How to Reconcile a Bank Account Balance
Reconciling a bank account is about determining the availability of funds. Because there is a delay between when checks are written or deposited and when they clear, the actual balance in your account may not reflect all of its resources or liabilities. With a simple process of reconciliation, you can easily prevent over-drafting your account.
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Instructions
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Gather materials. Most of the items you need to reconcile a bank account balance are paper documents like receipts and your checkbook registry. You can get your current bank statement online.
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Enter transactions in your checkbook register. To bring your checkbook up to date, enter all transactions on the account. Use your receipts and current bank statement to be as complete as possible. Place a check next to items that appear in your bank statement to indicate that these are reflected in your current balance.
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Add deposits. To your current balance, as reflected in your bank statement, add any deposits you've made that have not yet cleared.
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Subtract expenditures. To the figure in the previous step, subtract any outstanding checks or other drafts that have not yet been applied to the account. The resulting figure, called the ending balance, represents the true availability of funds in the account.
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Tips & Warnings
Reconciling your bank account should be done at least every month, but it can be done more frequently. You can also use software that automatically reconciles your account if you enter in all the transactions and balances into the program.
