How to Balance Your Checkbook: Step-By-Step Instructions

How To Balance Your Checkbook: Step-by-step Instructions

Reconcile Your Checks

In your checkbook register, check off each cancelled check returned to you or each check that appears on the check listing, making sure the amount you recorded is the amount the bank shows.

Reconcile Your Deposits

Check off the deposits in your check register as you did for checks.

Reconcile Your ATM Withdrawals and Debit Card Purchases

Go through the same process with your ATM withdrawals or debit card purchases, checking off each transaction on the bank statement in your check register. If the bank shows transactions that aren't included in your check register, record them now.

Record Interest Earned and Bank Fees

Check your bank statement for any other fees and record them in your checkbook register. Also record any interest earned in your checkbook register.

List Outstanding Checks

Now go through your checkbook register and in the left column of the reconciliation form list your outstanding checks (the checks that you did not check off in your check register as having cleared the bank), as well as any outstanding debit purchases or ATM withdrawals that have not yet cleared the bank. Total the column of outstanding checks, debits, and ATM withdrawals.

List Outstanding Deposits

Go through your checkbook register and in the balancing / reconciling form list the outstanding deposits (the deposits that you did not check off in your check register as having cleared the bank). Total any outstanding deposits.

Record Your Bank's Ending Balance

On the line provided in the Checkbook Balancing Form, enter the ending balance shown on your bank statement.

Enter Outstanding Deposits

On line provided of the Checkbook Balancing Form, enter the total outstanding deposits.

Enter Outstanding Checks

On line provided of the Checkbook Balancing Form, enter the total outstanding checks.

Calculate Your Balance

Use a calculator to total lines, as indicated by the plus and minus signs on the form, and calculate the adjusted ending balance. This should equal the balance shown in your checkbook register. If it doesn't, check for math errors in your checkbook register, such as reversed numbers (e.g., $53 instead of $35), subtracting a deposit instead of adding it, adding a check written instead of subtracting it, automatic payments that you forgot to record, etc.

Checkbook Reconciling Practice

Would you like some practice reconciling your monthly statement with your checkbook register? While some people rank reconciling a checking account right up there with having a root canal, it's really not bad at all.

On the following pages, you'll find:

A sample completed checkbook register

A sample account statement

A blank reconciliation work sheet

The completed reconciliation work sheet (don't peek at the answers)

Print off these pages and either complete the reconciliation work sheet by hand or use the online Checkbook Balancing Calculator.

Sample Checkbook Register

ITEM NO. / DATE / TRANSACTION DESCRIPTION / SUBTRACTIONS
AMOUNT OF PAYMENT / √ / FEE / ADDITIONS
AMOUNT OF DEPOSIT / BALANCE
500 / 00
6801 / 9/1 / Athletic Shoe Co. / 55 / 63 / 55 / 63
Running shoes / 444 / 37
9/4 / Work paycheck / 235 / 00 / 235 / 00
Direct deposit / 679 / 37
6802 / 9/6 / Food 'n Shop / 22 / 36 / 22 / 36
Groceries / 657 / 01
6803 / 9/10 / Credit Union / 25 / 00 / 25 / 00
Cash / 632 / 01
9/17 / ATM / 15 / 00 / .50 / 15 / 50
Cash / 616 / 51
9/18 / Work paycheck / 355 / 00 / 355 / 00
Direct deposit / 971 / 51
9/23 / Energy Plus Utility / 26 / 75 / 26 / 75
Electric bill autopay / 944 / 76
6804 / 9/28 / Aria Dayson / 23 / 00 / 23 / 00
viola lessons / 921 / 76
9/28 / Best-Mart / 35 / 50 / 35 / 50
Refund check / 957 / 26
Sample Account Statement
BANK STATEMENT
Your Bank
Anyplace USA / Page 1 of 1
Thomas B. Anderson
2063 Pleasant Road
Anywhere, USA 12345 / Statement Closing Date
September 30, 20XX
PREMIUM CHECKING ACCOUNT
Beginning Balance on August 30, 20XX / $500.00
Deposits and other additions / +590.00
Checks paid and other subtractions / -122.88
Trans. Date / Description / Debits / Credits / New Balance
8/30 / Beginning balance / 500.00
9/01 / Check No. 6801 / 55.63 / 444.37
9/04 / ACH: Payroll / 235.00 / 679.37
9/10 / Check No. 6803 / 25.00 / 654.37
9/17 / ATM: Withdrawal S51491 6 / 15.50 / 638.87
9/18 / ACH: Payroll / 355.00 / 993.87
9/23
9/30
9/30 / ACH: Energy Plus Utility
Service Fee:
Interest earned / 26.75
5.00 / 1.25 / 967.12
962.12
963.37
9/30 / Closing balance / 963.37

