Once you have completed these steps, you will then have your current available balance. When you have added these deposits together, you can add them to your overall records. Record all deposits you may have received, including paychecks, monetary gifts, money transferred from a savings account, etc. You can subtract these from your opening balance for the period you are balancing your checkbook.Īfter you have recorded all checks and withdrawals, it’s time to add to your balance. This will reflect all transactions that have occurred or are still pending in your account. Next, you will list any withdrawals you have made over that period. If you have written any checks, you will want to record the check number, date, a brief description of what the check was for, and the amount of the check. To begin the process of balancing your checkbook, you will have to record each transaction made in your checkbook register. If you are confused about any of the fees you see on your bank statement, you should contact your bank as soon as possible to get more information about what you are being charged for, and understand whether or not you may be able to avoid some of these fees. Depending on your bank or credit union, there are often fees associated with holding particular accounts that depend on your deposit statements, transfer frequency and other details unique to your bank. By balancing your checkbook, you will be able to calculate these transactions to reflect how much money you have in your checking balance.Īdditionally, it is important to take note of any fees you may be charged for your account. This can include any purchases you have made, or any money you may have taken out at an ATM. Withdrawals are reflected as subtractions in your account. Deposits are reflected as additions to your account balance, such as paychecks, or having money transferred into your account. To understand the process of balancing your checkbook, you will first need to understand the types of transactions: deposits and withdrawals. What transactions affect my account balance? To balance your checkbook, you will need to access your online banking account, and take note of your transaction records in your checkbook. Today, online banking has simplified this process, making it easier than ever before to access your bank statements and information. Until recently, you would have to take your paper bank statement and go through each transaction to compare to the transactions in your checkbook. In the past, balancing your checkbook was more of an undertaking that required a few hours and a good deal of organization to complete. These errors can include errors on your bank statement, or vendor errors. Additionally, you will be able to determine any errors in transactions from your account. Keeping these records will help you to keep track of checks you’ve written to ensure they clear with adequate money in your account, and any automatic payments you may have set up on your account. The goal of balancing your checkbook is to ensure the records you are keeping regarding your transactions are reflected in your bank statement. Why is it important to balance my checkbook? Learning how to balance your checkbook will help you to keep a record of your regular transactions, and how to balance that record. Though it may seem like an antiquated practice, balancing your checkbook can help you organize your transactions and monitor your spending more closely. While online banking is a useful tool to give you a quick look at your transaction information and current balance, it’s still important to understand how to balance your checkbook. From a basic standpoint, this may be all you need when trying to get a fast ideal of how much money is available in your account. Nowadays, most people have online banking to help them evaluate their checking account balance.
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