead of monthly as is the traditional method. This is especially helpful if you make a lot of debit card transactions.