![]() Keep a checkbook, keep track of your balance, and balance your checkbook to the penny every month.Do a partial reconciliation with your bank statement, but adjust your checkbook balance to the adjusted bank statement balance (see below) once you get close. Use it to compare your transactions to your bank statement. Keep a checkbook and keep track of your balance.In either case, you trust that the balance reported by the bank is right and up-to-date. Or, some bank apps can send you an e-mail or text for every transaction on your account as it happens so you can check them. Use it to compare with your bank statement to make sure all of the transactions on your statement are right. Keep a checkbook without keeping track of your balance.Trust that the bank balance you see on your phone or online is right and up-to-date. Review your bank statement every so often to make sure all of the transactions look accurate.Ignore the whole thing and assume that whatever the banks says is your current balance is right and up-to-date.In practice, I’m aware of at least six different ways you can use your bank statement, in order from riskiest and least effort to lowest risk and most effort. Make sure that the adjusted bank statement balance equals the value in my checkbook, finding any missing transactions or arithmetic mistakes if they aren’t the same.Adjust the balance on my bank statement for any transactions that are in my checkbook that aren’t on my bank statement.Make sure I’ve properly recorded any voided checks in my checkbook.Compare the deposits and withdrawals on my statement with the ones I entered in my transaction register since I balanced to my statement last month.Compare the deposits and withdrawals on my statement with the ones that were outstanding when I balanced to my statement last month.When I think of balancing my checkbook, I envision the key steps as: My mother had a deposit she had mailed to a brokerage firm get burned up in a plane crash on its way to the bank. I also had a utility that I paid by automatic transfer take too much out of my account one month. In another case, the bank put the money from a large deposit into someone else’s account. In one case, the bank transferred money from my checking account to my savings account instead of the other way around. ![]() ![]() Although it has been many years since it has happened, I am aware of a few mistakes with my account. When you balance your checkbook, you are confirming that you have included all transactions and performed all of the calculations correctly.Ī secondary reason to balance your checkbook is to ensure that none of the bank, you or any vendors has made a mistake. ![]() ![]() By maintaining such a list, you can keep track of your current account balance to monitor whether you are staying on track with your budget or whether you can afford a particular purchase. A list of your bank account transactions is often called a checkbook, check register or transaction record. The primary reason to balance your checkbook is to make sure that you always have an accurate picture of your financial position.
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