Remember those days when you were a child, your mom or dad would tell you they had to “balance my checkbook,” and all you could envision was them standing in the middle of the room, one foot off the ground, and the checkbook balancing on their head? Well, the days have come for you to finally find out the real meaning!
To balance a checkbook means to compare your records to your bank statement, making sure everyone is on the same page. This will help warrant that you don’t acquire unnecessary overdraft or bounced check fees.
Here are some things that may have occurred between statements:
You forgot to enter a transaction
You made a mathematical error when recording your transactions
The bank made an error
A check you wrote has not been cashed, making it seem you have more funds available than you really do
Here are some tips on easy and effective balancing:
In Your Register Checks and purchases: mark off the checks that your statement has listed as cleared checks. Make sure, by looking through your carbon copies or canceled checks, that the amount of each check matches up. If there is a check you forgot to record, do that now.
Do the same thing for any other transactions, such as ATM withdrawals, debit card purchases, and online payments.
If there are checks or purchases in your register but not on your statement, don’t check them. They just haven’t been cleared yet and will show up on a later statement."
Deposits: check off the deposits that are on your statement.
Do not check off the deposits that have not yet appeared on your statement, they will appear on the next one.
Fees and Interest: if your statement displays any service fees or interest payments, add or subtract these in your register.
On Your Statement Use the form on the back of your statement to be sure that nothing has been left out or miscalculated.
The information contained in all articles, links, sponsored articles, and FAQs within this website does not necessarily represent the views of Abbey Credit Union and its affiliates. This website is designed to offer helpful hints to consumers. Please consult an attorney, CPA, or other professional for expert advice.
