Instructions to Reconcile Checking Accounts

Reconcile your checking account to avoid late payments and overdraft fees

To avoid bouncing checks and ending up with loads of overdraft fees and other penalties, it's important to reconcile your checking accounts on a regular basis. How often you reconcile your checking account is up to you, but most people tend to reconcile their accounts on a monthly basis, based on the fact that most bank statements are sent out once a month. However, in today's day of online bank statements, you can access your checking account information anytime of the day or night, which means you can reconcile your account monthly, weekly or even daily.

Things You'll Need

• Recent bank statement
• Calculator
• Checking account register

Instructions

1. Keep track of the money coming out of your checking accounts. Use the convenient checking account register that usually comes with your checkbook to record each check written. Don't forget to record debit card payments and ATM withdrawals too; if you don't want to take the time to write each debit into your register right away, try keeping your debit card and withdrawal receipts in your checkbook register. You can enter the payments in later, when it's time to reconcile your checking account.

2. Schedule time to reconcile your checking accounts. If you want to stay on top of your checking account to avoid overdraft fees and late payments, you'll need to set aside time each month or week to reconcile your accounts. You could choose the first Sunday of each month, for example, or every Wednesday evening. Just pick a time that is convenient for you, so you don't put off the task, and be sure to stick to it.

3. Reconcile your checking accounts. Sit down with your bank statements, checkbook registers, receipts and a calculator. Cross-check the payments in your checkbook register against the payments shown in your bank statement. In your checkbook register, check off the payments that also appear on your bank statement; those items are complete and accounted for. In your checkbook register, record any payments that appear on your bank statement but not in the register. Check off the item in your register to show that the payment has been processed.

4. Calculate the remaining balance in your checking accounts. Once you've recorded all payments in both your bank statement and checkbook register, determine how many debits, if any, are shown on your checkbook register but don't appear on your bank statement. Add up all of the debits that have not yet been taken from your checking account and deduct that total from the balance shown on your bank statement. That amount is the sum of money you currently have available in your checking accounts.

References

• Student Finance Domain: How to Balance a Checkbook
• Money Rates: Tips to Reconcile Your Bank Account