Sponsorship Guide
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By Mercedes Bailey
Reconciling Your Checking Account
After you set up your checking and savings accounts, you will receive monthly bank statements. With a bank statement, you can track your bills and, if you use a bank card, your spending. You can also compare deposits with withdrawals and learn how much interest is working for you.
The night or weekend after your bank statement arrives is a good time to reserve for your routine review and "reconciliation" of your checkbook. The goal is to review your deposits and withdrawals over the past month and note any discrepancies between your records and the bank's.
The process is not hard or even lengthy. Just follow these steps:
- Find the balance for your checking account on the bank statement and compare the bank figure with the figure in your checkbook register. Check the dates carefully. Some of the transactions that you have recorded may not have cleared with the bank yet. Do not include these transactions in your calculations.
- If you see a significant difference (more than $20.00), check your math with a calculator. In math error doesn't account for the discrepancy, then write the bank figure in your register and proceed with Step 3. You will have to return to the discrepancy after the current month's reconciliation.
- Check off each check paid by the bank both in your register and on your statement. If you find a gap in the number sequence, look to see whether that check was paid previously or is still outstanding.
- Use the calculator to add up the amount of all your checks paid out that month. That number should be the same as the total figure identified for checks by your bank.
- Examine all the electronic withdrawals that you've made with your ATM card and/or your bankcard; then add these up on your calculator.
- Check for transactions that you have forgotten to record-for example, service fees. Record any missing information in your check register.
- Combine the total amount of your checks with the total amount of your electronic withdrawals and other fees. This final amount should equal the figure identified as the total withdrawals made for the month.
The most common source of discrepancy between your records and the bank statement is arithmetic. You may want to use a calculator to check your math. The second most common source is forgetting to record a transaction.
After you reconcile, pat yourself on the back. You've started a great money-management habit.
If despite your efforts and conscientious record-keeping, you can't reconcile your records to match the banks, call the bank or schedule an appointment.
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