Checkbook Balancing

Accounts

Checkbook Balancing

How Do You Balance Your Checkbook?

What Category Do You Fit Into?

Nice Try, But Not Quite... Out of Sight, Out of Mind...
You try balancing your checkbook on paper. You "do the math" in your head.
You find balancing numbers frustrating. You avoid the frustration of balancing numbers.
Nothing seems to add up! You ignore monthly statements and other tracking tools.

PEFCU can help simplify the balancing process and reduce the anxiety of the arrival of your monthly statement.

How Your Account Statement Works

Seldom will your account statement and checkbook register agree. Don’t panic when that happens. It’s merely a matter of timing.

  • Statement Closing Date: Your statement lists the transactions posted to or cleared to your account as of the statement closing date. The closing date is usually found in the upper right-hand corner of the first page of your statement.
  • Post-Closing Date Transactions: Once your statement has closed, it will take a few days to print and mail the information captured on the statement closing date. When your statement arrives, it will not include checks, withdrawals, deposits, ACH transactions, or other activity posted to your account since the most recent statement closing date. Please track this new activity in your checkbook register. They should appear on the following month’s statement. Note: It could take a few days for new transactions to post to your account.
  • Record, Balance, Repeat! Using your checkbook register to record each transaction that adds or subtracts from the balance is the first step to simplifying the balancing act. Record the transaction at the time of withdrawal, deposit, check writing, etc.
  • The Balancing Act: Balancing your checkbook as soon as you receive your monthly statement will reduce stress and the time needed reconciling your accounts.
  • Checkbook Reconciliation Form: Use the form on the back of your statement to help you balance your account. You’ll just need the following:
    • Your last two account statements
    • Your check book register
    • Any debit or ATM Card receipts from the current month not yet recorded in your checkbook register

Click here for the Checkbook Reconciliation Form and Account Disclosure

Seven Steps to Balancing

1. Record Services Charges, Etc.

In your checkbook register, record any charges that have been subtracted from your account, as shown on your statement. These charges may include:

  • Monthly Services Charges

  • ATM Transaction Charges

  • Non-Sufficient Funds Fees

Subtract these charges from your register balance:

Last Checkbook Balance $                                  
Interest from Statement (+) $
SUB-TOTAL $
Services Charges from Statement (+) $
"New" Checkbook Balance $

 

2. Verify Deposit Amounts

Look at your latest statement and verify that all deposits listed match the deposit amounts listed in your checkbook register.

Make a list of any deposits that are listed in your register but do not appear on your statement. Add these together.
*Tip: Use the worksheet on the back of your statement.

Date Outstanding Deposits Amount
     
     
     
TOTAL  

 

3. Match All Check Entries

Match the entries in your register with the transactions listed on your bank statement. Compare check numbers, dates, and dollar amounts on all checks written. If these items match, place a check mark (✔) next to the transaction in both your register and on the bank statement.

 

If Transactions Don't Match
If the items don’t match, circle them in both places so that you can come back to fix the error once all of the transactions have been checked off. Then check for one of the following errors:

  1. View and/or review your canceled checks or check images, deposit receipts, and/or ATM and Visa Debit Card receipts.
  2. Remember that some items will not be checked off. These are called "outstanding items."

 

4. Check for Outstanding Items from Previous Statment

Be sure that all of the outstanding items from your previous statements have been included in this statement. Otherwise, they are still outstanding.

*Note: If an item is outstanding for 60 days or more, contact the person or company you wrote the check to and see if the check has been received. If it hasn’t, we recommend that you call the credit union to request a stop payment.

 

5. List All Outstanding Checks

Make a list of all outstanding checks or ATM/Visa Check card withdrawals and debits. These are transactions that appear in your checkbook register that do not have a check mark (✔) next to them. Add these items together. Tip: Use the worksheet on the back of your statement.

 

6. Balance

Now balance your checkbook register to your bank statement. Use the formula below, which is also located on the worksheet on the back of your statement.

Statement Ending Balance $                          
(+) Deposits Shown in Checkbook Register But Not on Statement $                          
SUB-TOTAL $                          
(-) Total Outstanding Checks $                          
TOTAL $                          

Compare this total with the ending balance in your checkbook register. They should match. If they do, then congratulations! You’ve successfully balanced your checkbook.

If the register and statement don't match, then there may be a mistake. Don't panic. This can be easily fixed.

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