Blank Reconciliation Work Sheet

CHECKING ACCOUNT RECONCILIATION
OUTSTANDING CHECKS
NUMBER / AMOUNT
Total Below goes on line (C)
TOTAL
Deposits not shown on the statement
AMOUNT
TOTAL BELOW
Goes on Line (B)
/ CLOSING BALANCE SHOWN
ON THIS STATEMENT ______(A)
PLUS DEPOSITS
NOT SHOWN ON THIS STATEMENT ______(B)
SUB-TOTAL ______(A+B)
LESS TOTAL OUTSTANDING CHECKS ______(C)
ADJUSTED ENDING BALANCE ______(A+B) – (C)
Adjusted ending balance shown above should agree with the balance shown in your checkbook register.
Note: Be sure to deduct any charges, fees, or withdrawals shown on your statement (but not in your checkbook register) that may apply to your account. Also, be sure to add any dividends or any deposits shown on your statement (but not in your checkbook register) that apply to your account.

Sample Completed Checkbook Register

ITEM NO. / DATE / TRANSACTION DESCRIPTION / SUBTRACTIONS
AMOUNT OF PAYMENT / √ / FEE / ADDITIONS
AMOUNT OF DEPOSIT / BALANCE
500 / 00
6801 / 9/1 / Athletic Shoe Co. / 55 / 63 / √ / 55 / 63
Running shoes / 444 / 37
9/4 / Work paycheck / √ / 235 / 00 / 235 / 00
Direct deposit / 679 / 37
6802 / 9/6 / Food 'n Shop / 22 / 36 / 22 / 36
Groceries / 657 / 01
6803 / 9/10 / Credit Union / 25 / 00 / √ / 25 / 00
Cash / 632 / 01
9/17 / ATM / 15 / 00 / √ / .50 / 15 / 50
Cash / 616 / 51
9/18 / Work paycheck / √ / 355 / 00 / 355 / 00
Direct deposit / 971 / 51
9/23 / Energy Plus Utility / 26 / 75 / √ / 26 / 75
Electric bill autopay / 944 / 76
6804 / 9/28 / Aria Dayson / 23 / 00 / 23 / 00
viola lessons / 921 / 76
9/28 / Best-Mart / 35 / 50 / 35 / 50
Refund check / 957 / 26
SERVICE FEE / 5 / 00 / √ / 5 / 00
952 / 26
INTEREST / √ / 1 / 25 / 1 / 25
953 / 51

Completed Reconciliation Work Sheet

CHECKING ACCOUNT RECONCILIATION
OUTSTANDING CHECKS
NUMBER / AMOUNT
6802 / 22 / 36
6804 / 23 / 00
TOTAL / 45 / 36
/ ENDING BALANCE SHOWN
ON THIS STATEMENT / 963.37
PLUS DEPOSITS
NOT SHOWN ON THIS STATEMENT / 35.50
SUB-TOTAL / 998.87
LESS TOTAL OUTSTANDING CHECKS / 45.36
EQUALS ADJUSTED ENDING BALANCE / 953.51
Adjusted ending balance shown above should agree with the balance shown in your checkbook register.
Note: Be sure to deduct any charges, fees, or withdrawals shown on your statement (but not in your checkbook register) that may apply to your account. Also, be sure to add any dividends or any deposits shown on your statement (but not in your checkbook register) that apply to your account.